Citizens of the State of Kuwait
The subject of the system
The provisions of this system are compulsory to the Kuwaiti civilian employees who work to any(non-governmental) department that is covered by the Retirement and Pension Law of Qatar, as of 01/01/2007 or from the date of work appointment if it is later to this date.
Conditions of submission
- The employee / worker holds Kuwaiti nationality.
- The employee / worker is over (18) years when contributing in the system and not more than (65) years old when registering in the system.
- The employee / worker work to any department that is subjected to the Retirement and Pension Law in Qatar.
- The employee / worker does not receive a pension from Kuwait.
Registration procedures and forms
If the Kuwaiti civilian employee / worker works to any administrative departments, authorities and public corporations in the State and meets conditions referred to in the second clause, the employer compulsory registers him provided that the following documents are attached:
- Registration Form ratified from the employer.
- A copy of the nationality certificate.
- A copy of birth certificate.
- A copy of the citizenship certificate.
- A copy of the work contract that is ratified by the employer.
- A detailed statement of the salary (Contribution Salary) that is ratified by the employer.
These documents are sent by the employer to GRSIA, State of Qatar, which ratifies and sends them to the Public Institution For Social Security, State of Kuwait, and then checked the form and documents in accordance with procedures established by the Public Institution For Social Security, State of Kuwait, which notifies GRSIA, State of Qatar whether the employee / worker is subjected or not and the related reasons. Subsequently, the employer is notifies by the GRSIA, State of Qatar, of the employee’s / worker’s subjection and the account number the Public Institution For Social Security, State of Kuwait, in the State of Qatar, to deposit the contributions of the employee and notify the Public Institution For Social Security, State of Kuwait on the attached address. The employer is committed to provide the Authority with the changes that may occur to the contribution salary and the names of new Kuwaiti employees / workers and who end their services.
The Public Institution for Social Security, State of Kuwait has opened the account number (0012-777778-301) Qatar Ahli Bank. Notification of GRSIA in the State of Qatar, to prove the subjection of the Kuwaiti employee/ worker to the Standard System to Extend the Social Insurance Protection, must be provided for the Kuwaiti employees’ contribution deposit.
Contribution Salary
The contribution salary is the full payment to the contributor of the basic salary plus the all of allowances, provided that the contribution salary is not more than (2500 Kuwaiti Dinar) and not less than (230 Kuwaiti Dinar).
The maximum contribution salary was rose to (2750 Kuwaiti Dinar) per month, by the law of social insurance law in as of 01/04/2011. The contributions due for the citizens of the State of Kuwait are calculated as follows:
- For the employee / worker whose wage exceeds (2500 KD) in 01/01/2011, the contributions shall be calculated as of 01/04/2011, on the basis of wage in 01/01/2011, regarding the preceding limit. In the event of not exceeding (2500 KD) in 01/01/2011, the contributions will be calculated on the basis of wage in 01/01/2011, until 31/12/2011. They are calculated on the basis wage in 01/01/2012, of the maximum of (2750 KD).
- For the employee / worker who is appointed as of 01/04/2011, contributions shall be calculated regarding the new maximum limit of (2750 KD).
Contribution Rates
The employer’s share is (10%) of the contribution salary, and the share of employee / worker is (7%) of the contribution salary, from 01/01/2007 to 31/07/2007. The employee’s/ worker’s share is modified to (8%) as of 01/08/2007, until 30/07/2010, then to (8.5%) as of 01/08/2010 until the current date.
Contribution is calculated for the whole month of the employee’s/ worker’s appointment. It is not deserved for any part month in which the service is terminated, unless the termination is on the last day of the month. Then, the contributions are due for the whole month.
The wage modification is on the first of January of each year.
Contribution Suspension and Termination
Contribution may stop if the any of the conditions of the system submission in clause 3, is missed. Contributing ends at the end of the service. The employer must notify the General Retirement and Social Insurance Authority, in State of Qatar, of that using the approved forms. It will send the form after ratification to the Public Institution for Social Security, State of Kuwait.
Example: (1)
A Kuwaiti employee works in Qatar Airways, in State of Qatar. His basic salary is (10000) Riyals, housing allowance is (5000) Riyals and transportation allowance is (1000) Riyals and the phone allowance is (1000) Riyals per month. The date of work commencement was 01/01/2011. How the due contributions are calculated for this month?
Salary subject to the contribution is:
Contribution Salary = 10000 Riyals of the basic salary +5000 Riyals of the housing allowance+ 1000Riyals of the phone allowance+ 1000 Riyals of the transportation allowance.
Contributions of (18.5%) of the salary that is divided between the employer and the employee:
Basic salary:
The employer's share = (10000 Riyals) × (10%) = 1000 Riyals.
Employee’s share = (10000 Riyals) × (8.5%) = 850 Riyals.
Allowances=5000+ 1000+1000=7000Riyals
Employee’s share = (7000Riyals) × (18.5%) = 1295 Riyals.
The employee bears his share of the basic salary, plus his share and the share of the employer of the allowances due to these allowances are not subjected to the contribution in the retirement and pensions law, in the State of Qatar. Then, the employee bears the payment of contributions due for the allowances in full (his share and the employer share).
Total contributions (18.5%):
1000 + 850 + 1295 = 3145 Riyals, the employer is committed to deposit it in the account of the Public Institution for Social Security, State of Kuwait, in the State of Qatar, not later than the fifth day of the month following the month of the due contributions.
Example: (2)
A Kuwaiti employee works in Qatar Navigation, in State of Qatar. His basic salary is (10000) Riyals, housing allowance is (5000) Riyals and transportation allowance is (1000) Riyals and the phone allowance is (1000) Riyals per month. The date of work commencement was 21/01/2011. How the due contributions are calculated for this month?
Salary subject to the contribution is:
Contribution Salary = 10000 Riyals of the basic salary +5000 Riyals of the housing allowance+ 1000Riyals of the phone allowance+ 1000 Riyals of the transportation allowance.
Contributions of (18.5%) of the salary that is divided between the employer and the employee:
Basic salary:
The contributions are calculated for 10 working days only.
- The employer’s share of the basic salary from 21/01/2011 to 30/01/2011
The employer's share = (10000 Riyals) × (10%) ×(10 ÷ 30) = 333.33 Riyals.
- The employee’s share of the basic salary from 21/01/2011 to 30/01/2011
- Employee’s share = (10000 Riyals) × (8.5%) ×(10 ÷ 30) = 283.33 Riyals.
- The employee’s share of the allowances from 21/01/2011 to 30/01/2011
The employee’s share =(7000)×(18.5%) × (10 ÷ 30) =431.67Riyals
- The employee’s share of the basic salary and the allowances from 21/01/2011 to 30/01/2011
The employee’s share= (17000 Riyals)× (18.5%) × (20 ÷ 30) =2096.67 Riyals
Employee’s share = (a+ b+ c) =283.33+ 431.67+2096.67= 2811.67
Employer’s share= 333.33
Total contributions due= 2811.67+333.33=3145 Riyals
Example: (3)
How to calculate the monthly contributions: A Kuwaiti employee works in Qatar Navigation, in State of Qatar. His basic salary is (10000) Riyals, housing allowance is (5000) Riyals and transportation allowance is (1000) Riyals and the phone allowance is (1000) Riyals per month. The End of Service date was 20/02/2011. How the due contributions are calculated for this month? In this case, no contributions are calculated for February 2011, because the end of service date is before the last day of the month.
