What are the PIFSS contribution rates in Kuwait?

For Kuwaiti nationals: the employer contributes 11.5% of insurable earnings up to KWD 2,750 a month, and the employee contributes 10.5% up to KWD 1,500 and 8% on earnings between KWD 1,501 and 2,750. Non-GCC expatriates are not covered by PIFSS. Rates may be updated periodically by PIFSS.

How is end-of-service indemnity calculated under Kuwait Labour Law?

For employees with 1+ year of service: 15 days of remuneration per year for the first 5 years, and one month of remuneration per year for each subsequent year, capped at 18 months' remuneration. Different rules apply for Kuwaiti nationals covered by PIFSS.

What are the working hour rules in Kuwait during Ramadan?

During Ramadan, working hours are limited to 36 hours per week under Article 64 of the Private Sector Labour Law (Law No. 6 of 2010).

Kuwait Payroll Compliance Guide | PIFSS, Labour Law

Quick answer

Kuwait payroll compliance requires employers to register employees with PIFSS and remit monthly social insurance contributions (employer 11.5%, employee 10.5% on insurable earnings for Kuwaiti nationals; non-GCC expatriates are not covered by PIFSS), comply with the Private Sector Labour Law (Law No. 6 of 2010) on working hours, leave, and termination, and calculate end-of-service indemnity at 15 days per year for the first 5 years and one month per year thereafter, capped at 18 months' pay. OfficeKit HR automates PIFSS calculations, leave rules, and payroll reporting.

Key regulations in Kuwait

Public Institution for Social Security (PIFSS)

Mandatory social insurance for Kuwaiti nationals: employer contributes 11.5% and employee contributes 10.5% on insurable earnings, up to a monthly ceiling of KWD 2,750 (the employee rate is 8% on earnings between KWD 1,501 and 2,750). Non-GCC expatriates are not covered by PIFSS and receive end-of-service indemnity instead; GCC nationals contribute under their home country's scheme.

Kuwait Private Sector Labour Law (Law No. 6 of 2010)

Governs working hours (48 hours/week, reduced to 36 during Ramadan), annual leave (30 days), sick leave (15 days full pay, 15 days half pay, 15 days no pay), and termination procedures for private-sector employees.

End-of-Service Indemnity (EOSI)

Employees with 1+ year of service are entitled to end-of-service indemnity: 15 days' remuneration per year for the first 5 years, and one month's remuneration per year thereafter, capped at 18 months' remuneration. Different rules apply for Kuwaiti nationals under PIFSS.

Manpower and Restructuring Authority

Oversees employment regulations, work permits, and compliance with Kuwaitization policies. Employers must maintain accurate payroll and labour records for inspections.

Compliance checklist for Kuwait

Configure salary components (basic, allowances, deductions) per PIFSS contribution rules

Set up PIFSS contribution rates: employer 11.5%, employee 10.5% on applicable components

Configure leave policies aligned to Kuwait Labour Law (30 days annual leave, sick leave rules)

Run monthly payroll with auto-calculated PIFSS contributions and mandatory deductions

Generate PIFSS contribution reports for monthly remittance

Calculate end-of-service indemnity at 15 days/year for first 5 years, one month/year thereafter, capped at 18 months' pay

Track Ramadan working hour limits (36 hours/week)

Maintain audit-ready payroll registers for Labour Authority inspections

How OfficeKit HR helps with Kuwait compliance

OfficeKit HR centralises employee records, attendance, leave, and payroll in one system — reducing manual data transfer and compliance errors. Payroll rules for Kuwait are configured within the platform, and statutory filings are generated from the same data used for pay runs.

Multi-country groups running entities in India and the GCC can manage all payroll compliance from a single HRMS, with region-specific rules applied per entity.

Kuwait Payroll Compliance Guide