---
name: kw-payroll-social
description: "Source-cited draft: payroll & social contributions for Kuwait (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/kw-payroll-social"
  jurisdiction: "KW"
  tax_year: "2025"
  last_updated: "2026-07-13"
  review_status: "pending_review"
---

# Kuwait Payroll & Social Contributions

## Payroll and social security (PIFSS)

- **General overview** — There is no payroll income tax (PAYE) in Kuwait. Social insurance applies only to Kuwaiti nationals (and, by bilateral arrangement, some GCC nationals) through the Public Institution for Social Security (PIFSS). Non-GCC expatriate employees are exempt from social security contributions.
- **Payroll income tax (PAYE)** — None — Kuwait does not withhold income tax on salaries  _(Kuwait Income Tax Decree No. 3 of 1955 (https://taxsummaries.pwc.com/kuwait/individual/other-taxes))_
- **Employer social security contribution** — 11.5% of monthly salary (Kuwaiti national employees) percent  _(Social Security Law No. 61 of 1976 (https://taxsummaries.pwc.com/kuwait/individual/other-taxes))_
- **Employee basic social security contribution** — 8% of monthly salary (Kuwaiti national employees) percent  _(Social Security Law No. 61 of 1976 (https://taxsummaries.pwc.com/kuwait/individual/other-taxes))_
- **Additional employee contribution** — 2.5% of monthly earnings (supplementary pension contribution since 2015), bringing total employee contribution to 10.5% percent  _(Social Security Law No. 61 of 1976 (as amended) (https://taxsummaries.pwc.com/kuwait/individual/other-taxes))_
- **Monthly contributory salary ceiling** — KWD 2,750 per month ((approx — confirm current ceiling)) KWD  _(Social Security Law No. 61 of 1976 (https://taxsummaries.pwc.com/kuwait/individual/other-taxes))_
- **Expatriate (non-GCC) employees** — Exempt from PIFSS social security contributions; employers instead owe end-of-service indemnity under the Labour Law  _(Social Security Law No. 61 of 1976; Private Sector Labour Law No. 6 of 2010 (https://taxsummaries.pwc.com/kuwait/individual/other-taxes))_
- **GCC-national employees** — Covered under their home-state social insurance via the GCC unified extension of insurance protection; contributions calculated per the home-state scheme  _(GCC Unified Law for Extending Insurance Protection (https://taxsummaries.pwc.com/kuwait/individual/other-taxes))_
- **Contribution remittance deadline** — Monthly — by the 15th day of the month following the payroll month  _(Social Security Law No. 61 of 1976 (https://taxsummaries.pwc.com/kuwait/individual/other-taxes))_
- **End-of-service indemnity (gratuity)** — 15 days' wage per year for the first 5 years, then 1 month's wage per year thereafter (private sector) ((approx — confirm calculation caps))  _(Private Sector Labour Law No. 6 of 2010)_

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> **General reference only.** This document does not constitute tax, legal, or
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> licensed professional before relying on them.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `kw-payroll-social` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/kw-payroll-social. If neither is available, confirm every figure against the official source pages cited above before relying on it.