What is leave salary in Kuwait?
Leave salary is the money your employer pays you for the days you spend on annual leave. In Kuwait it has a special feature: the law says it must be paid before you go. So when you leave for your yearly holiday, you should receive your leave pay in advance, not at the end of the month.
A second payment is linked to it. If your job ends and you still have annual leave days that you never used, the employer must pay you cash for them. People call this leave encashment, leave balance payment or cash in lieu of leave. It is one of the items in your final settlement, along with your end of service indemnity and any salary still owed.
The calculator above gives you both figures:
- Leave salary – the pay for the leave days you are about to take (for example, a full 30-day leave).
- Encashment – the cash value of the unused leave you have built up, if you fill in the optional service section.
Your end of service indemnity is a different amount with its own rules. You can estimate it with our Kuwait Indemnity Calculator.
Who the Kuwait annual leave rules cover
The rules on this page come from Law No. 6 of 2010 on Labour in the Private Sector. It covers most people who work for private companies in Kuwait, both Kuwaitis and expats. That includes office staff, sales people, engineers, technicians, drivers employed by companies, cooks and waiters in restaurants, nurses in private hospitals and many others.
Some groups have different rules:
- Domestic workers, such as housemaids, family drivers and nannies, fall under Law No. 68 of 2015 on Domestic Workers. That law has its own leave rules.
- Government employees are covered by the civil service rules, not by the private sector law.
- Oil sector workers in some companies may have their own law or contract terms that give better rights.
If your work permit is issued through the Public Authority for Manpower (PAM) for a private company, the private sector law is very likely the one that applies to you.
The law: Articles 70 to 74 of Labour Law No. 6 of 2010
Five articles of the private sector law deal with annual leave. Here they are in plain English.
Article 70 – 30 days of paid leave
- Every worker has a right to paid annual leave of at least 30 days a year.
- For the first year, the leave becomes due after six months of service.
- Weekly rest days, official holidays and sick leave that fall during the leave are not counted as part of it.
- For part of a year, leave is earned in proportion to the time worked.
Article 70 was changed by Law No. 85 of 2017, which took effect in mid-2017. Before that, a worker had to wait nine months before the first leave, and only official holidays and sick days were excluded. The amendment reduced the waiting period to six months and added weekly rest days to the list of days that do not count. Because weekends are no longer counted, 30 days of leave now usually means 30 working days, which works out at about five to six calendar weeks, depending on whether you work six days or five days a week.
Article 71 – pay before you go
The wage for the annual leave must be paid to the worker before the leave starts.
Article 72 – timing, splitting and building up leave
- The employer decides when the leave is taken.
- With the worker's agreement, the leave can be split, but only after the first 14 days have been taken in one go.
- Leave can build up from year to year, but in general the balance should not go beyond two years of leave.
Article 73 – cash for unused leave at the end
When the contract ends, the worker has a right to a cash payment for the annual leave days that have built up and were not taken.
Article 74 – no giving up leave
A worker cannot give up annual leave, either for money or for nothing. In other words, you cannot "sell" your leave each year while you are still employed.
Any newer changes?
In 2019, a parliamentary committee in Kuwait backed a draft to raise annual leave to 35 days. As of October 2026 we did not find that this became law, and the 30-day minimum is the figure in the published amendment. If a new amendment appears in the official gazette, Kuwait Al-Youm, these rules may change. Check with PAM for the latest position.
Kuwait leave salary: divide by 26 or 30?
This is the question that causes the most confusion. The law tells you how many days of leave you get, but it does not give a fixed formula for turning a monthly salary into a daily rate. Two methods are common:
- Divide by 26. This treats a month as about 26 working days. Many legal guides in Kuwait and many employers use it. It gives the higher daily rate.
- Divide by 30. This treats every calendar day as a paid day. Some employers and payroll systems use it. It gives a lower daily rate.
The 26-day method fits well with the 2017 change that leave days are working days. If your leave is 30 working days and each working day is worth one twenty-sixth of a month, your leave pay is a little more than one month's pay. With the 30-day method, 30 days of leave is worth exactly one month's pay.
Neither method is written into the law, so your contract or company policy usually decides. The calculator lets you pick one and also shows the result under the other method, so you can see the difference.
Which pay items are included?
The law uses the word "wage" or "remuneration". The legal definition of remuneration in Kuwait is wider than basic salary and can include regular allowances that you receive each month under your contract. In practice some employers pay leave on basic salary only, and others pay full salary. Enter the figure your contract uses. If your contract is silent and there is a dispute, PAM or the labour court will decide which items count.
How to calculate leave salary in Kuwait: the formula
Step 1: Daily rate
(or Monthly remuneration ÷ 30)
Step 2: Leave salary
Step 3: Leave earned over your service
If service is under 6 months, days earned = 0
Step 4: Cash for unused leave
Encashment = Unused days × Daily rate
Amounts in Kuwait are shown in dinars with three decimal places, because one dinar is divided into 1,000 fils. The calculator rounds to the nearest fils for display only.
Worked examples
Each example matches what the calculator shows if you enter the same figures.
Example 1: A full 30-day leave on KWD 600
Rahul earns KWD 600 a month and is going on his yearly 30-day leave.
- Daily rate (÷ 26): 600 ÷ 26 = KWD 23.077
- Leave salary: 23.077 × 30 = KWD 692.308
- Same leave using ÷ 30: KWD 600.000
The difference between the two methods is KWD 92.308 for one leave. That is why it is worth knowing which method your employer uses.
Example 2: Unused leave after two and a half years
Maria earns KWD 850 a month. She worked 2 years and 6 months (30 months) and took 45 days of leave. Her contract ends.
- Days earned: 30 × 30 ÷ 12 = 75 days
- Unused days: 75 − 45 = 30 days
- Daily rate (÷ 26): 850 ÷ 26 = KWD 32.692
- Encashment: 30 × 32.692 = KWD 980.769
- Using ÷ 30 instead: KWD 850.000
Example 3: Using the 30-day method
Omar earns KWD 1,200 a month. His company divides by 30. He worked 1 year and 6 months and took 10 days of leave.
- Daily rate (÷ 30): 1,200 ÷ 30 = KWD 40.000
- Days earned: 30 × 18 ÷ 12 = 45 days
- Unused days: 45 − 10 = 35 days
- Encashment: 35 × 40 = KWD 1,400.000
Example 4: Leaving before six months
Joy earns KWD 450 and leaves after 5 months. Under Article 70, leave for the first year becomes due after six months of service. The calculator therefore shows KWD 0.000 of encashment and explains why. Some employers still pay pro-rata leave for short service as a goodwill gesture or because the contract says so. If you are in this position, ask PAM for advice.
Example 5: A large balance
Sami earns KWD 1,000 and has worked 3 years without taking any leave. He has earned 90 days. At ÷ 26 that is worth KWD 3,461.538. Because 90 days is more than two years of leave, the calculator warns him. Article 72 expects leave not to build up beyond two years, so the employer may dispute the extra 30 days. Sami should take advice before he signs his final settlement.
Quick reference: 30 days of leave at different salaries
| Monthly pay | Daily rate ÷ 26 | 30 days ÷ 26 | Daily rate ÷ 30 | 30 days ÷ 30 |
|---|---|---|---|---|
| KWD 300 | 11.538 | 346.154 | 10.000 | 300.000 |
| KWD 450 | 17.308 | 519.231 | 15.000 | 450.000 |
| KWD 600 | 23.077 | 692.308 | 20.000 | 600.000 |
| KWD 850 | 32.692 | 980.769 | 28.333 | 850.000 |
| KWD 1,000 | 38.462 | 1,153.846 | 33.333 | 1,000.000 |
| KWD 1,500 | 57.692 | 1,730.769 | 50.000 | 1,500.000 |
All figures are in Kuwaiti dinars. The 26-day method always pays about 15.4% more than the 30-day method for the same number of leave days.
Special cases
Your contract gives more than 30 days
Thirty days is a minimum. If your contract gives 35 or 45 days, enter that number in the "annual leave per year" box. The calculator will not accept less than 30, because the law does not allow it.
Public holidays during your leave
Since 2017, official holidays that fall inside your leave do not count against it. So if Eid falls in the middle of your holiday, your leave is extended by those days. The same is true for weekly rest days.
Sick during your leave
Sick leave days are also not counted as annual leave. If you fall ill while on holiday, keep a proper medical certificate and send it to your employer. Those days should be treated as sick leave, not annual leave.
Working for another employer during leave
Kuwaiti law expects annual leave to be used for rest. An employer that finds a worker took another job during paid leave may be able to recover the leave pay. Avoid doing this.
Leave split into parts
If you agree, your employer can split your leave. But the first 14 days must be taken together. After that, the rest can be taken in shorter blocks.
Resignation or dismissal
Article 73 links the cash payment for unused leave to the end of the contract. It does not depend on who ended it. Whether you resign, are dismissed or reach the end of a fixed term, earned unused leave should be paid. Your indemnity may be affected by the reason you left, but your leave balance is a separate right.
Leave beyond two years
The law expects leave not to build up beyond two years. If your employer asked you to keep working instead of taking leave, get that in writing. It will help you if there is later a dispute about paying a large balance.
Common mistakes
- Counting weekends as leave days. Since 2017, weekly rest days in the leave period do not count against your 30 days.
- Using the wrong divisor. Using ÷ 30 when your company uses ÷ 26, or the other way around, changes the result by about 15%.
- Waiting nine months. The old nine-month rule was replaced. Leave for the first year is due after six months.
- Leaving out regular allowances. If your contract pays leave on full remuneration, do not calculate on basic pay only.
- Letting leave pile up. Balances above two years can be disputed. Take your leave or put any agreement in writing.
- Mixing up leave pay and indemnity. They are separate payments with separate rules. Check both in your final settlement.
- Showing amounts with two decimals. The dinar has three decimals. Small rounding can add up on large sums.
Practical tips
- Ask HR, in writing, which divisor and which pay items they use for leave salary.
- Ask for your leave pay before you travel. Article 71 says it should be paid in advance.
- Keep a simple record of each leave you take, with dates and the number of working days.
- Before you resign, check your leave balance. You may prefer to use the days or to claim them as cash.
- Work out your full exit package with the indemnity calculator as well.
- If you are thinking of moving to another Gulf country, compare leave rules with the Qatar Leave Salary Calculator and the Saudi Vacation Salary Calculator.
- Do not sign a final settlement until the money has reached your account.
How to get official help in Kuwait
The government body for private sector labour matters in Kuwait is the Public Authority for Manpower (PAM). If your employer refuses your leave, does not pay leave salary in advance, or will not pay your unused balance at the end, you can take these steps:
- Talk to HR in writing. State your monthly pay, your dates, the leave you took and your own figure.
- Keep evidence. Save your contract, payslips, bank statements, leave approvals and civil ID copy.
- File a labour complaint with PAM. PAM has labour relations departments that receive complaints and try to settle them between worker and employer.
- Court referral. If PAM cannot settle the dispute, it can refer the file to the labour court.
- Your embassy. Many embassies in Kuwait have labour sections that can guide you, especially if you have limited Arabic.
Act quickly. Labour claims in Kuwait can be subject to time limits after the contract ends, so do not wait.
Frequently asked questions
How many days of annual leave do I get in Kuwait?
Article 70 of Labour Law No. 6 of 2010, as amended in 2017, gives at least 30 days of paid annual leave a year. Weekly rest days, official holidays and sick leave days that fall inside the leave are not counted as part of the 30 days.
When can I take my first annual leave in Kuwait?
After six months of service. The 2017 amendment cut the waiting period for the first year from nine months to six months.
Is Kuwait leave salary divided by 26 or 30?
The law does not fix a divisor. Many employers and legal guides in Kuwait divide the monthly pay by 26 working days. Others divide by 30. The 26-day method gives a higher daily rate. The calculator shows both.
Do I get paid for unused leave when I leave my job in Kuwait?
Yes. Article 73 gives the worker a right to a cash payment for accumulated annual leave days when the contract ends.
Is leave salary in Kuwait paid before the leave?
Yes. Article 71 says the wage due for annual leave is paid to the worker before the leave starts.
How long can I keep unused leave in Kuwait?
Article 72 lets leave build up, but in general not beyond two years of leave. Larger balances can lead to disputes, so plan to use your leave or agree the position in writing with your employer.
Is leave pay in Kuwait based on basic salary or total salary?
The law speaks of the worker's wage or remuneration, which can include regular allowances. In practice some employers use the basic salary only and others use full pay. Check your contract and ask PAM if there is a dispute.
Can I sell my annual leave for cash in Kuwait?
No. Article 74 says a worker cannot give up annual leave, with or without payment. Cash for leave is only clearly due when the contract ends with leave still unused.
Does this calculator work for domestic workers in Kuwait?
No. Domestic workers are covered by Law No. 68 of 2015, which has its own leave rules. This calculator is for private sector workers under Law No. 6 of 2010.
Where can I complain if my leave salary is not paid in Kuwait?
File a labour complaint with the Public Authority for Manpower (PAM). If PAM cannot settle it, the case can be referred to the labour court.
Disclaimer
This Kuwait leave salary calculator gives an estimate for general guidance only and is not legal advice. The law does not fix the daily rate or list every pay item, so your employer's method may give a different figure. Always confirm your entitlement with your employer or the Public Authority for Manpower.
Sources and references
Kuwait Law No. 6 of 2010 on Labour in the Private Sector (Articles 70, 71, 72, 73 and 74); Law No. 85 of 2017 amending Articles 51 and 70; Law No. 68 of 2015 on Domestic Workers. Official authority: Public Authority for Manpower (PAM), Kuwait – pam.gov.kw.