Home / End of service vs gratuity vs indemnity in Kuwait: what is the difference?
End of service vs gratuity vs indemnity in Kuwait: what is the difference?
In Kuwait, end of service benefit, gratuity and indemnity are different names for the same lump sum.
Quick answer: In Kuwait's private sector, end of service benefit, end of service indemnity and gratuity all refer to the lump sum an employer pays when employment ends under Law No. 6 of 2010. Provident-fund style savings are separate.
Same thing, different names
- Law No. 6 of 2010 calls it the end of service indemnity or benefit.
- Workers and HR departments often say gratuity or EOSB.
- It is paid by the employer, not deducted from your salary.
What it is not
- It is not your final month's salary or leave pay.
- It is separate from unused annual leave settlement.
Calculate yours
Use the end of service calculator and compare resignation and termination.Not legal advice. This is an unofficial summary. Rules, fees and eligibility can change, and your contract may give you more. Confirm with your employer, the Public Authority for Manpower, PACI or a licensed lawyer.
Official sources to confirm with
- PACI (Public Authority for Civil Information)
- Ministry of Interior
- Official Kuwait Private Sector Labour Law No. 6/2010 (English PDF)
- 3 Nov 2026: reviewed against published sources; added official references.
Related
Frequently asked questions
Is gratuity the same as end of service in Kuwait?
Yes. In everyday use gratuity, EOSB and end of service indemnity describe the same lump sum for private-sector employees.
Who pays it?
The employer pays it when employment ends, subject to the Article 53 resignation shares.