Kuwait

Individual - Other taxes

Last reviewed - 07 July 2020

Social security contributions

For Kuwaiti employees, contributions are payable monthly by both the employer and employee under the Social Security Law. The employer’s contribution is 11.5% and the employee’s is 8% of monthly salary, up to a ceiling of 2,750 Kuwaiti dinars (KWD) per month. Benefits provided include pensions on retirement and allowances for disability, sickness, and death.

In addition to the above contributions, effective 1 January 2015, the employee’s contribution under the Social Security Law will increase by 2.5% of the monthly salary, up to a ceiling of KWD 1,500 per month.

Currently, there are no social security obligations for expatriate workers in Kuwait. However, for such expatriate workers, the Kuwait Labour Law provides for terminal indemnity payments (applicable only to those who have completed three years of their service) calculated at 15 days’ pay-per-year for the first three years of service and 2/3 month’s pay-per-year thereafter.