Leave Salary Calculation in Kuwait (2025 Guide): Accurate, Legal & Easy to Understand

Understanding how leave salary is calculated in Kuwait is crucial for both employers and employees. Kuwait’s labor law offers clear guidelines to ensure fair compensation for annual leave. This article explains everything you need to know, including the formula, legal context, workweek differences, and multiple examples — all tailored to current standards in 2025.

📘 What is Leave Salary?

Leave salary refers to the paid amount an employee receives during their annual leave. In Kuwait, the labor law ensures employees are financially compensated during this time off — whether they are taking it now or receiving it at the end of their service as compensation for unused days.

This includes:

• 🎯 Annual leave days

• 🧮 Payment in advance

• 🔢 Unused leave payout at resignation or termination

⚖️ Legal Basis: Kuwait Labor Law

Kuwaiti labor law ensures that employees receive paid leave after completing a specific duration of service.

• Article 70: Entitles workers to 30 days of paid leave annually after 9 months of continuous service.

• Article 71: Employees must receive leave salary in advance before starting their annual leave.

• Article 72: Employees can carry over unused leave for up to 2 years, unless more is allowed by contract.

These rules ensure both transparency and employee rights.

📊 How to Calculate Leave Salary in Kuwait

Leave salary is calculated differently based on the number of working days per week. In Kuwait, most companies follow either a 5-day or 6-day workweek.

✅ For a 5-day Workweek:

• Formula:
  Leave Salary = (Monthly Salary ÷ 22) × Leave Days
  (22 is used because 5-day workers usually have 8 days off/month)

✅ For a 6-day Workweek:

• Formula:
  Leave Salary = (Monthly Salary ÷ 26) × Leave Days
  (26 is used because 6-day workers get only 4 days off/month)

These calculations exclude weekends and focus on actual working days.

📈 Real-Life Examples of Leave Salary Calculation

To help visualize how the formula works, here are a few examples based on different salaries and work schedules:

📊 Leave Salary Calculation Examples:

These examples clearly demonstrate how the number of workdays affects the final payout.

🤔 What’s Included in Leave Salary?

When calculating leave salary, consider:

• ✅ Basic monthly salary

• ✅ Fixed monthly allowances (e.g. housing, transportation)

• ❌ Exclude performance bonuses or overtime unless specified in the contract

Tip: Always check the employment contract. If allowances are considered part of the fixed pay, they must be added to the base salary.

💡 What If the Employee Quits?

If an employee resigns or is terminated and has unused annual leave, the company is legally required to pay the corresponding amount.

Example:

• Employee worked for 18 months with 10 unused leave days

• Monthly salary: 800 KWD

• Workweek: 5-day
  → Leave Salary = (800 ÷ 22) × 10 = 363.64 KWD

This is typically paid in the final settlement.

📌 Quick Summary of Leave Salary Rules

🛑 Common Mistakes to Avoid

• ❌ Calculating based on 30 days instead of 22 or 26

• ❌ Excluding fixed allowances (when the contract includes them)

• ❌ Failing to pay leave in advance

• ❌ Ignoring leave balance when processing end-of-service benefits

Avoiding these mistakes ensures both compliance and employee satisfaction.

Read more: Sick Leave in Kuwait – Employee Rights, Procedures & Latest Updates (2025)

✅ Conclusion: Know Your Rights and Calculate Fairly

Whether you’re an employer looking to stay compliant or an employee making sure you’re paid fairly, knowing how to calculate leave salary in Kuwait is essential.

By following the official formulas, including the right allowances, and using clear examples like the ones above, you can avoid disputes and ensure proper financial planning.