What are the PIFSS contribution rates in Kuwait?

For Kuwaiti nationals: employer contributes 11.5% and employee contributes 10.5% on basic salary. For expatriates: employer contributes small social security levies as per Kuwait labour law. 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 basic salary per year for the first 5 years, and one month of basic salary per year for each subsequent year. Different rules apply for Kuwaiti nationals covered by PIFSS.

What are the working hour rules in Kuwait during Ramadan?

During Ramadan, working hours are reduced to 36 hours per week (6 hours per day) for all employees regardless of religion, as per Kuwait Labour Law Article 42.

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 eligible salary components for Kuwaiti nationals; lower rates for expatriates), 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. 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 eligible salary components. Expatriates have a separate contribution scheme managed through the Labour Law.

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 basic salary per year for first 5 years, and one month per year thereafter. 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

Track Ramadan working hour adjustments (6 hours/day or 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