PIFSS salary ceiling
Our Kuwaiti manager earns KWD 4,000. Is PIFSS on the full salary?
The situation
Contributions apply up to a KWD 2,750 monthly ceiling, and the extra 2.5% up to KWD 1,500.
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
Contributions apply up to a KWD 2,750 monthly ceiling, and the extra 2.5% up to KWD 1,500. For KWD 4,000 salary, employer 11.5% x KWD 2,750 = KWD 316.25, not on the full salary. Check ceilings each year.
What to do
- Apply ceiling.
- Compute shares.
- Pay.
- Check yearly.
We can do this for youPIFSS contributions for Kuwaiti staff and end-of-service planning for expatriates: KWD 150