Kuwaiti Workers

Guide to the Provisions of Insurance Protection Extension to Kuwaiti Citizens Working in GCC Member States

In implementation of the provisions of the Unified Law of Insurance Protection Extension to GCC Member State Citizens Working in other GCC Member States, and according to the provisions of legislation No. (44) dated 2007 extending insurance protection to GCC Member State citizens working in other GCC Member States, the Kuwaiti employee working in other GCC Member States shall be subject to the provisions of legislation No. (11) dated 1988 stipulating the coverage of workers abroad under the Social Insurance Scheme. The Kuwaiti employee shall be subject to the provisions of Social Insurance legislation No. (61) dated 1976, legislation No. (128) dated 1992 regarding supplementary insurance, and legislation No. (25) dated 2001 amending some provisions of the Social Insurance Law and increasing pensions. These provisions shall be effective from 01/01/2006, except for Kuwaiti employee working in the state of Qatar where the provisions shall be effective from 01/01/2007. However, such provisions are applied unless otherwise is provided for in the Unified Law, provided that they do not contradict its provisions in accordance with the following rules and conditions:

First: Scope of Application

The provisions of the Unified Law of Insurance Protection Extension shall compulsorily be applied to Kuwaiti citizens working in other GCC Member States with an employer subject to social insurance/civil retirement law in the work location state, provided that the work in administrative bodies or public authorities or organizations of the work location state shall be subject to the laws or regulations of civil service, or the laws or regulations of labor of these States.

Second: Terms of Application

a)    The worker/employee shall be a Kuwaiti citizen.
b)    The employer shall be subject to social insurance/civil retirement law of the work location state.
c)    The employee shall be working in a government agency or public authority or organization in the work location state that is subject to laws or regulations of the civil service, or subject to the laws or regulations of labor in these States.
d)    The worker shall neither be less than 18 years of age nor over 65 at the time of his registration with the scheme.

Third: Registration Procedures and Forms

A.    When a Kuwaiti citizen works for an employer in one of the GCC Member States in accordance with the provisions referred to in Second, he shall compulsorily be registered in accordance with the provisions of this law. The employer shall immediately register the employee in accordance with the rules and procedures applicable in the work location state and in accordance with the documents specified for this purpose.
B.    The employer shall provide the social insurance/civil retirement agency of the work location state with a detailed statement on salaries of Kuwaiti insured persons working for him as of 01/01/2006 or the date of employment following this date. The detailed statement shall include changes to salary until January 1st of each year. The statement shall then be submitted to the Public Institution for Social Security of the State of Kuwait.
C.    Required Documents for Registration:
The employer shall provide the registration form, attaching the following documents:
1.    Copy of nationality certificate, birth certificate and civil ID card.
2.    Copy of the appointment decision or employment contract.
3.    Detailed statement of salary in both public and private sectors, if available.

Fourth: Contributory Wage

A.    The salary shall include the basic salary plus allowances, bonuses or periodical grants in accordance with the provisions of legislation No. (38) dated 1964, provided that the contributory wage shall neither exceed KD 2,750 nor be less than KD 230.
B.    Contributions for the month of entry into employment shall be collected on the basis of a complete month, but no contributions shall be collected for any part of the month in which the employment is terminated. If the service of the insured person was terminated in the last day of the month, the contributions shall be collected for the whole month.
C.    The employer shall provide the social insurance/civil retirement agency of the work location state with a salary statement of workers with him as of January of each year. Changes to salaries during the year shall not be considered, and the contributions shall be computed on the basis of the salary in January or the date of employment following this month until January. The social insurance/civil retirement agency shall submit the said statement to the Public Institution for Social Security of the State of Kuwait.

Fifth: Contribution Rates

1.    As of 01/01/2006 to 31/07/2007, the monthly contribution rate shall be 17% of the contributory wage, paid as follows:
A.    The employer shall pay a monthly contribution rate of 11% of the contributory wage (or the rate applicable in the work location state, if it is less than the specified one).
B.    The insured person shall pay a monthly contribution rate of 6% of his contributory wage (plus the difference in employer share, if any).
Accordingly, the monthly contribution rate for this period shall be as follows:

Work Location State	Share of Kuwaiti Insured Person	Share of Employer
Kingdom of Saudi Arabia General Organization for Social Insurance	8%	9%
United Arab Emirates General Pensions and Social Security Authority	6%	11%
Kingdom of Bahrain Social Insurance Organization	10% as of 01/05/2007 8%	7% 9%
State of Qatar General Retirement and Pension Authority	7%	11%
Sultanate of Oman Public Authority for Social Insurance	7%	10%

2.    As of 01/08/2007, the monthly contribution rate shall be 18% of the contributory wage, paid as follows:
A.    The employer shall pay a monthly contribution rate of 11% of the contributory wage (or the rate applicable in the work location state, if it is less than the specified one).
B.    The insured person shall pay a monthly contribution rate of 7% of his contributory wage (plus the difference in the employer share, if any).
Accordingly, the monthly contribution rate for this period shall be as follows:

Work Location State	Share of Kuwaiti Insured Person	Share of Employer
Kingdom of Saudi Arabia General Organization for Social Insurance	9%	9%
United Arab Emirates General Pensions and Social Security Authority	7%	11%
Kingdom of Bahrain Social Insurance Organization	9%	9%
State of Qatar General Retirement and Pension Authority	8%	10%
Sultanate of Oman Public Authority for Social Insurance	8.5%	9.5%

The share of Kuwaiti insured person referred to in the tables above is computed on the basis of differences in contribution rates provided for by the civil retirement/social insurance laws and regulations between the work location state and the State of Kuwait. Therefore, the share of Kuwaiti insured person may change if the share of employer changed in the work location state.
C. If there is a difference in the contributory wage provided for in the home of worker/employee and the work location state, the insured person shall pay such difference.
D. As of 01/08/2010, the monthly contribution rate paid by the insured person shall increase by 0.5%.

Sixth: Dates of Contribution Payment

The monthly contributions shall be paid by employers in GCC Member States, according to the dates of contribution payment specified in the civil retirement/social insurance scheme/law of the work location state.

Seventh: Method of Contribution Payment

The employer shall deduct the monthly contributions and any other due amounts from the salary of the insured person in addition to the employer share. Such amounts shall be deposited in the bank account of the Public Institution for Social Security of the State of Kuwait specified in the work location state in accordance with the bank account number below. A monthly statement shall be submitted, including the names of the insured persons, the date of payment and the paid amount of contributions.

State	Bank	Account Number
Kingdom of Saudi Arabia	National Commercial Bank	062511404000101
United Arab Emirates	Abu Dhabi National Bank	6200114839
Kingdom of Bahrain	Ahli United Bank	0016-542245-001
State of Qatar	Ahli Bank	12-777778-301
Sultanate of Oman	Alahli Bank	3101-200085-001

Eighth: Applied Penalties

If the employer fails to pay due contributions on time lawfully determined; to register all or some of Kuwaiti employees/workers; to report the termination of their services; or to pay contributions based on real wages, he shall be subject to the penalties set forth in the social insurance/civil retirement law of the work location state. The amounts raised as a result of such penalties shall be deposited in the bank account of the Public Institution for Social Security referred to in Seventh.

If the employer or worker fails to apply the provisions of the Law, he shall be subject to the provisions of the law of the work location state. The amounts raised as a result of such penalties shall be a right of the work location state.

Ninth: Discontinuing or Terminating Membership

The membership of the insured person shall be discontinued, if:

A. the insured person fails to meet one of the two provisions stipulated in (b and c) of Second.

B. the insured person is granted a leave without pay, regardless of its duration. The employer shall notify the social insurance/civil retirement agency of the work location state about such case. In turn, the social insurance/civil retirement agency shall notify the Public Institution for Social Security of the State of Kuwait.

C. the work relation is terminated for any reason (e.g. resignation, dismissal, death etc). The employer shall notify the social insurance/civil retirement agency of the work location state about such termination or discontinuation, using the specified form within the period determined by the law of the work location state. The membership is also terminated if the Kuwaiti nationality is withdrawn from the insured person.

Tenth: Procedures for Cases of Disability, Disease, Loss or Death

If the worker/employee suffers disability or disease, or dies, the employer shall notify the social insurance/civil retirement agency of the work location state about such cases. The social insurance/civil retirement agency shall in turn complete the required medical reports and certificates that prove disability, disease or death. Then, the agency shall send such reports and certificates to the Public Institution for Social Security of the State of Kuwait in order to be presented to the appropriate Medical Board to settle the entitlements of employee/worker in accordance with the procedures provided for in the Social Insurance Law of the State of Kuwait.

Eleventh: Contacts

GCC Insurance Department

Public Institution for Social Security

Phone: (+965) 2994666

Fax: (+965) 2995842

www.pifss.gov.kw

E-mail: GCCID@pifss.gov.kw

Kuwaiti Workers

Guide to the Provisions of Insurance Protection Extension to Kuwaiti Citizens Working in GCC Member States

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