TaxSavvyKW

Paying the employee's PIFSS share

Can the employer pay the Kuwaiti employee's PIFSS share?

The situation

The employee share is 8% up to KWD 2,750 plus 2.5% up to KWD 1,500, per PwC.

The law

  • Social Insurance Law (administered by PIFSS): Kuwaiti employees: employer 11.5% and employee 8% of salary up to KWD 2,750 a month, plus employee 2.5% up to KWD 1,500; expatriates are not covered

What it means for you

If the employer bears it, it is an extra cost, which should be agreed in the contract. Example: salary KWD 1,500 means about KWD 157.5 a month more for the employer.

What to do

  1. Agree in the contract.
  2. Compute the cost.
  3. Run payroll.
  4. Record.

We can do this for youPIFSS contributions for Kuwaiti staff and end-of-service planning for expatriates: KWD 150

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