Expat end-of-service indemnity provision
How do we provide for expat end-of-service in Kuwait?
The situation
Expatriates receive a terminal indemnity under the Labour Law instead of social security.
The law
- Private Sector Labour Law No. 6 of 2010: end-of-service indemnity: Expatriate employees receive a terminal indemnity from the employer instead of social security
What it means for you
Book a yearly provision for each expatriate based on salary and service. PwC describes a formula by service years, but confirm the formula in the Labour Law before computing. Pay the indemnity at exit.
What to do
- List expats with start dates.
- Confirm formula.
- Compute provision.
- Book it.
Formula unverified.
We can do this for youPIFSS contributions for Kuwaiti staff and end-of-service planning for expatriates: KWD 150