PIFSS Guide2015

State of Kuwait

This Guide...Contains a summary of Social Insurance Law of the State of Kuwait and its amendments.

We hope that this issue will contribute to the enhancement of social insurance awareness within the

community.

With the compliments of

Public Relations & Information Department

The Public Institution for Social Security

KUWAIT 2015

Historical Background• Kuwaitbeganapensionschemeon1/1/1955,withintheframeworkofcivilemployeesystemandretirement

inthepublicsector.ThefirstindependentlawforpensionswasissuedinLawDecreeNo.(3)of1960,which

becameeffectiveasof1/4/1960.Thiscoveredgovernmentemployees,civilandmilitary,andwasfollowedby

anindependent lawforpensionsandindemnitiesforthemilitary, inaccordancewithLawNo.(27)of1961,

whichcameintoforceon9/9/1961.

• Noneoftheabovelawsconstitutedanintegratedsystemofsocialsecurity.Eachofthemdealtwithalimited

aspectandcoveredcertainsectorsofpermanentgovernmentemployeesandthemilitary.

• Thefirstintegratedlawforsocialsecuritywasissuedon1/10/1976,inaccordancewiththeAmiriLawDecree

No. (61)of1976,according towhichThePublic Institution forSocialSecuritywasestablished inorder to

implementthesystemitpromulgated,whichcoversthefollowing:

- Old-age,disability,sicknessanddeathinsuranceofciviliansemployedinthepublicsectoraswellasinthe

privateandoilsectors.

- Old-age,disability,sicknessanddeathinsuranceofselfemployedandthelike.

- Workinjuryinsurance.

• Theapplicationofinsuranceagainstold-age,disability,sicknessanddeathofcivilianemployedinsurancein

thepublicsectoraswellasintheprivateandoilsectorscameintoforceas1/10/1977.Theimplementation

ofinsuranceoftheunemployedaswellasworkinjurywaspostponeduntiltheInstitutionmadethenecessary

arrangementsfortheirimplementation.

• On1/3/1981,old-age,disability,sicknessanddeathinsurancewasappliedtotheselfemployedoranyothers

inthatcategory.Suchinsurancewasoptionalforaperiodoffiveyearsfromthatdate,butitbecamecompulsory

asof1/3/1986.

• On29/10/1980,lawNo.(69)of1980,regardingmilitarypensionwhichcoversthearmedforces,thepolice

andthevolunteernationalguardwasissued.Thiswentintoeffectasof1/3/1981.ThePublicInstitutionfor

SocialSecuritywasentrustedwiththeapplicationofthislaw.Inthiswayitbecametheunifiedauthorityforthe

applicationofsocialsecurityinKuwait.

• ApplicationoftheinsuranceagainstworkinjurystipulatedintheSocialSecuritylawisstillpending;however,all

formsofmedicalcareareguaranteedforallKuwaitisfreeofcharge.

• LawNo.(11)of1988extendingtheoptionalapplicationofthesocialsecuritysystemforKuwaitisworkingfor

anemployernotcoveredbythesocialsecuritylawinKuwaitorabroadwasissuedandbecameeffectiveasof

1/10/1988.

• LawNo.(128)of1992hasbeenpromulgatedorganizingthesupplementaryinsuranceandwasimplemented

effective as of 1/1/1995, considering the aforementioned insurance systems – civil ormilitary – has basic

systemscomplementedbythesupplementarysystemcoveringtheelementsofthesalaryexcludedfromthe

salaryconceptinthebasicinsuranceandforwhichapensionisdecidedandcalculatedunderspecialrules

andaddedtotheretirementpensionandformsapartthereof.

• LawNo.(25)of2001hasbeenissuedunderwhichaRetirementPensionPeriodicIncreaseFundisestablished

for thosetreatedunderSocialSecurityLawProvisions,RetirementPensionsandRemunerationsofMilitary

StaffLawandLawNo.(11)of1988.

• In7/1/2001,LawNo.(44)of2007hasbeenissuedregardingExtensionofInsuranceProtectiontotheCitizens

oftheGulfCooperationCouncilCountries(GCC)workingincountriesotherthantheirhomecountrieswithin

anyGCCcountryandtheLawhasbeeneffectivefrom1/1/2006.(ForCiviliansonly)

• In14/4/2013,LawNo.(101)of2013hasbeenissuedregardingUnemploymentInsuranceandtheLawhas

beeneffectiveasof1/5/2013(foremployeesintheprivateortheoilsectorsonly).

• In10/8/2014,LawNo.(110)of2014hasbeenissuedindeterminingafinancialremunerationforthesubjectsof

socialsecuritylawandRetirementPensionsandRemunerationsofMilitarystafflawupontheendofcontribution

andhasbeeneffectivefrom1/1/2015.

Insured Persons• ThesocialsecuritysystemcurrentlyinforceinKuwaitcoversallcitizenswhoareactivewithinthecommunity

regardlessoftheiroccupation.

• The system also covers the employeesworking for third parties in any sector and it covers the National

Assemblymembers,MunicipalCouncilmembers,mayorsandtraineesforworksponsorsaswellastheself

employee such asmerchants, and free-lancers such as physicians, engineers, lawyers, shopkeepers and

Kuwaitisworkingabroad,andthosewhopracticeotherprofessionswhichareofficiallylicensedbycompetent

authorities.

Social Security System Resources• Kuwait’s social security system is mainly financed by contributions paid by three parties i.e.: the insured

persons,theemployersandtheStatePublicTreasury.

• Theinsuredpersonwhoworksforathirdparty-employer,whetherheisacivilianoramilitarystaff,heshallbear

apartofrelevantcontributionofthebasicinsuranceequivalentto(5%)ofhismonthlysalarywhichissubject

tothesocialsecuritysystemi.e.asforthegovernmentemployees,itmeanstherelevantsalaryplusthesocial

allowance,includingthechildrenallowance.Asforthosewhoworkintheprivateandoilsectors,theinsured

personreceivesforhisworkaminimumof(KD230)permonthandthemaximumsalaryinallsectorsof(KD

1500)permonth.Heshallalsobearhispartofthesupplementaryinsuranceintheamountofthementioned

rateofthesupplementarysalaryinamaximumof(KD1250)monthly.

• Aself–employedinsuredperson(whoworksforhisownaccounts)shallbearapartoftherelevantcontribution

in thebasic insurancebetween (5%)and (15%)pursuant to the income-bracketselectedbyhim from the

scheduleofthesaidbracketwhichvariesbetween(KD200)and(KD1500)withdifferenceof(KD50)between

eachbracketandtheother.

• Employersshallbearashare inthecontributions inthebasicandsupplementary insuranceforhisworkers

whichisequivalentto(10%)ofthesalaryoftheinsuredperson.

• IncrementPensionFundcontributionsshallbeaddedtothepreviouscontributionsiscalculatedonthebasis

oftotalofbasicandsupplementarysalaryandcurrentlyintheamountof(1%)fortheemployerand(2.5%)for

theinsuredpersonorthebeneficiary.

• Unemployment InsuranceFundcontributionsshallbeaddedtothepreviouscontributions intheamountof

(0.5%)foreachoftheemployerandtheinsuredpersonintheprivateandoilsectorsasof1/5/2013.

• FinancialremunerationFundcontributionsshallbeaddedtothepreviouscontributionsforthesubjectstoits

provisionsintheamountof(2.5%)fromthebasicsalaryinamaximumlimitof(KD1500)monthlyorincome

bracketandshallbebornebytheinsuredperson.

• TheStatePublicTreasuryshallpay(10%)oftheirsalariesoftheinsuredcivilians,and(32.5%)ofthesalariesof

themilitarypersonnel.Asfortheselfemployedandthelike,itshallbearthedifferencebetween(25%)ofthe

contributionbracket,andtheinsuredperson’sshare.

• TheStatePublicTreasuryshallpayanannualcontributionwhichiscurrentlyamountsto(2.5%)fortheIncrement

PensionFund.

• The State Public Treasury shall pay (0.5%) of the total of their basic and supplementary salaries of the

employeesintheprivatesectorortheoilsectorinfavorfortheUnemploymentInsuranceFund.

• ThestatePublictreasuryshallpayamonthlycontributionamountingto(5%)fromthesalaryandthemonthly

incomebracketsinfavorforthefinancialremunerationfund.

• Atthesametime,thePublicTreasuryshallpaythedeficitintheinstitution’sfundsinthelightoftheresultsof

theexaminationofitsfinancialpositionwhichtakesplaceonceatlasteverythreeyears.

Characteristics of the Social Security System ThesocialsecuritysysteminKuwaithasanumberofcharacteristics,themostprominentofwhichare:

First: Comprehensive and Integration Thismeansthatthesystemcoversallproductivesectorsinsociety,andthattheyenjoythesamerightsand

benefits.

Second: Benefits & Efficiency1. Retirement Pension:

• ThesocialsecuritysystemintheStateofKuwaitischaracterizedbycomprehensiveness,unityandconsiderable

securitybenefits.Moreover,theretirementpensionisconsideredthemostprominentrightsecuredbytheSocial

SecurityLawinrespectoftheinsuredpersons,andwemayproceedfurthertostatethattheretirementpension

constitutesthemainobjectivewhichthesocialsecurityaimsat.

- Incaseofold-age,theinsuredpersonshallbeentitledtoretirementpensionwhichcanreachtoaminimumof:

• (65%)ofthelastsalarywitha(15years)–contributionperiod(15years)whichshallberaisedto(75%)regarding

militarystaff.

• Intheeventofdeath,totaldisabilityordisabilitydeprivingtheinabilitytoearn,thebeneficiaryshallbeentitledto

aretirementpensionwhichmayreach(95%)oftherelevantsalarywithoutstipulatinganycontributionperiod,

andshallberaisedupto(100%)withregardtomilitarystaff.

• Asforthemaximumpension,itshallreachupto(95%)oftherelevantsalary,withathirtyyearcontributionperiod

(30years)whichshallberaisedupto(100%)with(27.5)serviceyearsinrespectofthemilitarystaff.

• Asforthemarriedwoman,divorcedorawidow,ifanyofthemhaschildren,sheshallbeentitledtoaretirement

pensionafter(15years)ofservice,ifshereachestheagespecifiedinthetable(7/a)oftheLaw61/1976,asfor

thewomanwithoutchildren,shemaybeentitledtoaretirementpensionafter15yearsifthemarriagelastedfor

2yearsbeforeserviceterminationdatetakingintoaccounttheagespecifiedinthetablereferredto.

2. Sickness Pension:

Itshallbecalculatedonthebasisof(15years),i.e.(65%)oftherelevantsalary.Butifthesicknesshasresulted

inaninabilitytoearn,thenthesaidpercentagemayreach(95%).

3. Retirement Allowance:

Itisafinancialallowance,payablebyinstallmentsattheendofservicebutwithoutbeingentitledtoaretirement

pension.

4. Death Gratuity:

Itispayableintheeventoftheinsuredorpensioner’sdeath,whichequalstwicethesalaryamount.

5. Family Pension:

Intheeventoftheinsuredperson’sorpensioner’sdeath,theretirementpensionshallbedistributedamongthe

beneficiariesofhisfamilywhosatisfycertainconditions.

6. Commutation:

Apensioner’sright-orinsuredperson.Ifhehassecuredaperiodqualifyingforentitlementofapension,hemay

commuteapartofretirementpension(Onequarter1/4)inaformofalumpsumamount.

7. Unemployment Compensation:

Acompensationamountingto(60%)ofthesalarywhichiscalculatedonthebasisofthebasicpensionshallbe

paidfortheinsuredwhoisapplicablewiththeprovisionsoftheUnemploymentInsuranceLaw,inadditionto

thepresumptivesupplementarypension,andshallbeaddedtothetotalincrementthatdoesnotfallwithinthe

SocialSecuritySystem(costoflivingallowance–financialsupport–specialremunerations)andtheperiodofthe

disbursementofthecompensationis6months.

8. Financial Remuneration:

Theinsuredpersons,inallsectors(civilandmilitary),aswellaspractitionersbypermitorauthorizationfromthe

competentauthoritiesasemployers,craftsmenandfreelancers,whoaresubjecttotheprovisionsof lawNo.

(110)of2014areentitledtoafinancialremunerationuponthecontributionendforeachyearofthecontribution

years inamaximum limit (18)years.Thedisbursmentof theremuneration is fromthedateof theretirement

pensionentitlementandincaseofdeath,itshallbedisbursedtothelegalheirs.

Third: Flexibility of the System• Thesocialsecuritysystemsets the rulesand regulations thatgovern thebasic rights inpensionorgratuity.

Meanwhile,detailsinthisregardarelefttobespecifiedbyministerialordersissuedwiththeapprovalofInstitution’s

BoardofDirectors.Thisprotectsthelawfromchangesthattakeplaceoccasionallyandhelpcopeflexiblywith

therapidgrowthofthesociety.

• Someofthecasesdealtbyministerialordersarethespecificationofthecasesinwhichpensionallowanceis

issuedandtheconditionofconjoiningtheperiods forwhichanallowancedisbursementwasmadeorother

periods,specificationoftheminimumshareinthepensionforbeneficiariesandtheregulationsofcombiningthe

pensionandsalaryandtheconditionsandthecaseswhereapartofthepensionisconvertedintoalump-sum.

The Institution’s Administrative Organization- ThePublicInstitutionforSocialSecurityisapublicinstitutionwhichhasanindependentbudgetandhasabody

corporate.ItissubjectedtothesupervisionoftheMinisterofFinance.

- TheInstitutionhasaBoardofDirectors,chairedbytheMinisterofFinanceandthemembershipofthefollowing:

• TheInstitution’sDirectorGeneral.

• ArepresentativefromtheMinistryofSocialAffairsandLabour,MinistryofDefence,CivilServiceCommission,

TheMinistryofInterior,TheChamberofCommerceandIndustry,TheTradeUnionFederation.

• Andthreeexperiencedandspecializedmembers.

- TheInstitution’sBoardofDirectorsisempoweredtodrawupitsgeneralpolicyincludingthefollowing:

• Approvalofthedraftbudgetanfinalannualbalancesheetbeforetheyaresubmittedtothecompetentauthorities.

• ApprovaloftheannualreportontheInstitution’soperations.

• Proposinglaws,regulationsandordersconcerningsocialsecurity,andadvisingondraftrelatedthereto.

• IssuingtheordersnecessaryforregulatingtheInstitution’sfinancialandadministrativeaffairsanddetermining

staffsalariesandrulesrelatedtotheiremploymentaffairs.

- TheInstitutionismanagedbyaDirectorGeneralwhohasmorethanoneDeputy.TheDirectorGeneralrepresents

theInstitutioninitsrelationswithothersandinthecourtsoflaw.Heisresponsibleforexecutingthepolicydrawn

upbytheBoardofDirectorsandthespecificationoftheInstitution’sdepartmentsandtheirrespectivefunctions.

- AninvestmentcommitteeissetupbyanorderpassedbytheMinisterofFinancetoinvesttheinstitution’sfunds.

It isempowered todefine the rulesand the investmentprogrammesand to issue thenecessary investment

orders.ThiscommitteepresentlycomprisesoftheMinisterofFinanceasitsChairmanandmembershipofthe

DirectorGeneralandtwoBoardmembers.

- WorksattheInstitutionareimplementedthroughfivemainsectorswhichare:

• Generaladministrationsector.

• Insurancesectorincludinginsuranceservicestaff.

• Investmentsector.

• Financial&administrativesector.

• InformationandTechnologysector.

REGISTRATION WITH THE PUBLIC INSTITUTION FOR SOCIAL SECURITY AND

EMPLOYER’S OBLIGATIONS

REGISTRATION

WHO IS THE EMPLOYER?Employer is every natural person or body corporate, whether Kuwaiti or non-Kuwaiti, who employs Kuwaiti

employeesandtakestheworkheexercisesashiscraftorprofession.

Thisdefinitionshallincludethefollowingentities:

1.Stateministries,governmentalauthoritiesanddepartments.

2.Publicauthoritiesandinstitutions.

3.Alltypesofcompanies.

4.Individualestablishments.

5.Clubsandpublicinterestsocieties.

6.Co-operativesocietiesandprivatesocieties.

7.The international and regional organizations having their offices in Kuwait but the attached protocols to their

foundationagreementsortheKuwaitiLawsdonotprovidefortheirexemptionfromthelocalsocialsecuritysystems.

Who is the Insured?• The insured inChapter Threeof theLaw is everyKuwaitiwhoworks for anemployer, themembersof the

NationalAssembly,themembersoftheMunicipalCouncilandmayors.Also,thistermshall includeatrainee

whosecontractcomprisesacertainprovisionthatobligeshimortheemployertoworkforhimifhesuccessfully

passedtheprescribedtraining.

• TheinsuredpersonsinChapterFivearetheKuwaitiswhoareself-employedandthelike.

• TheinsuredpersonintheUnemploymentInsuranceiseveryKuwaitiworkingintheprivateortheoilsectorsand

notexceeding60yearsofage.

Employer’s ObligationsTheSocialSecuritySystemrequirestheemployertodothefollowing:-

1. ProvidestheregistrationformsoftheKuwaitiemployeeswhoareworkingforhimwithintendaysasfromthe

dateofjoiningthework,dulyaccompaniedwiththefollowingdocuments:-

a)Copyofnationalitycertificate.

b)Copyofbirthcertificateorageassessmentcertificate.

c)Copyoftheemploymentcertificate,forgovernmentalauthorities.

d)CopyofCivilIdentityCard.

2.Providingthefollowingdocumentsupontheendofservice:-

a)Theendofservicenoticeonthespeciallypreparedformforthispurpose,whichshallbesubmittedtothePublic

InstitutionforSocialSecuritywithintendaysfromtheendofservice.

b)Copyofserviceterminationcertificate,forgovernmentalauthorities.

3.Heshallpaytheshareoftheinsuredormilitarystaffbeneficiarybesidestheemployershareinthecontribution

atthebeginningofthenextmonthfollowingthemonthagainstwhichthecontributionisdue,aswillappearlater

intheprovisionsofdueandpaymentofcontributions,inadditiontothepaymentofotherdueamountsandhe

shallkeepacopyofthepaymentprovingdocuments.

4.TheemployerattheoilandprivatesectorsshallprovidethePublicInstitutionforSocialSecuritywithadetailed

statementontheinsuredpersonsandtheirsalaries inthemonthofJanuaryeveryyear inthepreparedform

forthispurpose.Also,heshallestablishwithhimaseparatefileforsocialsecurity(employerfile)inwhichthe

followingdocumentsshallbekept:-

a)Acopyoftheformconcerningtheemployerregistrationapplication.

b)Copyoftheabovedetailedstatement.

c)MaintainingthestatementofaccountsentregularlybythePublicInstitutionforSocialSecurity.

d)Copyoftheformrelatingtothepaymentofsocialsecuritycontributionsandprivatepremiums.

e)Copyofthestatementofthecommutationpremiumsdeductedfromtheinsured.

f) CopyofthereceiptvouchershowingthereceiptofthepaidpremiumstothePIFSS.

5.Theemployeratthepublic,oilandprivatesectorsshallprepareaspecialfileforsocialsecurityforeveryinsured

ormilitarybeneficiary,wherethefollowingdocumentsshallbekept:-

a)Theappointmentdecisionfortheinsuredpersoninthepublicsectorandthedecreeconcerningtheappointment

ofthebeneficiaryofficersortheissueddecisionontheappointmentoracceptanceofthevoluntaryservicefor

otherbeneficiaries.

b)Acopyoftheregistrationapplicationofaninsuredorbeneficiarywhowasnotpreviouslyregisteredoracopyof

aworkjoiningnoticeofanalreadyregisteredinsuredorbeneficiary.

c)Copyofbirth&nationalitycertificate.

d)Astatementontheinsuredormilitarybeneficiarygradedsalaryduringtheyearsofservice.

e)A statement on the periods of service of the insured ormilitary beneficiarywhich are not calculated in the

insurance.

f) Copy of thePublic Institution for Social Security notification of the due commutation premiums against the

insuredormilitarybeneficiaryincaseofceasingthepaymentofretirementpension.

g)Theresolutionordecreeissuedontheterminationoftheinsuredormilitarybeneficiaryservice,forthepublic

sectoraswellasacopyoftheformconcerningtheinsuredorbeneficiaryserviceterminationnoticeatallsectors.

h)Astatementonthegrantedperiodstotheinsuredormilitarybeneficiaryassickleave,thesalarypaidagainst

whichandthespentleaveswithoutpay.

i) Copyof theexchangedcorrespondencebetweentheemployerand thePublic Institution forSocialSecurity

regardingtheinsuredormilitarybeneficiary.

j) Theexecutive formof therendered judgmentson thealimony in respectofwhich theruled judgment isnot

executedpriortotheendoftheserviceoftheinsuredormilitarybeneficiary.

Important Guidelines First:theinsuredmayregisterhisnamewiththePublicInstitutionforSocialSecurityiftheemployerrefusedor

slackenedtoregisterhimwithintendaysfromhisjoiningtheservice;andtheinformationwhichheprovidesin

theregistrationapplicationshallbedeemedastrueandcorrectandtherelevantcontributionsshallbebasedon

itunlesstheemployerobjectstothosedatawithintendaysasfromthedateofbeingnotifiedoftheregistration

oftheinsured.

Second:Theemployershallasktheinsured,uponjoiningworkwithhim,toprovidetheemployerwithastatement

ontheotherworkswhichheexercisesexplainingthereintheemployer,dateofjoiningandthereceivedsalaryas

wellasprovidingthePublicInstitutionforSocialSecuritywithacopyofthisstatementforidentifyingtheoriginal

employerwhoshallcomplywithregisteringtheinsuredwiththePublicInstitutionforSocialSecurity.

Third: The Public Institution for Social Security hereby requests all employers to provide it with accurate

informationabouttheinsuredpersonsandmilitarybeneficiariestoavoidanyeffectswhichmayariseoutofthe

incorrectinformation.

CONTRIBUTIONS DUE& PAYMENT OF CONTRIBUTIONS

DUECONTRIBUTIONS

Due ContributionsThe social security system depends on self-finance in securing the insurance rights where the contributions

constituteanessentialsourceamongitsotherfinancingsources.Contributionsarecalculatedbasedonthesalaries

receivedbytheinsuredasfollows:

1. Thecontributionsalaryinthebasicinsuranceoftheinsuredpersoninthegovernmentalsectororthebeneficiary

in themilitarysector is the totalof thebasicsalaryandsocialallowance includingchildrenallowance in the

maximumlimitamountingto(KD1500).

2.Thecontributionsalaryinthe(basic)insuranceoftheinsuredintheprivateandoilsectorsrepresentsthetotalof

thewagewhichhegetsincashorinkindasasalaryaccordingtotheprovisionsofthePrivateSectorLabour

Lawinamaximumlimitof(KD1500)andaminimumlimitof(KD230).

3.Thecontributionsalary in thesupplementary insuranceof the insuredperson in thegovernmental sectoror

thebeneficiaryinthemilitarysectorisasumofmorethan(KD1500)andthebasicsalaryincludingallowances,

bonusesandremunerationswhichareconsideredtobeamongthesupplementarysalaryelementsandthatso

inthemaximumlimitof(KD1250).

4.Thecontributionsalaryinthe(supplementary)insuranceoftheinsuredintheprivateandoilsectorsisasumof

morethan(KD1500)ofthemonthlysalaryinamaximumlimitof(KD1250).

5. The contribution salary in the Retirement Pensions Increment Fund represents the total of the basic and

supplementarysalaryinamaximumamountof(KD2750).

6.ThecontributionsalaryfortheUnemploymentInsuranceFundrepresentsthetotalofthebasicandsupplementary

salaryinamaximumamountof(KD2750).

7. Thecontributionsalary for thefinancial remuneration fund isacontributionsalary in thebasic insurance ina

maximumlimitof(KD1500).

8.Theamountpaidtothe insured intheprivateandoilsectorsfromtheNationalManpowerSupportProgram

(thesocialandchildrenallowance)shallbe treated in thesamemethod includingwhat thestateperiodically

disbursesoffinancialbenefitsofthemonthlysalary,andtherelevantcontributionsshallbecalculatedaccording

tothetheprescribedpercentagesbytakingintoaccounttheminimumandmaximumlimitsofthesalary.

9.Thecontributionsalaryfortheappointedinsuredinthegovernmentsectorshallbecalculatedwithanoverall

remunerationoralumpsumsalarybasedontheamountoftheremunerationorsalaryinamannerthatneither

ofbothshallexceed(KD2750)monthly.

Monthly Contributions (Amount and Possible Collection)1.ThemonthlycontributionsdueforthePublicInstitutionforSocialSecurityagainstoldage,disability,sickness

anddeathinsurancefortheinsuredpersonswhoareworkingforthegovernment,privateandoilsectorsshall

becalculatedinthisrespectaswellasforthebeneficiariesfromtheRetirementPensionsandRemunerationsfor

MilitrayStaffLawwhichiscurrentlyapplicable,asperthefollowingmanner:

a) (5%)ofthemonthlysalary(basicandsupplementary)shallbebornebytheinsuredorthemilitarybeneficiary.

b) (10%)ofthemonthlysalary(basicandsupplementary)shallbepaidbytheemployer.

c)(2.5%)ofthemonthlysalary(basicandsupplementary)shallbebornebytheinsuredorthemilitarybeneficiary

intheRetirementPensionsIncrementFund.

d)(1%)ofthemonthlysalary(basicandsupplementary)shallbepaidbytheemployerforincrementpensionfund.

e)(0.5%)ofthemonthlysalary(basicandsupplementary)fortheemployeesintheprivateortheoilsectorsand

shallbepaidbytheinsuredpersonforunemploymentinsurancefund.

f) (0.5%)ofthemonthlysalary(basicandsupplementary)fortheemployeesintheprivateortheoilsectorsand

shallbepaidbytheemployerforunemploymentinsurancefund.

g)TheemployershallpaytheabovetwoportionsandanyotherduepaymentstothePublicInstitutionforSocial

Securitywithintheprescribeddatesinthisregard.

h) (2.5%)ofthebasicsalaryshallbepaidbytheinsuredpersonorthebeneficiaryofthefinancialremuneration

fund,andthesecontributionsaresuspendediftheperiodofthecontributionreached18years.

i) (5%)fromthebasicsalaryispaidbythePublictreasuryforthefinancialremunerationfund.

2.Contributionsinthegovernmentandmilitarysectorsandfullystateownedcompaniesshallbecomputedinfull

forthepartofthemonthinwhichtheservicebeginsorexpiresinaproportionalratetothefullmonthsalary.

3.Contributionsfortheprivateandoilsectors,exceptthefullystateownedcompanies,shallbecalculatedbased

ontheinsuredsalaryatthebeginningofJanuaryeveryyear.Ifthejoiningoftheworktakesplaceafterthisdate,

thenitshallbecalculatedbasedonthesalaryasattheduedateuntilthebeginningofthenextfirstofJanuary.

4.Ifthesalaryreceivedbytheinsuredislessthan(KD230)monthly,theemployershallpaythetwocontribution

portionsforthedifferencebetweentheactualsalaryandtheminimumsalarylimit.Also,heshallbearthetwo

contributionportionsiftheinsuredobtainsasickleavewithoutpay.Inthiscase,contributionsshallbecalculated

forthefullsalary.

5.Theinsuredorbeneficiarywhoworksforanemployershallbearthetotalofbothportionsoftheinsuredand

employerinthecontributionswheneverherequeststhecomputationofthefollowingperiodswithintheinsurance

contributionperiods:-

a)Theperiodofsecondmentordelegationwithanemployerwhichisnotsubjecttotheprovisionsofthesocial

securitylawsolongastheoriginalemployerdoesnotbeartheinsuredsalariesduringthisperiod.

b)Theserviceperiodsduringwhichtheinsureddoesnotreceivehissalaryagainstsuchperiodsexceptthoseones

relatingtothesickleaveswithoutpayment.

6.Iftheinsuredisseconded,delegatedorentrustedwithanemployerwhoissubjecttotheprovisionsofthesocial

securitylawandhepaystheinsured’ssalaryduringthesecondment,delegationorentrustmentperiod,thenthe

saidemployershallpaytheemployer’sshareinthecontributionsaswellasdeductingtheinsuredshareinthese

contributionsfromhissalarywithhim.Inthesecases,contributionsshallbecalculatedonthebasisofthesalary

ofsecondment,delegationorentrustment.

7.Thefollowingperiodsshallnotbecalculatedwithinthecomputedperiodintheinsurance:

a)Theworksuspensionorinterruptionperiodsinthegovernmentsectorforwhichtheinsuredisdecidedtobe

deprivedofhissalary(Civil/Military).

b)Theperiodsofescapingbytherecruitedpersonfromperformingtheobligatorymilitaryserviceorbeingabsent

fromthesamewithoutexcuse.

c)Theperiodsspentbytherecruitedpersoninprisoninenforcementofafinaljudgmentforbeingconvicted.

d)Theperiodsofservicetobeaddedtotheobligatoryserviceperiodiftherecruitedpersoncommittedcertain

typesofcontraventions.

e)Theperiodsprecedingthedateof1/10/1977inwhichtheinsuredwasdeprivedofhissalaryorremunerationby

virtueofadisciplinarydecisionorcourtjudgment.

f) Thetrainingperiodsduringwhichthetraineewasdeprivedofhisremunerationduetofailureintraining.

Therefore,nocontributionsshallbecomedueagainstalltheseperiodsandtheymaynotbeadded.

Contribution PaymentsThesocialsecuritylawobligestheemployertopaythecontributionsduefromhimandtheinsuredforthePublic

InstitutionforSocialSecuritywithinfixedperiodsinordertobeinvestedfortheinsuredpersons’interest.

Also,thelawobligestheemployertopaythePublicInstitutionforSocialSecurityadditionalamountsifheislate

topay thecontributionswithin the legallyprescribeddeadlineaswellas ifhe failed to registeralloranyof the

employeeswhoareworkingforhimwithintheprescribeddatesordidnotpaytheircontributionsbasedonthe

actualsalaries.

When Can Contributions be Payable?Contributions shall be payable to the Public Institution for Social Security in the beginning of the nextmonth

followingthemonthforwhichthecontributionsaredue.

• Asforthecontributionsdueagainstthesalariesdecidedtobepaidunderthelaworbyvirtueofcourtjudgments

oradministrativedecisionsorsettlementsafterthematuritydate,theyshallbepayableatthebeginningofthe

nextmonthfollowingthemonthinwhichthesejudgments,decisionsorsettlementswereexecuted.

• Ifthepaymentduedatecoincideswithanofficialholidayorleavethedateshallextendtothefirstbusinessday

followingtheholidayorleave.

Contribution Payment Proving Certificate ThePublicInstitutionforSocialSecurityshallprovidetheemployerintheprivateandoilsectorswithacertificate

provinghispaymentofhiscontributions.Also,itshallprovidetheself-employedinsuredpersonsandthelike

withasimilarcertificate.TheissuedcertificatebythePublicInstitutionforSocialSecurityshallbeprovidedtothe

governmentalauthoritiesconcernedwiththeissuanceorrenewalofthenecessarylicensesandcertificatesfor

exercisingtheiractivitieswhichpreconditiontheprovisionofsuchcertificatesforthepurposeoflicenseissuance

orrenewal.

Effects Resulting from Delaying the Registration and Payment1.Iftheemployerdelayedthepaymentofthecontributionsduefromhimafterthebeginningofthenextmonth

followingthemonthforwhichtheybecomedueorifhedelayedtheregistrationofallorpartofhisemployees,

thenheshallpayadditionalamountsasfollows:-

• (1%)monthlyof theunpaidcontributionsas fromthepaymentduedateuntil thedateofsettlement.Butan

exemptionfromtheadditionalamountwillbemadeifthepaymentiseffectedwithintendaysfromthematurity

date.

• (Fils500)aspereverydayofdelayingtheforwardingofthedata,noticesandformsrequiredbythelaw.

• (10%)ofthevalueofthedueandpayablecontributionsiftheemployerfailedtoregisteralloranyofhisemployees

within tendays from thedateof their joining the serviceor if hepays the contributionsbasedon incorrect

salaries,inadditiontotheextraamountduefordelayingthepaymentofcontributions.

2.TheinsuredpersonwhoissubjecttotheprovisionsofChapterFiveofSocialSecurityLaw;ifheislatetopaythe

contributionswithintheprescribeddatesshallpayanextraamountequalto(1%)monthlyfortheperiodasfrom

thematuritydateofthepaymentuptothefullsettlementdate.However,theinsuredshallbeexemptedfromthe

extraamountifhepayswithintendaysfromthematuritydateofpayment.

Also,theinsuredpersonwhoisobligatorilysubjecttotheinsuranceandwhodidnotregisterhimselfwithinthe

legallyprescribeddateshallpaythePublicInstitutionforSocialSecurityanextraamountequalto(5%)ofthe

unpaidcontributions.

3.Exemptionfromextraamountsshallbemadeaccordingtotheconditionsandcasesprovidedforintheministerial

resolutioninthisrespect.

Method of Payment1.ThepaymentofcontributionsandotherduefundsforthePublicInstitutionforSocialSecurityshallbemadeas

follows:-

• ByvirtueofachequesinthenameofthePublicInstitutionforSocialSecurity;or

• PaymentincashtothePublicInstitutionforSocialSecuritytreasury;or

• UnderadepositnotificationforthePIFSS,saccountatthecurrentaccountsintheheadquartersofthefollowingbanks:

Bank Name Account No. IBAN CodeCentral Bank of Kuwait 042/03762 KW97 CBKU 0000 0000 0000 0004 2037 62National Bank of Kuwait 1000375231 KW43 NBOK 0000 0000 0000 1000 3752 31

Commercial Bank of Kuwait 0010160442100414016 KW37 COMB 0000 0101 6044 2100 4140 16Gulf Bank 5786701 KW93 GULB 0000 0000 0000 0005 7867 01

Kuwait Finance House 011010000136 KW95 KFHO 0000 0000 0001 1010 0001 36Bank of Bahrain & Kuwait 120000000069 KW32 BBKU 0000 0000 0012 0000 0000 69

Burgan Bank 2065026069 KW59 BRGN 0000 0000 0000 2065 0260 69Al Ahli Bank of Kuwait 0600033803001 KW56 ABKK 0000 0000 0060 0033 8030 01

Ahli United Bank 11509886 KW42 BKME 0000 0000 0000 0011 5098 86Boubyan Bank 0004400001 KW10 BBYN 0000 0000 0000 0004 4000 01

Kuwait International Bank 011010073354 KW59 KWIB 0000 0000 0001 1010 0733 54National Bank of Abu Dhabi (Kuwait) 6200008217 KW75 NBAD 0001 0000 0000 6200 0082 17

Doha Bank (Kuwait) 532-2011420-10-00 KW97 DOHB 0053 2002 0114 0200 0100 00Citi Bank 0004147022 KW80 CITI 0000 0000 0000 0004 1470 22

Al Rajhi Bank 860370010400006 KW22 RJHI 0000 0860 0037 0010 4000 06Warba Bank 1001888018 KW33 WRBA 0000 0000 0000 1001 8880 18

International Bank of Qatar (Kuwait) 2403-000130-001 KW76 QNBA 0000 0000 0240 3000 1300 01

2.Thedataof thepayment formsshallbecompletedandprovidedmonthly to thePublic Institution forSocial

Securitytogetherwiththerelevantchequeordepositadvice.

The Public Institution for Social Security hereby requests all employers to notify PIFSS of any subsequent

amendmentsinthenumberoftheinsuredpersonswhoareworkingfortheminadditiontoastatementshowing

theirsalaries,addressesoftheirplacesofbusinessinthestatementofaccountsentbythePIFSS.

CONJOINING OF PERIODS

PERIODSCONJOINING

Conjoining of Previous Periods of ServiceFirst: Pervious periods of service and subsequent to 1/10/1977 for civilsand 1/3/1981 for military1. Previousperiodsofservicewhichthedisbursementofaretirementremunerationwasnotmade.

• Previousperiodsof servicewhichare intended tobeconjoined, if theywerecivil to thecurrent civil, are

consideredtobeautomaticallyconjoinedundertheprovisionsofsocialsecuritylaw.

• Also,theyareconsideredtobeautomaticallyconjoinediftheintendedperiodstobeconjoinedaremilitaryto

thecurrentmilitaryundertheprovisionsoflawNo.(69)of1980.

• In case of conjoining previous civil periods of service to the currentmilitary, it is approved to conjoin in

accordancetotheprovisionsofResolutionNo.(11)of1981andvice-versa.

2. Previousperiodsofservicewhichthedisbursementofaretirementremunerationwasmade.

• InaccordancetotheprovisionsofResolutionNo.(1)of1993,itisapprovedtoconjointheintendedperiods

whicharetirementremunerationhasalreadybeendisbursedfortheinsuredpersonorthebeneficiaryorthe

contributorinChapterVinsurance,hemustrefundtheretirementremunerationeitherinonepaymentorin

monthlyinstallmentsinanamountof(%10)ofthesalaryorthecontributionbracketonthedateofsubmission

oftheapplicationforconjoininginaccordancetotherulesandregulationssetforthinthisResolution.

The Required Documents for Conjoining Application

• A recent salary certificate which clearly indicates (the basic salary, social allowance and the allowance

approvedforthechildrenforthegovernmentalsector).

• Theoverallsalaryfortheprivate*andoilsectorsinamaximumlimit(KD1500)forallentities.

* AcertificateattainedfromtheManpowerandGovernmentRestructuringProgram.

Second: Conjoining Previous Periods of Service prior to Obtainment ofKuwaiti NationalityTheResolutionNo.(21)of1982ontheconjoiningofpreviousservicesbeforeobtainingtheKuwaitinationalitywas

issuedon12/9/1982sothattheinsuredorbeneficiariescanbenefitfromtheconjoiningofthepreviousservice

periodsbeforegettingtheKuwaitinationalitytotheirperiodsofcontributioninChapterThreeinsuranceortothe

periodsthataresubjecttotheprovisionsofLawNo.(69)of1980inordertobeeligibletoretirementpensionor

increasingtheirperiodsofservice.

Entities at Which Previous Service Periods Can be Conjoined

1.Governmentalauthorities.

2. Theauthoritiesandinstitutionswithannexedbudgetstothestatebudgetorwithindependentbudgetsandother

publicauthorities.

3. Shareholdingcompanieswithpubliccontribution.

4.Banks

5. Stateownedcompaniesevenifexpiredbeforebeingownedbythestate.

6.Closedshareholdingcompaniesownedbytheentitiesprovidedforinthepreviousclauses,whetheraloneor

withotherparties.

7. ArabOilCompanyLimitedwhenevertherelevantperiodhadstartedbefore20/5/1970.

8. KuwaitChamberofCommerceandIndustry.

9. InternationalIslamicCharitableOrganization.

Conjoining Conditions

1. Itisconditionalthattheserviceperiodshouldbeanactualperiodduringwhichtheinsuredreceivesasalaryor

itwasaperiodwithlumpsumsalaryorinterimjoboratemporarywork.

2. Itisaconditionthattheserviceperiodshouldbeaftertheageof(18years)ortheprescribedageforappointment.

3. Theperiodshouldbedocumentedintherecordsandfilesofemployers.

4. Aretirementpensionshouldbeentitled,assumingnon-conjoining,oruponserviceterminationwhenreaching

fiftyyearsofage.

Required Documents for Conjoining Application

1.Acertificateontheserviceperiodtobeconjoinedtogetherwithacopyoftheserviceterminationremuneration

paymentform.

2.Acertificateofthecurrentsalaryasontheapplicationfilingdate(thebasicsalary,socialallowanceinadditionto

childrenallowance).

3.TheAmiriDecreeunderwhichhewasgrantedtheKuwaitinationality.

Computation Method for Conjoining Amount

The conjoined amount shall be fixed at the rate of (7.5%) of the subject salary to the basic insurance in the

applicationfilingdateaspereveryyearofthefirstfiveyearsoftheperiodsrequiredtobeconjoinedandatthe

rateof(12%)ofthesaidsalaryforeveryextrayearoftheperiodspreceding23/6/1982and(15%)fortheperiods

followingthedateof24/6/1982.

The insuredmaypaytheconjoiningequivalentamount inonepaymentor inmonthly installments (5years/10

years/15years)pursuanttotheattachedscheduletotheresolutionwithin30daysfromthedateofbeingnotified

oftheapprovaltosuchconjoining,bearinginmindthattheadditionapplicantwillnotbenefitfromtheinstallment

ofsuchpartoftheconjoiningamountthatisequaltotheendofserviceremunerationfortheperiodsrequiredto

beconjoined.

Third: Conjoining Nominal Periods of Contribution in Chapter ThreeTheResolutionNo. (3)of1978 regarding rulesand regulationsofconjoiningnominalperiodsofcontribution in

ChapterThreewasissuedon30/1/1987inthepurposeofentitlementto,orincreaseoftheretirementpension.

Conjoining Conditions:

1. Theinsuredpersonmaypurchaseanominalperiodof(3)monthsandmultiplyitinamaximumlimitof(5)years

duringtheservice.

• TheamountofconjoiningshallbespecifiedinaccordancewiththeattachedScheduleNo.(1)onthebasisof

No.(2)totheResolutionandtheinsuredpersonshallpayitinonepaymenttotheInstitutionwithinonemonth

fromthedateofthenotification.

2. Iftheinsuredpersonattainedtheage50years,hemayconjointhenominalcontributionperiodsfortheactual

serviceperiodinamaximumlimitof(6months/7years)forthecompletionofthenecessarytheentitlementtoa

retirementpensionwhichis(15years)withinonemonthfromthedateofendofservice.

TheamountofconjoiningshallbespecifiedinaccordancewiththeattachedScheduleNo.(2)onthebasisof

No.(1)totheResolutionandhemaypaytheconjoiningamountinonepaymentorinamonthlyinstallments

deductedfromhisretirementpensionasfollows:

• (5years)

• (10years)

• (15years)

3. Thepensionermayconjoinanominalcontributionperiodtotheretirement increase inamaximumlimitof (5

years)anditshallnotexceedhisactualandconjoinedserviceof(30)yearswithintheendofservicedate.

• TheamountofconjoiningshallbespecifiedinaccordancewiththeattachedScheduleNo.(2)onthebasisof

No.(2)totheResolutionanditshallbepaidinonepaymentwithinonemonthfromthedateofthenotification.

Calculation Method for Conjoining Amount:

Thecontributionsalary(notexceedingthemaximumlimit)coefficienttotheageoftheperiodinmonths.

• Hemaypaytherestoftheconjoiningamountincaseofinstallments(fortheremainingamount)forcalculating

thecurrentvalueanditdoesnotrepresentthebalancebutanactuarialcalculation.

Forth: Conjoining Nominal Periods of Contribution in Chapter FiveResolutionNo.(10)of1986wasissuedregardingtherulesandregulationsofconjoiningnominalperiodsinChapter

FiveinSocialSecurityLawon12/10/1986.

Conjoining Conditions:

• ThecontributorsinChapterVmayconjointhenominalcontributionperiodsfortheentitlementoftheretirement

pensioninaccordancewiththefollowingconditions:

1. The insuredpersonshall notbepracticinganybusinesswhich is subject toChapterV insuranceon the

submissiondateofapplication.

2. TheinsuredpersonshallhaveanactualcontributionperiodinChapterVminimum5years.

3. Theinsuredpersonshallhavereachedtheageofsixtyupontheendoftheircontribution.

4. Tosubmittheapplicationwithin3monthsfromtheendofthecontribution.

• Theamountofconjoiningshallbespecifiedasfollows:

- Thelastcontributionbracketis(KD600)andless,theconsiderationshallbecalculatedonthebasisofthe

duecontributionsfortheconjoinedperiod.

- Thelastcontributionbracketexceeds(KD600)andshallbecalculatedonthebasisofScheduleNo.(1)*.

- Theconjoiningamountshallbepayableinonepaymentorinamonthlyinstallmentsforaperiodof(5)years

or(10)yearsor(15)yearsinaccordancewithScheduleNo.(2)*.

• Theinsuredpersonmaypaytherestoftheconjoiningamount(theremainingamount)uponthecommencement

oftheinstallments(thecurrentvalue)inactuarialcalculation.

• Thecalculationoftheconjoiningamountifthebracketwas(KD600)orless

=contributionbracketpercentageagainstthecontributionbracketoftheconjoinedperiodinmonths.

*inaccordancetotheattachedScheduletotheResolution.

Fifth: Conjoining the previous periods to the contribution period in Chapter VResolutionNo. (5) of 1985was issued regarding conjoining the previous periods to the contribution period in

ChapterVon9/5/1985.

TheinsuredpersonwhoissubjecttotheprovisionsofChapterVmayrequesttoconjointhepreviousperiodsof

serviceorbusinessonthedateofthecommencementofthecontributioninChapterV.

Conjoining Conditions

1. Periodsofservicewhichendedingovernmental,privateoroilsectorsbefore1/10/1977.

2. Periodsofmilitaryservicewhichendedbefore1/3/1981.

3. PeriodsofserviceinChapterIIIwhichendedafter1/10/1977ingovernmental,privateandoilsectors.

4. Periodsofmilitaryservicewhichendedafter1/3/1981.

5. PeriodsofservicepriortoobtainmentofKuwaitinationality.

6. PeriodsspentinmembershipofMunicipalCouncilorthepositionofmayorbefore1/3/1986.

The Obliged Conditions to Conjoin Periods of Previous Service:

Theconjoiningshallbeinaccordancewiththeconditionsoftheprescribedresolutionsforeveryperiodwithregard

totheconditionsforconjoining.

TheconditionstobefulfilledincasetheendofthebusinessinChapterV:

1. ThecontributionperiodinChapterVshouldbenotlessthantheperiodsindicatedintheattachedScheduleNo.

(3)totheresolutionagainstthecommencementcontributionbracket(excludingdeathcasesandtotaldisability,

itisnotrequiredtospendthespecifiedcontributionperiodsinChapterV).

2. Theconjoiningshouldcompletetheobligedperiodfortheentitlementoftheretirementpension.

• Theinsuredpersonmaypayadditionalamountforconjoiningpreviousperiodsinadditiontothedueamounts

ofconjoiningasfollows:

1. Attaining the age of 40 years and more:

Onthedateofthecontributioncommencementtakingintoconsiderationtheapproximationtoayearifthe

fractionoftheyearwas6monthsormoretheageis40yearsormore.

2. The Marginal Bracket:

Itisthebracketthatisestimatedaccordingtooneofthefourmethodsthatarecalculated,andincasethe

marginalbracketwaslessthanthecommencementcontributionbracketanadditionalamountisdue.

3. Additional Amount Calculation:

Additional Amount = (Contribution commencement bracket –marginal bracket) 12 additional amount

coefficientoftotalperiodsthatarerequiredtobeconjoined.

The insuredmay not pay the additional amount in case of reduction of contribution commencement

bracketorreductionoftheconjoinedperiods.

Sixth: Conjoining the Calculated Periods in Chapter V to the Contribution Periodin Chapter IIITheResolutionNo.(3)of1994wasissuedinregardstotheconditionsandregulationsofconjoiningthecalculated

periodsinChapterVtothecontributionperiodinChapterIIIon25/9/1994.

Theinsuredpersonorbeneficiarymayrequesttoconjointhecalculatedpreviousperiodinaccordancewiththe

provisionsofChapterVtohiscontributionperiodintheinsuranceinChapterIII.

Conditions for accepting the conjoining request:

• Submittingtheconjoiningrequest.

• NotifytheinsuredpersontheneedtopaythepreviouscontributionsinChapterVandincaseofnon-payment,

heshallbenotifiedforthenecessityofpayment.

• Refundwhathavebeendisbursedfromretirementremunerationfromtheperiodrequiredtobeconjoinedifany.

• Arecentsalarycertificateclearlystates(thebasicsalaryandsocialallowanceandtheapprovedallowanceforthe

children)thatdoesnotexceedthemaximumlimitthusincasethedisbursementoftheretirementremuneration.

• Theinsuredpersonorbeneficiaryshallbenotifiedontheapprovaloftheconjoiningapplicationandtheconjoining

shall be executed upon the fulfillment of its conditions and the insured person or beneficiarymay bear an

additionalamountupontheendofservicefortheretirementpensionentitlement.

• Theadditionalamountwillbecalculatedatthedepartment.

Conditions for the Completion of Conjoining:

• ConjoiningshallnotbefulfilledunlessinthethreecasesincludedinArticleNo.(3)oftheResolution.

Theadditionalamountshallbecalculatedinsomecasesanditshallbecalculatedbythedepartmentinthecase

ofendofservicefortheretirementpensionentitlementanditshallbedeductedfromsaidpension.

Incaseofcommutationduringservice,theadditionalamountshallbedeductedfromhissalaryanditshallbe

deductedinmonthlyinstallmentsinanamountof(%10)andhemaypayitinonepayment.

Seventh: Conjoining of Periods Spent without SalaryResolutionNo.(4)of1994on25/9/1994ontheconditionsandrulesofservicecomputationsfortheperiodagainst

whichtheinsureddoesnotreceivesalarywithinthesubscriptionperiodinChapterThreewasissued.

Entities at which Leave without pay are spent

Forthecomputationoftheperiodstobecalculatedwithintheinsurancesubscriptionperiod,itisconditionalthatit

shouldhavepenetratedaserviceperiodspentwithoneofthefollowingentities:-

• Governmentauthorities.

• Stateownedcompanies.

• Shareholdingcompaniesofpublicsubscription.

• Entitieswhoseemployeesaresubjecttosuchemploymentsystemsconcludedundercollectiveagreements.

Otherthantheaboveentities,itisaconditionthattheinsuredshouldhavespentintherelevantentityanactual

serviceperiodnotlessthantheperiodrequiredtobecomputed.

Required Documents for Conjoining Application

1.Copyofleavegrantingdecisionandworkre-joiningaswellasacopyofleavedisconnectiondecision(incaseof

disconnection).

2. Salaryscaleduringtheleaveperiodtobecomputed(basicsalary–socialallowance).

Computation Method for Conjoining Amount

Theinsuredpersonshallcomplywiththesubscriptionsstipulatedinclauses(a,b)of(First)ofArticle(11)ofSocial

SecurityLawwhichrepresenttheshareoftheinsuredpersonandemployer.

Also,hemaypaytheconjoiningamountinonepaymentorinmonthlyinstallmentnotexceedinganamountequal

tothenumberofthefullmonthsoftheperiodrequiredtobecomputed.

Moreover, the insuredmaybeexempted fromthepaymentof thedueadditionalamounts for thatperiod if the

applicationisfiledwithinthreemonthsasfromthedateofworkcommencementbytheinsured.

Eighth: Conjoining the Periods of Actual Service Prior to 1/1/1995in the Supplementary InsuranceResolutionNo.(3)of1997wasissuedat14/1/1997inregardstotherulesandconditionswhichupontherequest

oftheinsuredpersonorbeneficiarymayconjointheperiodofactualservicepriorto1/1/1995inthesupplementary

insurance.

1. TheapplicationforconjoiningshallbesubmittedontherelevantformpreparedbytheInstitutionforthispurpose,

withinaperiodnotexceedingfiveyearsfromthedateofenforcementofthisresolution1/12/1997whichends

on30/11/2002andwasextendedtooneyearfrom1/7/2005to30/6//2006orfromthedateofsubjectiontothe

supplementaryinsurancewhicheverislateranditshallnotbetakenintoconsiderationtheperiodswhereinthe

insuredpersonisnotsubjecttothesupplementaryinsurance.

2. Theapplicationshallbeaccompaniedwithanofficialdocumentfromtheemployerfortheperiodsrequiredfor

conjoiningindicatingthebeginningandendoftheallowancesubjectedtothesupplementaryinsurance.

3.Regardingtheperiodsrequiredforconjoining intheprivateandoilsectorswherethe installedsalaries inthe

Institutionshallbeconsidered,itisrequiredthatthecontributionsalarythroughouttheperiodforconjoininghas

reachedthemaximumlimitprescribedbythesocialsecuritylaw.

4. Arecentsalarycertificateshallbeaccompaniedwith theapplicationwhichclearly indicatesthebasicsalary,

socialallowancesandallowanceswhicharesubjecttothesupplementaryinsuranceonthedateofsubmitting

theapplicationforconjoining.

5.Conjoiningpreviousperiodofserviceissubjecttoamonthlyinstallmentdeterminedat(5%)ofthesalarysubject

tothesupplementaryinsuranceatthedateofsubmittingtheapplicationforconjoiningforaperiodequaltothe

periodtobeconjoined.

6. Thepaymentforthemonthlyinstallmentsfortheconjoiningamountofthesupplementaryinsuranceatthedate

ofpaymentofmonthlycontributions,uponnotificationbytheInstitution,effectivefromthefirstdayofthemonth

followingthelapseofonemonthfromthenotificationdate.

7. Iftheinsuredperson’scontributiontotheSupplementaryInsuranceSchemeexpiresbyentitlementtoapension

prior tocompleting theconjoiningof full previousperiod required forconjoining,hemay requestcalculating

theperiod thathasnotbeenconjoined,provided thatheshallpaya lumpsumamountno later than three

monthsfromthedateofexpiryofhiscontribution,calculatedat(15%)ofthesalaryonwhichbasisthemonthly

installmentforconjoiningamountwascalculated,foreachmonthoftheabove-mentionedperiod.

8. Theprovisionsofthisresolutionshallapplyonthepensionersandbeneficiariesintheeventsofendofservice

thatoccurredwitheffectfrom1/1/1995.

*Thefollowingshallbeexemptedfromthepaymentofconjoininginstallmentsofthesupplementaryinsurance:

a) Theinsuredorpensioner’sdeath.

b) Endofserviceduetototaldisability.

Ninth: Conjoining Previous Periods of Service Spent Abroad and the LikeResolutionNo.(3)of1998wasissuedregardingtherulesandconditionsonconjoiningpreviousperiodsofservice

spentabroadandthelikethattheinsuredpersonorthebeneficiarymayconjoinpreviousperiodsofservicespent

abroadorinside(namelyinsidetheStateofKuwaitsuchastheforeignorunregisteredcompaniesinPIFSS)foran

employernotsubjecttotheprovisionsofthereferencedLawNo.(61)of1976andinaccordancewiththerulesand

conditionssetforthinthisresolution.

Conditions for accepting the conjoining request:

• PaymentofallamountsthatfelldueontheinsuredincasehecontributedinChapterV.

• Submit his application on a date that does not exceed two years effective the date of enforcement of this

resolutiontill4/5/2000oreffectivethedateofexpiryoftheperiodrequiredtoconjoin,whicheverislater.

• Theperiodrequestedforconjoiningshouldbelatertoattainingtheageofeighteen.

• Therequestshouldbeaccompaniedwiththecertificatesprovingtheperiodsrequestedforconjoiningafterthe

authenticationthereofbythecompetentauthorities.

• Theperiodsrequestedforconjoiningshouldhavebeenspentinoneofthefollowingentities:

1.Governmententities,publicorganizationsandinstitutions.

2. Publicsubscriptionshareholdingcompanies.

3.Closedshareholdingcompaniesownedbytheentitiessetforthinthetwoprecedingclauses.

4.Universities,highereducationinstitutions,banksorinsurancecompanies.

5. Internationalorregionalorganizations.

Required Documents:

• Anauthorizedcertificatefromtheofficialentities.

• Arecentsalarycertificate.

• Applyfortherequestbytheconcernedpartyviahiscurrentemployer.

Computation Method for Conjoining Amount for Employees Working Abroad:

• ConjoiningAmount = the salary on the date of submitting the application 15% for the required periods for

conjoininginmonths.

• Theinstallmentsshallbe10%ofthesalaryorlastcontributionbracketonthedateonsubmittingtheapplication.

• Theinsuredpersonshallbenotifiedontheconjoiningamountupontheindicationof interesttopayit inone

paymentorinmonthlyinstallmentswithin(90days).

VOLUNTARY CONTRIBUTION SYSTEM IN SOCIAL SECURITY FOR KUWAITIS

WORKING ABROAD & THE LIKE

WORKINGABROAD

Voluntary Contribution System in Social Securityfor Kuwaitis Working Abroad and the Like• Theprevailingsocialsecurityschemesinthedifferentcountriesoftheworldarecurrentlymovingtowardsmaking

the social security scheme to cover all citizens including thosewhoareworkingoutside the territory of the

relevantcountry.

• TheSocialSecuritySystemintheStateofKuwait,aftercoveringallcitizens,whetherworkinginthecivilormilitary

field,theself-employedandthelike,movedtowardscoveringtheKuwaitiswhoareworkingoutsidetheStateof

Kuwaitforforeignentitiesaswellasthosewhoareworkinginsidethecountryforinternationalorganizationsor

institutionswhosearticlesofassociationprovidesforthenon-applicabilityofthelocalSocialSecurityLawtoits

employees.

• In this respect, theLawDecreeNo. (11) of 1988which is operative as from1/10/1988was issuedon the

implementationoftheprovisionsofChapterThreeoftheSocialSecurityLawvoluntarilytotheKuwaiti’swhoare

workingabroadandthelike,wherethislawprovidesthemwiththeadvantagesofthesocialsecurityinequal

termswiththeothercitizens.

Beneficiaries from this Law1. Employeesinthegovernmentsector,theprivatesectorortheotherdifferentbusinesssectorsoutsidetheState

ofKuwait.

2.Employeesofthe internationalorregional institutionsandanyoftheirbranches insidethestateofKuwaitor

abroad.

3.ThosewhoareworkingforanyotherentitywhichwasnotdealtwithintheSocialSecurityLaw,whetherinside

theStateofKuwaitorabroad.

Benefit Conditions•Theinsuredpersonshouldhaveattainedtheageofeighteenyearsoldatthebeginningofthecontributionandhe

shallnotexceed,asonthisdate,theageofsixtyfiveyears.

• TheinsuredwhoissubjecttotheprovisionsofChapterThreeandChapterFiveoftheSocialSecurityLawand

thecivilandmilitaryretirementpensionersshallnotgenerallybenefitfromtheprovisionsofthislaw.However,

anyoftheabovementionedpersonsmaybenefitfromtheinsurancepursuanttotheterms,conditionsandrules

providedforinaministerialresolutiontobeissuedinthisregard.

Registration Procedures• Theinsuredpersonwhodesirestocontributeinthesystemshallcompletethecontributionapplicationinthe

formpreparedbythePublicInstitutionforSocialSecurityforthispurpose(canbeorderedbymail).

• The insuredpersonwillberegistered inthedatewhichhedeterminesforthebeginningofhiscontribution if

hisapplicationisreceivedbythePublicInstitutionforSocialSecuritywithin30daysfromthesaiddate.Ifthe

applicationisreceivedafter30daysorreceivedwithoutstatingafixeddateorifasubsequentdateismentioned

thereinbutthereceivingoftheapplicationislateformorethan30days,thentheregistrationwillbemadefrom

thefirstofthemonthinwhichtheapplicationisreceived.

Naturally,thecontributioncommencementdateshallnotbefixedpriortotheapplicationcompletiondate.

Required Documents• The contribution application shall be accompanied with a copy of the Kuwaiti nationality certificate, birth

documentsandcivilidentitycard.Ifthesedocumentsarenotavailablewiththeinsured,theycanbereplacedby

acopyofthepassport,asatemporaryactionuntiltheyshallbepresented.

• Acertificate issuedbytheemployerprovingtheworkrelationshipexistingbetweenhimandthe insuredand

theamountof themonthly salary receivedby the insured,provided that this certificate shall beattestedby

thecompetentauthoritiesinthecountrywhereheisworkingandtheembassyorconsulateofKuwaitthere.If

theStateofKuwaithasnodiplomaticorconsularrepresentationinthiscountry,thentheauthenticationofthe

competentauthoritiesinthatcountrywillbeadequate.

AsfortheemployerinsidetheStateofKuwait,thecertificateshallbeattestedbytheKuwaitMinistryofForeign

Affairs.

Moreover,thiscertificateshallalsobepresentedduringthemonthofJanuaryeveryyearanduponrequesting

thesuspensionoftheinsurancebenefitaswellasattheservicetermination.

Contributions (Provisions, Dates and Method of Payment)- Theinsuredshallpaycontributionsattherateof(15%)monthlyinawaythatthemonthlysalaryshallnotexceed

(KD2750)andnotbelessthan(KD230).

- Alsotheinsuredshallpaycontributionsattherateof(3.5%)monthlyofthevalueoftheabovesalaryinfavourof

theRetirementPensionIncrementFund.

- Inadditiontothepreviouscontributions,the insuredpersonshallpayanamountof (2.5%)monthlyfromthe

salaryvalueinamaximumlimitof(KD1500)asof1/1/2015tothecreditofthefinancialremunerationfund,and

themaximumlimitforpayingthecontributionshallbe(18years)inwhichthepayingshallbesuspendedafter

that.

- Uponregistration,thePublicInstitutionforSocialSecurityshallnotifytheinsuredoftheamountofthesubject

salary tothe insuranceandtheamountof themonthlycontributionwhichheshallpay fromthissalary, ifhe

receiveshissalaryinaforeigncurrency.

Also,heshallbere-notifieduponanychangeinthedeclaredexchangeratebytheCentralBankofKuwaitin

thefirstdayofJanuaryeveryyearoruponthechangeofthesalaryonthebasisofwhichthecontributionsare

calculated.

- Contributionsshallbecomputedbasedonthecontributionbeginningsalary,andthenbasedonthesalaryof

Januaryeveryyear,anditshallnotbeaffectedbyanychangeofsalaryduringtheyear.

- Contributionsshallbecomedueinfullforeverymontheveniftheinsureddidnotreceivehissalaryforthatmonth,

whether totally orpartially, becausecontributionsarepayable in full for themonth inwhich thecontribution

beginsanditshallnotbedueforthepartofthemonthinwhichitshallexpire.

- Thedateofpayingtheduecontributionsforeverymonthshallbeduringtheperiodfromthefirstdayofthenext

monthfollowingthemonthforwhichitisdueuntiltheendofthemonth.Forinstance,Januarycontributionsare

dueduringFebruary…andsoon.

However,theinsuredmaypayhiscontributionsinadvanceforanyperiodhespendintheworkwhichissubject

totheinsurance.

- ContributionpaymentsshallbemadeeitherbydepositingtothePIFSS,saccountsatthebanksspecifiedby

it,orbyacheckdrawntothePIFSSbythesebanks,orincashtoPIFSS,scashier.Providedthattheinsured

shallnofitytheInstitutionofthedetailsofthepaidamountsintheformspreparedforthispurpose(whichcanbe

orderedbymail).

The suspension of the benefit from the law• Sincethecontributioninthislawisvoluntary,theinsuredmaysuspendthiscontributionatanytimeevenifthe

work relationstillexists.Contributionshallbesuspended in thedatehedeterminesprovided that itshallbe

followingthelastduecontributionpaidtothePublicInstitutionforSocialSecurity.

• Benefitingfromtheinsuranceshallbesuspendediftheinsuredceasetopay(12)successivecontributions.

• Iftheinsuredserviceendedduringthesuspensionperiodofpayingthecontributionsandpriortothecompletion

ofthesame,thenthesuspensionperiodshallbeincludedinthecalculationoftheperiodcountedintheinsurance,

ifthisleadstotheeligibilityoftheretirementpension.Inthiscase,contributionsforthesuspensionperiodshall

becomedue.

Rights Secured by Law for the Insured• Inthissystem,thelawsecuresfortheinsuredthesamerightswhichitprovidesforthosewhoaresubjectto

ChapterThreeofSocialSecurityLaw,whereheorhiseligiblebeneficiarieswill receivea retirementpension

pursuanttothesamerulesandconditionsprescribedfortheemployeeswhoaresubjecttotheaboveChapter.

Also,heshallbeeligibletoreceiveretirementremunerationifsuchconditionsarenotsatisfied.

(THE EXTENTION OF INSURANCE PROTECTION SYSTEM)

INSURANCE FOR KUWAITIS WORKING IN ONE OF THE GCC

GCCINSURANCE

INSURANCE PROTECTION EXTENTION SYSTEM

Insurance Of Kuwaitis Working In One Of The Gulf Cooperation Council StatesIntheimplementationoftheprovisionsoftheunifiedsystemfortheextensionoftheinsuranceProtectiontocitizens

oftheGulfCooperativeCouncilforArabCountrieswhoareworkingoutsidetheirhomecountriesinanymember

stateoftheGulfCooperativeCouncil(GCC);andtheLawNo.(44)of2007concerning“theextensionofsecurity

protectiontothecitizensofthestatesofGulfCooperativeCouncilforArabCountrieswhoareworkingoutsidetheir

owncountriesinanymemberstateoftheCouncil”,theKuwaitiemployeewhoisworkinginaGCCstateshall

obligatorilybesubjecttotheprovisionsoftheLawDecreeNo.(11)of1988concerningthecontributiontosocial

securitybyworkersabroadandthelike.Also,heshallbesubjecttotheprovisionsstipulatedintheSocialSecurity

LawNo.(61)of1976;andtheLawDecreeNo.(128)of1992concerningthesupplementaryinsurancesystem;

andtheLawNo.(25)of2001amendingcertainprovisionsoftheSocialSecurityLawandPensionsIncrementsin

allthatisnotparticularlyprovidedforregardingLawNo.(44)of2007andinamannerwhichisnotcontradictoryto

itsprovisionsasfrom1/1/2006,withexceptionoftheKuwaitiemployeeworkinginQatar,shallbeimplementedto

theseprovisionsasfrom1/1/2007.

Beneficiaries of the Law Theprovisionsof this insuranceshallbeapplicableobligatorily to theKuwaiti citizenwho isworking inaGCC

countrywithanemployerwhoissubjecttothecivilretirement/socialsecuritysysteminthecountrywherethework

isperformed*,providedthatsuchworkshouldbewithoneoftheunitsoftheadministrativebodyinthecountry

wheretheworktakesplaceorthepublicauthoritiesanddepartmentsthereinwhicharesubjecttothecivilservice

lawsorsystemsorheshouldbesubjecttothelabourlawsorsystemsinthosecountries.

Conditions of being subject to the provisions of this insurance:a. TheinsuredpersonshouldbeaKuwaitinational.

b.Theemployershouldbesubjecttothecivilretirementsystem/socialsecuritysysteminthecountrywherethe

worktakesplace.

c. Theworkshouldbewithoneoftheunitsoftheadministrativebodyinthecountrywheretheworkisperformedor

thepublicauthoritiesanddepartmentsthereinwhoaresubjecttothecivilservicelawsorsystemsorheshould

besubjecttothelabourlawsorsystemsinthosecountries.

d.Uponcommencingthecontributiontothissystem,theageoftheinsuredpersonshallnotbelessthan18years

ormorethan65years.

*WorkPlaceState:TheGCCcountrywhereanemployeeisworking/theSubjugatedemployeetothissystem.

• Registration Procedures IfanyKuwaitiemployeejoinstheworkwithanemployerinoneoftheotherGCCcountriesthenheshallbeobligated

topayhiscontributionspursuanttotheprovisionsofthis insuranceandtheemployershall takethe initiativeto

registerhimaccordingtotheapplicablerulesandproceduresinthecountrywheretheworkplaceexists,according

tothedocumentspreparedbytheinstitutionforthispurpose.

• Required Documents for Registration Theemployershallpresentanotificationstatingtheemployee'sjoiningworkwiththefollowingdocuments:-

1.Copiesofnationalitycertificate,birthorageassessmentcertificateandcivilidentitycard.

2.Copyoftheappointmentdecisionoremploymentcontract.

3. Detailedstatementofthesalaryforemployeesinthegovernmentandprivatesectors,ifthesalary'selementsaredetailed.

Contributions: Their Provisions, Dates, Payment MethodThe social security system in theState of Kuwait depends on self-finance in providing security rightswhere the

contributionsconstituteamainsourceamongthesourcesofitsfinance.Contributionsarecomputedonthebasisof

thesalarywhichissubjecttothecontribution«i.e.thecompletebasicsalaryreceivedbytheinsuredpersoninaddition

toallotherallowances,bonuses,grants,orperiodicdonationspursuanttotheprovisionsoftheLawNo.(6)of2010,

providedthatthesubjugatedsalarytothecontributionshallnotexceed(KD2750)andnotlessthan(KD230)››.

- Themonthlycontributionsshallbecalculatedonthebasisofthe insuredperson'ssalarywhich issubjectto

contributionasfollows:

First:Regardingthemonthlycontributionsrequiredfortheperiodfrom1/1/2006to31/7/2007,shallbecomputed

attherateof(17%)ofwhichtheemployershallbearhisshareofthemattherateof(11%)whiletheinsured

personshallaffordhisshareattherateof(6%).

Second:Asregardstotherequiredmonthlycontributions,from1/8/2007,theyshallbecomputedattherateof

(18%)ofwhichtheemployershallbearhisshareofthemattherateof(11%)whiletheinsuredpersonshallafford

hisshareattherateof(7%).

Third:Asregardstotherequiredmonthlycontributions,from1/8/2010,theyshallbecomputedattherateof

(18.5%)ofwhichtheemployershallbearhisshareattherateof(11%)whiletheinsuredpersonshallaffordhis

shareattherateof(7.5%).

It should be observed that if the share paid by the employer in the country where the work is performed is less than the required rate of (11%), the Kuwaiti insured shall pay the difference along with his share in contributions.

- Contributionshallbecalculatedforthefullmonthinwhichbethecontributionintheinsurancehascommenced

anditshallnotbecomedueforapartofthemonthinwhichit isterminated,alongwithobservingthatifthe

serviceoftheinsuredpersonisterminatedinthelastdayofthemonththenthecontributionsshallbecomedue

forthefullmonth.

- Theemployershallprovidethecivilretirement/socialsecurity-authoritiesinthecountryoftheplaceofworkwith

thepay-rolloftheemployeesworkingwithhimforthemonthofJanuaryeveryyearandanychangeswhichmay

bemadeinthesalaryduringtheyearwillnotbeconsidered;andthecontributionscalculationagainstthesalary

asinJanuaryorinthejoiningdate,ifitoccursafterthismonth,shallcontinueuntilJanuaryofthefollowingyear.

- Incaseofanydifferencesduetothevariationinidentifyingthesalarywhichissubjecttocontributionbetween

theemployee/workerhomecountryandthecountrywheretheworkislocatedandanyotherdifferences,the

insuredshallbearthefullrateagainstthedifferenceofthesalarywhichisnotsubjecttothecontributionand

otherdifferences.

- ThemonthlycontributionsshallbepayablebyemployersintheGCCcountriesfortheinsuredKuwaitiswhoare

workingforthemaccordingtothecontributionpaymentdatesprescribedinthecivilretirement/socialsecurity

laworsysteminthecountrywheretheworktakesplace*.

- Theemployershallbeobligatedtodeductthemonthlyrequiredcontributionsandanyotheramountsdueonthe

insured'smonthlysalary,anddeposittheminthebankaccountofthePublicInstitutionforSocialSecurity(State

ofKuwait)inthecountrywheretheworktakesplace,withadditiontohisshareincontributions.

- Inadditiontothepreviouscontributions,the insuredpersonshallpayanamountof (2.5%)monthlyfromthe

salaryvalueinamaximumlimitof(KD1500)asfrom1/1/2015tothecreditofthefinancialremunerationfund,

andthemaximumlimittopaythecontributionsshallbe(18years)inwhichthepaymentissuspended.

* Employee/workerhomecountry:meansoneoftheGCCstateswhichtheemployee/workerholdsitsnationality.

(StateofKuwait)

• Applied Penalties Iftheemployerdelaysthepaymentoftheduecontributionswithinthelegallyfixeddatesorifhefailstoregister

allorpartoftheKuwaitiemployees/workersorifhedoesnotgivenoticeabouttheterminationofserviceofany

ofthemorifhepaysthecontributionsonthebasisofincorrectsalaries,thenheshallbesubjecttotheapplicable

penaltiesinthecivilretirement/socialsecuritylaworsysteminthecountrywheretheworkisperformedandthe

paymentofsuchamountsarisingfromtheapplicationofthesepenaltiesshallbepayabletothebankaccountof

thePublicInstitutionforSocialSecurity(StateofKuwait)inthecountrywhereworktakesplace.

• Reasons for Contribution suspension or Termination - Contributiontothesecurityprotectionextensionlawshallbesuspendediftheinsuredpersonlosesoneofthe

twosubjugationcondition(b,c)thereto.

- Also,thecontributionshallbesuspendediftheinsuredisgrantedaleavewithoutpay,forwhateverperiod,and

theemployershallgivenoticetothecivilretirement/socialsecurityauthoritiesinthecountrywheretheworkis

performedinthisrespect,whoshallinturngivenoticetothePublicInstitutionforSocialSecurityintheStateof

Kuwait.

- Contributiontotheinsuranceprotectionextensionlawshallterminatebytheterminationoftheworkrelationship

foranyreasonwhatsoever,forinstance:(resignation,dismissal,death...etc.)andtheemployermustgivenotice

to thecivil retirement/social securityauthorities in thecountrywhere thework isperformed in this regard in

theformspeciallypreparedforthispurposeintheprescribeddatesinthelawsofthementionedcountry.The

contributionshall also terminate if the insured loseshisKuwaitiNationalityornationalitybeingwithdrawnor

dropped.

Procedures Concerning Disability, Sickness, Death & Loss Cases Intheeventdisability,sicknessordeathoftheinsuredemployee/worker,theemployershallgivenoticetothe

civilretirement/socialsecurityauthoritiesinthecountrywheretheworkisperformedinthisrespect,whoshallbe

responsibletopreparethenecessarymedicalreportsandcertificatesforprovingthedisability,sicknessordeath

cases,andthensendthesametoThePublic Institution forSocialSecurity in theStateofKuwait,soastobe

presentedbeforeconcernedmedicalcommitteesaccordingtotheapplicablerulesandproceduresinlawofKuwait

SocialSecurity,inpreparationforthesettlementoftheduesoftheinsuredorhisbeneficiaries,asthecasemay

be,pursuantofmentionedlaw.

The Guaranteed Rights under the Law for Insured Person Inthissystem,thelawguaranteestotheinsuredpersonthesamerightsitensurestothosewhoaresubjecttothe

provisionsofChapterThreeoftheSocialSecurityLaw,underwhichheorhisbeneficiariesshallbeeligibletoreceive

theretirementpensionpursuanttothesamerulesandconditionsprescribedforthoseemployeeswhoaresubject

tothesaidChapter.Also,heshallbeeligibletotheretirementremunerationifhedoesnotmeettheseconditions.

INSURANCE OF EMPLOYERS,SELF-EMPLOYED AND THE LIKE

EMPLOYERS,SELF-EMPLOYED

Insurance of Employers, Self-employed and the likeTheinsuranceprovisionsstipulatedinChapterFiveoftheSocialSecurityLawshallbeapplicabletothefollowing

categoriesofemployers,self-employedandthelike:-

1.Thosewhoareworkinginfreeprofessions(Self-employed)likelawyers,engineers,accountants,physicians…

etc.

2.TraderswhoarerequiredtoberegisteredintheCommercialRegistryunderthelaw.

3.Jointpartnersingeneralpartnershipsorjointstockcompanies.

4.Dedicatedpartnersformanagementincompanieswithlimitedliability.

5.Ownersoftaxis,meansoftransportation,fishingboatsandshippingvessels.

6.Ownersofmedical institutions,medicalanalysislaboratories,pharmacies,medicinestoresandmedicalglass

manufacturingfacilities.

7.Ownersofnewspapersandmagazinescompanies,libraries,bookshops,andprintingpresses.

8.Ownersofcustomerserviceshopslikerestaurants,café’sandgroceries.

9.Ownersoffactoriesandworkshops.

10.Brokersandcustomsagents.

11.Othercategorieswhoseactivitiesrequirealicensefromthecompetentauthorities.

Registration ConditionsTheinsurancecontributionfortheabove-mentionedcategoriesshallbeobligatoryprovidedthatthecontributer’s

age shall not be less than 18 years and notmore than 55 years as on 1/3/1986 or in the activity practicing

commencementdate,ifitcomeslateron.

Asforcontributerswhoseageismorethan55yearsasattheabovedate,thenhiscontributionandthecontinuation

intheinsuranceshallbevoluntarily.

Thisinsuranceshallnotbeapplicabletothefollowingcategories:

1.Thosewhoareworkingforthirdparties.

2.Retirementpensioners,butanyof themmayrequest tocontributevoluntarily in this insuranceprovidedthat

heshall ask thesuspensionofpayinghispensionaccording to the rulesandconditionsdeterminedby the

MinisterialResolutionNo.(5)of1994.

3.Thosewhoareofmorethan(65)yearsofageuponthebeginningofthecontribution.

REGISTRATION PROCEDURESIfyouareoneoftheabove-mentionedcategories,youshallsubmitanapplicationforcontributioninthisinsurance

inthespeciallypreparedformforthispurposewithinten(10)daysfromthebeginningoftheactivity,bearinginmind

thattheinsuranceshallbeobligatoryasof1/3/1986;andthosewhodidnotcontributepreviouslyshallsubmittheir

contributionapplicationssoasnottobesubjecttothepaymentofadditionalamounts.

Thecontributionapplicationshallbeaccompaniedwiththefollowingdocuments:

1.Copyofnationalitycertificate.

2.Copyofbirthcertificateorageassessmentcertificate.

3.Copyofcivilidentitycard.

4.Acopyofthrcompany’sarticlesofincorporationanditsamendments;andregardingtothecorporations,acopy

ofstatutecertificatefortheestablishmentofthecompanyshouldbeaccompanied.

5.Acopyfromthecommercialregister.

6.Acopyofoccupationallicenseorprofessionalliscenseissuedfromtheauthorizedentity.

7.Providingacopyofthecompany’sarticlesofincorporationwithanyamendmentsthereto;andundertakingto

presentcopiesofallamendmentswhichmayoccursubsequentlyinadditiontoprovidingthePublicInstitution

forSocialSecuritywithacopyofthecommerciallicenseuponeveryrenwal.

8.Toaccompanythespecialformoftheauthorizedsignatoriesfortheemployeronreleases,correspondences,

special forms forapplyingsocial security lawand thedecisions issued for thatmatterwith the registeration

application.

9.Torecieveformthe Institutionyourspecial registrationnumberthatwillbereferredtowhendealingwiththe

Institution.

MONTHLY INCOME BRACKETSTheinsuredmayselectanyofthementionedbracketsinthefollowingtablewhichissuitableforhisincomeandhe

shallmonthlypaytherelevantcontributionamountshownagainsteachbracket:

Bracket in KD Chapter Five Contribution Rate

Increment Fund Contribution Rate

Contribution Rate for the Financial

Remuneration Fund

Total Monthly Payable

Contributions in KD

Period to be elapsed to amend the Bracket

(by month)

200 5% 3.5% 2.5% 22/000 36250 6% 3.5% 2.5% 30/000 33300 7% 3.5% 2.5% 39/000 30350 8% 3.5% 2.5% 49/000 27400 9% 3.5% 2.5% 60/000 24450 10% 3.5% 2.5% 72/000 24500 11% 3.5% 2.5% 85/000 21550 12% 3.5% 2.5% 99/000 21600 13% 3.5% 2.5% 114/000 18650 14% 3.5% 2.5% 130/000 18700 15% 3.5% 2.5% 147/000 15750 15% 3.5% 2.5% 157/500 15800 15% 3.5% 2.5% 168/000 15850 15% 3.5% 2.5% 178/500 12900 15% 3.5% 2.5% 189/000 12950 15% 3.5% 2.5% 199/500 12

1000 15% 3.5% 2.5% 210/000 121050 15% 3.5% 2.5% 220/500 91100 15% 3.5% 2.5% 231/000 91150 15% 3.5% 2.5% 241/500 91200 15% 3.5% 2.5% 252/000 91250 15% 3.5% 2.5% 262/500 91300 15% 3.5% 2.5% 273/000 91350 15% 3.5% 2.5% 283/500 91400 15% 3.5% 2.5% 294/000 91450 15% 3.5% 2.5% 304/500 91500 15% 3.5% 2.5% 315/000 9

LawNo.11/2014was issued todetermineafinancial remunerationand iseffectiveas from1/1/2015and the

maximumlimitforpayingthecontributionshallbe(18)yearsandthatthecontributionpaymentshallbesuspended

afterthatperiod.

Note:

1.Theminimumrateforcontributioncommencementbracketforlawyersis(KD400)monthly.

2.ThecontributionsintheRetirementPensionsIncrementFundarecalculatedbefore1/8/2010asfollows:

- (2%)fromthemonthlycontributionbracketoftheperiodfrom1/8/2004to31/7/2007.

- (3%)fromthemonthlycontributionbracketoftheperiodfrom1/8/2007to31/7/2010.

- (3.5%)fromthemonthlycontributionbracketasof1/8/2010.

AMENDMENT OF BRACKETSa) AmendingContributionCommencementBracket;

Youshallhavetherighttoamendthebracketinwhichyourcontributionintheinsurancehasstartedandyou

mayselectanyotherincomebracket(mentionedintheattachedschedule),providedthatyoushouldfileyour

applicationwithinaperiodnotexceedingfiveyearsasfromthebeginningdateofthecontribution.

b)Amendingthebracketonthebasisofwhichthecontributionispayable:

Youmayamendthemonthlyincomebrackettotheimmediatelyhigherbracket,providedthatthecorresponding

periodofthebracketagainstwhichthecontributionsarepaid(intheattachedschedule)shallexpireinaddition

tothesettlementofallothercontributionsandamountsduefromyouuptotheamendmentapplicationdate.

• Contributionsshallbecomedueinfullagainstthemonthinwhichthecontributionbegins.Nothingshallbedue

againstthepartofthemonthinwhichthecontributionexpires,exceptifthecontributionexpiresinthelastday

ofthemonth.

• Contributionsshallbepayableatthebeginningofthenextmonthfollowingthemonthagainstwhichitisdue.

Forexample,JanuarycontributionsshallbedueinthebeginningofFebruary.

• ThebenefitfromtheinsurancecontributionshallceaseiftheinsuredissubjecttoChapterThreeoftheSocial

SecurityLaw.Also,thebenefitfromtheinsuranceshallceaseuponterminatingthevalidityofthelicenseandthe

non-renewedperiodsshallberemovedfromthecontributionperiodsmentionedinChapterFive.

INSURANCE PRIVILEGES1. Thecontributioninthisinsuranceprovidesyouwitharetirementpensioninthefollowingcases:

a)Ifyouattainedtheageof60yearsandcompletedacontributionperiodof15years.

b)Ifyouattainedtheageof55yearsandcompletedacontributionperiodof20years.

c)DisabilityorDeath:Incaseofthetotaldisabilitytopracticetherelevantactivityorincaseofdeathbeforethe

expiryofthecontributionorwithintwoyearsfromthedateofitsexpiry,thenthepensionshallbecomedueforyour

familyregardlessofyourtermofcontributionintheinsuranceinadditiontothedeathgrant,intheeventofdeath.

2.Pensionersmaycommuteaquarterofthepensioninacertainamounttobepayableinonepaymentforfacing

anyemergencycircumstances.

3.Theperiodsofthepreviousservicespentintheworkwiththegovernmentsector(civilandmilitary),oilorprivate

sectorsorthepreviousperiodsspentinthemembershipoftheMunicipalCouncilandMayorsmaybeconjoined

inaccordancetheregulationsandrulessetforthinthismatter.

4.Ifthepensioneligibilityconditionsarenotavailable,theinsuredshallbegivenaretirementremunerationtobe

payableaccordingtotheprescribedrulesandregulationsinthisrespect.Also,theremunerationfortheextra

periodwhichisnecessaryfortheeligibilityofthemaximumpensionrateshallbedue.

Pension Calculation Method in Chapter FiveThemonthlypensionshallbecomputedattherateof(65%)for(thefirst15years)plus(2%)foreveryextrayearin

amaximumlimitof(95%)ofthebracketsaverageduringthelastthreeyears.

Theretirementpensionshallbepayablemonthly.

Remuneration Eligibility in Chapter Five• Iftheinsuredpersonisnoteligibletoaretirementpensionupontheexpiryofhiscontributioninthisinsurance,he

shallbeeligibletoretirementremunerationprovidedthathiscontributionperiodshallnotbelessthanoneyear.

• Also, he shall receive remuneration for the period extra than the necessary period for being eligible to the

maximumpensionlimit,i.e.(30years).

Remuneration Calculation Method in Chapter Five• Bracketsaverageforthelast3yearsx12xcontributionyearsxthelastrateonthebasisofwhichthecontribution

isdue.

SUPPLEMENTARY INSURANCESUPPLEMENTARY

INSURANCE

Supplementary Insurance SystemIntroductionThePublicInstitutionforSocialSecurity,aftercoveringallcitizenswhoareworkinginsidethecountryandabroad

underthecoverageoftheSocialSecurity,directeditseffortstowardscoveringtheelementsofthesalaryonwhich

theinsureddependstosecurehislivingbutthatarenotincludedwithinthecomponentsofthesalarythatissubject

tothebasicinsurancesystem,withsuchatypeofinsurancewhichissuitabletothenatureofthesecomponents,

i.e.the“supplementaryinsurance”inrespectofwhichtheLawDecreeNo.(128)of1992onthesupplementary

insurancesystemwasissuedwhichwehereundermentionitsmostimportantfeatures:

Its ObjectiveTheobjectiveofthissystemistoincludethecashamounts,onwhichtheinsuredorbeneficiaryusuallydepends

on throughouthiscourseof life,but theyarenot includedwithin thesalarysubjugated to thebasic insurance,

particularlytheallowances,remunerationsandincentivessoastobeapartofthepensiononwhichtheinsuredwill

dependaftertheterminationofhisservice.

Coverage Scopea)ItshallcovertheinsuredpersonsinChapterThree(includingworkersabroad).

b)ThemilitarypersonnelwhoareworkingfortheMinistryofDefense,MinistryofInterior,andtheNationalGuard.

Theinsurancefortheabovetwocategoriesshallbeobligatory.

c)TheinsuredpersonsinChapterFivewhoseincomebracketsamountupto(KD1250)permonth.

d)Itshallalsocoverwhodesiresofcategories(a,b)toincreasehissalaryevenifheissubjecttotheobligatory

insurance.Theinsuranceforcategories(c,d)shallbevoluntary.

Monthly Contributions(5%)ofthesupplementarysalaryshallbebornebytheinsuredmonthlyplus(10%)ofthesalarytobebornebythe

employer.

ThesecontributionsshallbepaidtothePublicInstitutionforSocialSecurityaccordingtotheprovisionsandwithin

thelegallyprescribeddatesforpayingtheduemonthlycontributionsagainstthebasicinsurance.

Applicable Date of Supplementary SystemLawDecreeNo.(128)of1992onsupplementaryinsurancesystemisoperativeasfrom1/1/1995.

Conjoining of Previous PeriodsThetermsprecedingthedateof1/1/1995duringwhichtheinsuredwassubjecttothesupplementaryinsuranceon

suppositionthathewassubjecttoitshallbeconjoinedpursuanttothefollowingconditions:

a)Heshallsubmittheinclusionapplicationwithinfiveyearseffectivefromthedateof26/1/1997orasfromthedate

ofsubjugationtotheinsurance,ifitcomeslateron.

b)Providinganofficialcertificateprovingthattheapplicantwasreceivingasupplementarysalaryduringtheperiod

requiredtobeconjoined.

c)The contribution salary in the basic insurance during the period to be conjoined should have reached the

maximumlimit,fortheperiodsspentintheprivateandoilsectors.

d)Theperiodsrequiredtobeconjoinedshouldbecountedinthebasicinsurance.

Supplementary Pension Eligibility CasesThesupplementarypensionshallbedueinsuchcaseswherethebasicpensionshallbedue,andthesupplementary

pensionshallbedeemedasapartoftheretirementpensionanditshallbesubjecttoallitsprovisions.

Supplementary Pension Calculation MethodThe supplementary pension shall be computed based on the balance to be calculated for the insured in the

supplementaryinsuranceaccordingtothescheduleattachedtothelaw.

CommutationItisallowabletocommutefromtheduesupplementarypensionforthecontributionperiodinthesupplementary

insuranceandtheconjoinedperiods,excepttheconjoinedportionthereofinlessthan(15%).

Retirement RemunerationIntheeventofnon-eligibilitytoasupplementarypension,aretirementremunerationshallbecomedueanditshallbe

calculatedbasedonthebalanceandbepayableinthesamecaseswheretheretirementremunerationispayable

fromthebasicinsurance.

General ProvisionsAllthatisnotparticularlyprovidedforinthesupplementaryinsurancesystemshallbesubjecttotheprovisionsof

theSocialInsuranceLawNo.(61)of1976.

PENSIONS & REMUNERATIONSOF PENSIONERS PENSIONS

Permanent Retirement Pensions Eligibility Cases (Civil)Theinsuredshallreceivearetirementpensionupontheterminationofhisserviceforoneofthefollowingreasons:

• Deathortotaldisability,ortheoccurrenceofeitherofthemwithintwoyearsasfromtheserviceterminationdate.

• Medicalunfitnessordepletionofsickleaves(governmentsector+fullystateownedcompanies).

• Terminationoftheinsuredserviceforsuchreasonsthatendangerhislifeifhecontinuestodohiswork,provided

thatheshallhaveacontributionperiodofnotlessthantenyearsinthiswork.

• Terminationofserviceofthemarried,divorced,orwidowedwomanforreasonsotherthantheaboveonesif

everyoneofthemishavingchildrenandhercontributionperiodreachedupto(15years)andsheattainedthe

agestatedinTableNo.(7A)attachedtothelaw.Inthiscase,thepensionshallbepaidwithoutdeduction;and

thisshallbeapplicabletothemarriedwomanwithoutchildren,providedthattwoconsecutiveyearsshouldhave

lapsedsincehermarriageasattheserviceterminationdate.

Also,itispermissible,inthecasesofserviceterminationfallingafter31/12/2009andbeforeattainingthefixed

ageintheaboveschedule,inaperiodofnotmorethanfiveyearsandinamannerthattheageupontheservice

terminationshallnotbelessthan40years,thattheinsuredmayselecttoreceivethepensioninsteadofthe

retirementremunerationprovidedthatthepensionshouldbereducedbythefixedrateinthisrespect.

• Terminationoftheinsured’sserviceforsuchreasonsotherthantheonesstipulatedinthepreviouspointsandhe

hadreachedtheprescribedageinSchedule(7B)attachedtothislawifhehasacontributionperiodofnotless

than(15years)attheageoffiftyor(20years)beforethatage.

• Terminationof the insuredperson’sservice in thecases referred to in thepreviouspoint if theperiodofhis

contributionreachedthefixedlimitanddidnotattainthefixedageinScheduleNo.(7B).Inthiscase,heshall

beeligibletothepensionbutitshallnotbepaidtohimunlesshereachestheprescribedageorthatdeathor

disabilitytakesplacebeforethat.

• Terminationofserviceof the insuredwhoexerciseahard,dangerousorharmfulworkandhehasanactual

periodofserviceof(20years)insuchworks.

Schedule No. (7 A)FixingtheAgebeforewhichthepensionshallnotbeduepursuanttoClause(5)ofArticle(17)

Service Termination DateAge in applying Clause (5)Up to 30/6/2004Without fixing a certain age

From 1/7/2004 to 31/12/200641From 1/1/2007 to 31/12/200942From 1/1/2010 to 31/12/201243From 1/1/2013 to 31/12/201444From 1/1/2015 to 31/12/201545From 1/1/2016 to 31/12/201646From 1/1/2017 to 31/12/201747From 1/1/2018 to 31/12/201848From 1/1/2019 to 31/12/201949From 1/1/2020 to 31/12/202050

Note:

Ifthepensionisdueonsuppositionoftheendofserviceuponreachingacertainageaccordingtothisschedule,

thenthepensionshallbecomeduewhatevertheageisupontheendofservicethereafter.

Schedule No. (7 B)FixingtheAgebeforewhichthepensionshallnotbeduepursuanttoClause(6)ofArticle(17)

Service Termination DateAge in applying Clause (6)Up to 31/12/200546

From 1/1/2006 to 31/12/200947From 1/1/2010 to 31/12/201248From 1/1/2013 to 31/12/201449From 1/1/2015 to 31/12/201550From 1/1/2016 to 31/12/201651From 1/1/2017 to 31/12/201752From 1/1/2018 to 31/12/201853From 1/1/2019 to 31/12/201954From 1/1/2020 to 31/12/202055

Note:

Ifthepensionisdueonsuppositionoftheendofserviceuponreachingacertainageaccordingtothisschedule,

thenthepensionshallbecomeduewhatevertheageisupontheendofservicethereafter.

Permanent Retirement Pension Calculation MethodThe retirement pension shall bedue at the rate of (65%) of the lastmonthly salary for the contributionperiod

calculatedintheinsuranceamountingto(15years),thenitshallbeincreasedattherateof(2%)pereveryextrayear

inamaximumlimitof(95%)ofthissalary,takingintoconsiderationtothefollowingpoints:

1.Calculating the retirementpensionat thehighest salary receivedby the insuredduring the last fiveyearsof

servicefortheinsuredwhoseserviceexpiredwiththegovernmentsectororthefullystateownedcompanies;

andthedecreaseinthesocialallowancewillbeagainstthewifeorchildrenonly.

2.Regardingtheinsuredpersonswhoareworkingforsuchentitieswheretheemployeesarenotsubjectinthe

determination of their salaries to the approved systems by theCivil ServiceCouncil or in respect ofwhich

collectiveagreementswereconcluded,thepensionshallbecalculatedonthebasisoftheaveragesalaryduring

thelastfiveyearsoftheinsurancecontributionperiodorthefullcontributionterm.

3.Asfortheinsuredpersonsintheprivateandoilsectorsworkinginotherthanthefullystateownedcompanies

whoweregranted thesocialallowanceandchildrenallowancepursuant to theNationalManpowerSupport

LawNo.(19)of2000,thesalaryagainsttheeligibilityperiodoftheabovetwoallowancesshallbecomputedby

addingthesocialallowanceonthebasisofwhichthepensionissettled.

Thepensionshallbereducedincasesofresignationandthelikeaccordingtothefollowingrates:-

• (5%)iftheageuponpensionpaymentislessthan(45years).

• (2%)from(45years)to(52years).

• Theretirementpensionshallbepayablemonthly.

Eligibility Cases of Temporary Retirement Pension•Terminationoftheinsuredserviceasaresultofbeingexposedtosuchadiseasethatdepletedhissickleaves

(privatesectororcompanieswhicharenotfullyownedbythestate)andhewasnoteligibletoapermanent

pension,thetemporarypensioninthiscaseshallbecalculatedbasedonhiscontributionperiodinthisinsurance

or(15years),whicheverismore,untilherecovers.

• Terminationoftheinsuredperson’sserviceduetobeingfinallyconvictedinafreedomrestrictingpenaltyandhe

wasnoteligibletoreceiveapermanentpension.Inthiscase,thetemporarypensionshallbecalculatedbasedon

thecontributionperiodinthisinsurance,providedthatitshouldnotbelessthan(15years.)Thepaymentofthis

pensionshallbecomedueasfromtheimprisonmentperioddateortheserviceterminationdate,whicheverislater.

Thepaymentshallcontinueevenaftertheexpiryoftheimprisonmentperioduntilthedateofsubjugationtoone

oftheSocialSecurityLaws,ortheeligibilitydateofapermanentpensionortheexpiryoftwoyearsafterthe

imprisonmentexpirydate,whicheverisearlier.

Temporary Pension Calculation MethodThepensionshallbecalculatedmonthlyattherateof(65%)ofthelastmonthlysalaryforthecontributionperiod

of(15years),thenitshallbeincreasedby(2%)foreveryextrayearuptoamaximumrateof(95%)ofthissalary.

Salarymeans(basicsalary+socialallowanceinamaximumamountofKD1500).

Asforthosewhoseserviceintheprivateoroilsectorends,theaveragepensionshallbecalculatedbasedonthe

receivedsalaryduringthelastfiveyears.

Retirement Remuneration Eligibility Cases (Civil)• If the insured’sservice is terminatedandhe isnoteligible toreceivearetirementpension,heshall receivea

retirementremunerationtobepayabletohiminmonthlypaymentsiftheinsuredrequestedpaymentofthesame

withinoneyearfromthedateofservicetermination;anditshallbepayableinonepaymentafteroneyearfrom

thedateofservicetermination.

• Also,aremunerationshallbepayableagainsttheactualcontributionperiodthatexceedstherequiredperiodfortheeligibilityofthemaximumlimitofpension.Theremunerationshallbepayableinonepaymentalongwiththe

retirementpension.

Remuneration Calculation Method• Salaryx12x10%x5forthefirstfiveyears.

• Salaryx12x12%x5forthesecondfiveyears.

• Salaryx12x15%x5forthethirdfiveyears.

• Salaryx12x20%xthenumberofremainingyears.

Retirement Pension Eligibility Cases (Kuwaiti Military Personnel)• Terminationofmilitarypersonnelserviceduetodeathorajudgmentthatprovesthediscontinuedabsenceor

thedismissalforhealthreasons,ortheoccurrenceofdeathortotaldisabilitywithintwoyearsasfromthedate

ofserviceterminationwithoutbeingsubjecttotheprovisionsofthesocialsecuritylaw.

• Terminationoftheinsuredservicebecauseheattainsthelegallyprescribedageforleavingtheserviceorbeing

referredtoretirementwheneverhehasaserviceperiodof(15years).

• Terminationofthemilitarypersonnelserviceforreasonsotherthantheaboveones,wheneverhisactualperiod

ofservicereaches(15years)andheattainstheageof(50years).Ifhedoesnotattainthisageupontheservice

termination,heshouldhaveanactualperiodofserviceof(20years).

Pension Calculation Method for (Kuwaiti Military Personnel)First:Regarding theservice terminationcasesdue to theattainmentof the legallyfixedage,deathorproofof

discontinuedabsenceordismissalforhealthreasonsorreferringtoretirement;andtheageof(45years)uponthe

servicetermination,thepensionshallbecalculatedattherateof(75%)ofthebasicsalary+socialallowanceupto

(KD1500)forthefirst15years+(2%)foreveryextrayearupto(100%)ofthesaidsalary.

Second:Asfortheserviceterminationforotherreasonsorforretirementuponthemilitarypersonnelrequestand

theageisbelow(45years)upontheservicetermination,thepensionshallbecalculatedattherateof(65%)ofthe

saidsalaryforthefirst15yearsplus(2%)againsteveryextrayearinamaximumlimitupto(95%).

Third: Incaseofmilitarypersonnelserviceterminationforhealthreasonsasaresultofaninjuryorifheislostduring

theworkorinconnectionthereof,thepensionshallbecalculatedattherateof(100%)ofthelastassessedsalary

fixedforhisrank.

Forth: Incaseofmilitarypersonnelserviceterminationforhealthreasonsasaresultofan injuryduringmilitary

operationsorwarzones,thepensionshallbecalculatedattherateof(100%)ofthelastassessedsalaryfixedfor

thenextrankfollowinghisrank.

Theretirementpensionshallbepayableformilitaryretiredpersonnelonmonthlybasis.

Eligibility of Retirement Remuneration For (Kuwaiti Military Personnel)• Thebeneficiaryshallbeeligibletoaretirementremuneration inthecaseswherehe iseligibletoaretirement

pensionanditshallbepayableinmonthlypaymentsorinonlyonepaymentasthecasemaybe.

• Also,heshallbeeligibletoreceiveremunerationfortheactualserviceperiodexceedingthenecessaryperiodfor

beingeligibletothemaximumpensionunitanditshallbepaidinonepaymentalongwiththepension

Retirement Remuneration Calculation Method for (Kuwaiti Military Personnel)• Salaryx1.5monthsx5forthefirstfiveyears.

• Salaryx2monthsx5forthesecondfiveyears.

• Salaryx2.5monthsxremainingperiodcountedininsurance.

Retirement Pension Eligibility Cases for (Non-Kuwaiti) Military Personnel Benefiting from the Provisions of Law No. (31) of 1967Theretirementpensionshallbecomedueupontheserviceterminationforoneofthefollowingreasons:

• Deathorjudgmentprovingdiscontinuedabsenceordismissalforhealthreasons.

• Attainingthefixedageforleavingtheservice.

• Incaseofreferringtoretirementprovidedthattheageshallnotbelessthan(45years).

Pension Calculation Method for the abovementioned (Non-Kuwaiti) Military Personnel• Lastmonthlysalaryx(65%)ifthecalculatedserviceperiodaccordingtotheLawNo.(27/1961)islessthan(20years).

• Lastmonthlysalaryx(75%)ifthecalculatedserviceperiodaccordingtotheLawNo.(27/1961)is(20yearsormore).

• Theretirementpensionshallbepayabletotheretirednon-Kuwaitimilitarypersonnelonmonthlybasis.

Retirement Remuneration Calculation Method for the above mentioned(Non-Kuwaiti) Military PersonnelMAretirementremunerationshallbecomedueandpayableinonepaymentforthosewhoseserviceexpiresafter

1/3/1981forreasonsotherthantheabove-mentionedones,attherateofoneandahalfmonthsalaryforevery

serviceyearofthefirstfiveyearscalculatedasperthelawNo.(27/1961)andthenattherateoftwomonths

salaryforeveryyearofthenextfiveyears,andthereafterattherateoftwoandahalfmonthssalaryforevery

extrayear.Thesalaryshouldbethelastmonthlysalaryinadditiontothesocialallowance.

Retirement Pension Eligibility Cases for (Non-Kuwaiti)Military Personnel Not Benefiting from the Provisions of Law No. (31) of 1967• In case of military personnel service termination for reasons resulting from an injury during the work or in

connectionthereof,theretirementpensionshallbecalculatedattherateof(100%)ofthelastassessedsalary

fixedforhisrank.

• Incaseof themilitarypersonnelservice termination forhealth reasonsasa resultofan injuryduringmilitary

operationsorwarzones,theretirementpensionshallbecalculatedattherateof(100%)ofthelastassessed

salaryfixedforthenextrankfollowinghisrank.

Combining Pension and SalaryThe retirementpensioner, including theKuwaiti civil ormilitarypersonnel,maycombinebetweenhis retirement

pensionandhisduesalaryifhejoinedworkwiththeprivatesectorandmetthefollowingconditions:-

• Thepensionershouldhaveanactualserviceperiodnot lessthan(25years).Theretirementpensionerswhose

servicewasterminatedforattainingtheprescribedperiodforquittingtheserviceorreferringtoretirementshallbe

exemptedfromthisprovisionincludingtheeligiblepensionsinaccordancetotheprovisionsofchapterthreefrom

thelaw(ministers,membersoftheNationalAssembly,membersofMuniciplecouncil,Mayors).

• Theretiredpensionershallsubmitthecombinationapplicationwithinthreemonthsfromthedateofjoiningthe

newjob.

Calculation Method of Combination Period upon Expiry• Iftheserviceofthecivilpensioner,whocombinesthispensionwiththesalary,isexpiredforthecombination

period,thepensiondueforhimbeforethecombinationshallbeincreasedattherateof(2%)ofsalaryaverage

foreveryyearofthecombinationperiod,andheshallbepaidthepensionandtheincreaseasfromtheday

followingtheservicetermination.Iftheactualserviceperiodinwhichhereceivedaretirementpensionandthe

combinationperiodreachedmorethan(30years),heshallbeeligibletoaretirementremunerationtobepayable

inonepaymentfortheserviceperiodexceedingthislimit.

• Asforthemilitarypensioner,heshallreceivearetirementremunerationupontheexpiryofthecombinationperiod

tobepayabletohiminonepaymentprovidedthathesubmitsanapplicationforpayment.

• If thecombinationperiod reached theperiod thatentitleshim to receivea retirementpension, then thecivil

retirementpensionshallbecomedueforhimanditshallbesubjecttothecombinationrulesofthemilitaryand

civilpensionscalculatedon thebasis that the totalmilitarypension inaddition to (2%)of themonthlysalary

againstwhichthecivilpensioniscountedforeveryyearofthedueyearsshouldnotexceedthelastpension.

Commutation by Retired PensionerThe civil andmilitary, retired pensioner,may commute a quarter of the retirement pension, in amaximum limit,

providedthatthenetpension,afterdeductingthedebtpremiums,shallnotbelessthanhalfthesalaryontheabasis

ofwhichthepensioniscalculatedanditshallbepayableasperthefollowingperiods,asthepensionerselects:

• (5years)

• (10years)

• (15years)

TheCommutationamountshallbeaspertheequivalentDinarvaluetotheretiredperson’sageasonthedate

offilingtheapplicationaccordingtotheattachedschedule.

Commutation During ServiceTheinsuredorbeneficiary(military)mayfilethecommutationapplicationduringtheserviceandforaperiodofonly

fiveyearsaccordingtothefollowingconditions:-

• Heshallhavetherighttotheretirementpensiononsuppositionoftheinsuredresignationorreferenceofthe

militarypersonneltoretirement

• Theparttobecommutedshallnotbelessthan(KD20/-)andnotmorethanthecommutablepart.

Age in Commutation Application Date

Commutation Period

5 Years 10 Years 15 Years

KD Fils KD Fils KD FilsUp to 40 51 671 89 674 117 269

41 51 640 89 545 116 97342 51 605 89 397 116 63943 51 563 89 228 116 26644 51 515 89 038 115 85145 51 460 88 826 115 39346 51 400 88 593 114 89147 51 332 88 334 114 34148 51 256 88 050 113 74049 51 174 87 740 113 08750 51 083 87 403 112 37851 50 984 87 034 111 60952 50 757 86 196 109 87353 50 487 85 206 107 84354 50 166 84 036 105 48155 49 782 82 657 102 74656 49 324 81 037 99 60357 48 777 79 141 96 02858 48 127 76 941 92 00859 47 356 74 410 87 55460 46 448 72 105 82 70061 45 937 70 97662 45 385 69 61863 44 791 68 02664 44 470 66 37965 44 466 64 688

FAMILY PENSION

FAMILYPENSION

Eligible Persons to The Pension of Dead Insured, Beneficiary or Retirement Pensioners and those who are subject to Chapter Five ProvisionsSocial securitymeans safety and stability for the citizen and his familymembers during his old age, disability,

sicknessorintheeventofhisdeath.

Consequently,thesocialsecuritylawgivesaretirementpensionincaseofthedeathoftheinsuredperson,themilitary

beneficiaryorthepensionerwhichcanhelpthemembersofhisfamily,afterhisdeath,toaffordthecostofliving.

Inthisleafletwewilldealwiththefollowing:-

1. Eligiblepersonstothepension.

2. Theireligibilityconditions.

3.Requireddocuments.

4. Pensionsuspensionandterminationcases.

Eligible Persons in the Date of DeathIftheinsured,theretirementpensionerortheinsuredpersonwhodieswithintwoyearsfromtheservicetermination

dateorthefamilyofalostperson(malesandfemales),thefollowingpersonswhatevertheirnationalitiesareshall

beeligibletohispension:

1. Thehusbandorwidows.

2.Children.

3. Parents.

4.Brothersandsisters.

5. Sons&Daughtersoftheson.

Eligible Persons Eligibility Conditions• Itisaconditionthatthehusbandshallbeunabletogainhislivingandthisshallbeprovedbyvirtueofaletter

fromtheMedicalcommitteeoftheInstitution.

• Itisaconditionfortheeligibilityofthe(son/brother/andgrandson)heshouldnothaveattainedtheageof26

years,butthefollowingshallbeexemptedfromthisprovision:-

1. Thepersonwhoisunabletoearnhisliving.

2. Thestudentinpost-secondaryschoolstageuntilheattainstheageof26yearsprovidedthatthepaymentofthe

relevantshareforthosewhoreachthisagetilltheendoftheacademicyearshallbecontinued.

3. Theonewhoobtainsauniversitydegreeortheequivalentorevenafterthatprovidedthatheshouldnothave

reachedtheageof28yearsandhedidnotjoinworkorexercisessuchanactivityinwhichheissubjecttothe

provisionsofChapterFive.

• Fortheeligibilityofthe(daughter/sister/granddaughter),itisaconditionthatsheshouldbeunmarried(single

/divorced/widow).

• Forthefather’seligibility,itisaconditionthatheshallprovehisdependenceonthepensionofhisdeceasedsonordaughter.

• Formother’seligibility,itisaconditionthatsheshouldbedivorcedorwidow.

• It isacondition for theeligibilityof thebrothersandsisters that theyshouldprove that theydependon the

pensionoftheirdeceasedbrotherduringhislifeinadditiontosecuringthechildreneligibilityconditions.

• Itisconditionalfortheeligibilityofthegrandsonsandgranddaughtersthattheirfathershouldhavediedbefore

thegrandfatherordiedwhilehewasstilleligibletothepensionofhislatefather.

Eligible Persons After Death Date1. Thedaughter,mother,andsister,iftheyaredivorcedorwidowedforthefirsttimeafterthedeathoftheinsured

personorthepensioner.

2. Thesonandbrother, ifhebecomesdisabledafterthedeathoftheinsuredpersonorthepensioner,shallbe

eligible(bearinginmindthattheireligibilitywillnotaffectthesharesofothereligiblepersons).

Statement of Required Documents from Eligible Persons1.Copyofdeathcertificate(dulyattestedbythecompetentgovernmentalauthoritiesintheissuingcountryoutside

KuwaitandtheembassyoftheStateofKuwait).

2 CopyofLimitationofSuccession(dulyattestedbythecompetentgovernmentalauthoritiesintheissuingcountry

outsideKuwaitandtheembassyoftheStateofKuwait).

3.Copyofbirthcertificateorageassessmentcertificateforthewidoworhercivilcardifsheismorethan(55yearsold).

4. Copyofchildrenbirthcertificates(malesandfemales)andverifictionofdisabilitycertificate(incaseofhandicappedchild).

5.CopyofsalarycertificatesfortheworkingsonsiftheyarenotregisteredwiththePublicInstitutionForSocialSecurity.

6. Verifictionofdisabilitycertificateforthesonswhoareabove26years(ifany).

7. Acertificateshowingthewidow`saccountnumberintheKuwaitibanks.

8.CopyofnationalitycertificateforaKuwaitiwidowwomanorpassportorcivilcardforthenon-Kuwaitis.

9.Certificateson theaccountnumbersof adult children if theyareeligible toacertain share in thedeceased

pension in addition to certificatesonaccount numbersof theminor children form theguardian’s side if the

guardianshipisforapersonotherthanthePublicAuthorityforMinorsAffairs.

10. Copiesofmarriagecontracts fordaughtersordivorcecertificatesaswellas theverifictioncertificatesand

courtjudgmentsthatrulesbymarriageordivorce(ifany).

11. Fullfamilyaddressandtelephonenumber.

12. Verifictionofstudycertificateforthesonabove26yearswhostudiesinapost-secondaryschoolstage.

13. AcopyofCivilIDcardforalleligiblepersons.

14. In caseof deathof a non-Kuwaiti pensioner, theguardianship judgmenton theminor children shouldbe

attachedprovidedthatitshouldbeaccompaniedwiththeexecutiveformofthecourtsofKuwait.

15. Completingthepreparedformsduringanyfoloow-upbyoneof theheirsandwhichareavailablewiththe

PublicInstitutionforSocialSecurity,namely:

a) Statementofheirs`socialstatus.

b) PaymentapplicationonFormNo.(201)

c) Adeclarationonthenon-existenceofanychildrenotherthanthosementionedinthelimitationofsuccession

inadditiontoindicatingwhethertherewerechildrenwhodiedbeforethedeathofinsuredorpensioner.

Death GrantThedeathgrantshallbepayableattherateofdoublethesalaryorincomebracketortheretirementpensionin

additiontodoublethesupplementarypension(ifany).

To Whom should Death Grant be Paid?Itshallbepayabletothosewhoaredeterminedbytheinsuredorpensioner(maleorfemale)whilehewasalive.If

theeligiblepersontothedeathgrantisnotdetermined,itshallthenbepayableasfollows:

1. Incaseofthedeathoftheinsured,itshallfirstbedueforhisfather,thenthewidoworwidows,thenhismother

andthereaftertheeldersonwhoisnoteligibleinthepension.

2. Inthedeathoffemales,itshallfirstbedueforthehusband,thentheeldersonwhoisnoteligibleinthepension,

thenthefatherandthenthemother.

3. Intheabsenceoftheabovepersons,itshallthenbepaidtotheeligiblepersonseachintherateoftheireligibleshare

inthepension.Intheeventofnoeligiblepersons,itshallbepaidtothelegalheirsthroughtheMinistryofJustice.

Minimum limit of the ShareInall eligiblecases, thedueshare for theeligiblepersonshall notbe less than theminimum limit fixed forhis

category(regardlessoftheretirementpensionamountorthesalarybeforedeath)anditshallbeasfollows:-

• (KD242)forthewidowandhusband.

•(KD190)forthefatherandmother.

•(KD122)forchildren,grandsonsandgranddaughters.

•(KD122)forbrothersandsisters,ordoubleeligibleshare,whicheverisless.

Combination Rules Theeligiblepersonmaycombinetheretirementpensionandtheshare,evenifitismultiple,inanamountwhich

shallnotexceedthelegallyprescribedmaximumlimit(KD910).However,thefollowingshallbeexemptedformthe

applicationofcombinationrules:-

1. Thepersonwhoisunabletogainliving.

2.Childreniftheyareeligibletotheirfather’spension.

3. Thewidowifshecombinesherretirementpensionandherduesalaryfromherhusband.

TerminationTheshareshallbeterminated

1.Upontheeligibleperson`sdeath.

2.Whenthewidowbecomeseligibleinthepensionofherlasthusband,hershareinthepensionofherprevious

husbandshallbeterminated.

3.Whenthe (son/brother/grandson)attainstheageof26years ifhe isnotenrolledasastudent inapost-

secondaryschoolstageandabletogainhisliving.

Cases of share suspension and Re-Payment• Thesharepaymentshallbesuspendedinthefollowingcases:

1. Iftheeligiblepersonjoinswork,exceptthewidow.

2.Marriageoffemales(andamarriagegrantshallbepaidtoeachofthedaughter,sister,andgranddaughterupon

theirfirstmarriageandafterthedeathoftheinsuredpersonortheretirementpensioner)attherateofsixmonths

ofthedueshare.

• Theshareshallbere-paidinthefollowingcases:

1. Ifafemaleisdivorcedorwidowed.

2. Endofservice.

Indebtedness1. Deceased Person’s Legacy Indebtedness: Uponthedeathoftheinsuredandpensioner(maleorfemale),thesoundnessofthesalary,retirementpension

andthedueincrementsthereto,whichhewasreceivingduringhislife,shallallbeinvestigated.Ifitisprovedthat

theyareincorrect,thepensionshallbere-calculatedandthisshallresultinanindebtednessagainsttheceased

whichshallbedeductedfromtheeligiblepersonswithinthelimitofthequarteroftheircorrespondingshares.

2. Indebtedness of Pensions or Shares: The Public Institution for Social Security shall be informed and notified of (the death of the eligible person, the

marriageoffemalesandwhenoneoftheeligiblepersonjoinsawork)sothatnodebtscanbeincurredbytheeligible

persons,bearinginmindthataset-offwillbemadebetweenthedueportionsfortheremainingeligiblepersonsand

thearisingdebt,withoutbreachtotherightofothereligiblepersonstoclaimthepersonwhoreceivedsuchamounts.

PenaltiesWhoeverintentionallyprovidesthePublicInstitutionforSocialSecuritywithincorrectinformationorwillfullyrefrains

fromgivingtheinformationprovidedforinthelawforthepurposeofobtainingfundsfromthePublicInstitutionfor

SocialSecuritywithouthavingtherighttoobtainshallbepunishedwithimprisonmentforaperiodnotexceeding

onemonthorwithpenaltyofnotmorethan(KD225)orwitheitherofthetwopenalties.

Martyrs PensionsThesearecertainexceptionalrulesforthecalculationanddistributionofmartyrspensionsinadditiontothespecial

rulesofcombiningtheduesharesfrommartyrsandtheothershares.

Complaints and Litigation ProceduresNolegalactionmaybefiledagainstthePublicInstitutionforSocialSecurityunlesstherelevantrightisclaimedfor

inwriting,thenbyfilingacomplaintagainsttheissuedresolutionontherejectionoftheclaimtothecomplaints

committeeatthePublicInstitutionforSocialSecurityinaccordancetothedateslegallyprescribed.

PrescriptionTherightsofeligiblepersonstowardsthePublicInstitutionforSocialSecurityshallbeforfeitedbythelapseoffive

yearsfromtheeligibilitydate.

Distribution RatesSharesshallbedistributedtoeligiblepersonsinthepensionasperthefollowingschedule:

ScheduleNo.(1)FixingtheSharesofEligiblePersonsintheDeathoftheInsuredorPensionerNo. EligiblePersons HusbandorWidows Children Parents Brothers1 Eligiblewidoworhusbandonly. 3/42 Morethanonewidow. FullPension3 Widoworeligiblehusbandwithonechild. 1/2 1/24 Morethanonewidowwithonechild. 2/3 1/35 Widoworeligiblehusbandwithmorethanonechild. 1/3 2/36 Morethanawidowwithmorethanonechild. 1/2 1/27 Widoworeligiblehusbandwithbothparentsoroneofthem. 2/3 1/38 Morethanawidowwithbothparentsoroneofthem. 3/4 1/49 Widoworwidowsoreligiblehusbandwithbrotherorsister. 3/4 1/410 Widoworwidowsoreligiblehusbandwithbrothersandsisters. 2/3 1/311 Widoworeligiblehusbandwithonechild,parentsoroneofthem. 1/2 1/3 1/612 Morethanawidowwithonechild,bothparentsoroneofthem. 1/2 1/3 1/613 Widoworwidowsoreligiblehusbandwithmorethanonechild,bothparentsoroneofthem. 1/3 1/2 1/614 Widoworeligiblehusbandwithonechildandbrotherorsisterormore. 1/2 1/3 1/615 Morethanonewidowwithonechildandbrotherorsisterormore. 1/2 1/3 1/616 Widoworwidowsoreligiblehusbandwithmorethanonechildandbrotherorsisterormore. 1/3 1/2 1/617 Widoworwidowsoreligiblehusbandwithonechild,bothparentsoroneofthemandbrotherorsisterormore. 1/3 1/3 1/6 1/618 Widoworeligiblehusbandwithmorethanonechildbothparentsoroneofthemandbrotherorsisterormore. 1/3 1/2 1/619 Widoworeligiblehusbandwithbothparentsoroneofthemandbrotherorsister. 1/2 1/3 1/620 Widoworeligiblehusbandwithbothparentsorofoneofthemandbrotherorsisterormore. 1/2 1/4 1/421 Morethanonewidowwithbothparentsorofoneofthemandbrotherorsisterormore. 2/3 1/6 1/622 Onechildonly. 1/223 Morethanonechild. Fullpension24 Onechildwithbothparentsoroneofthem. 1/2 1/325 Morethanonechildwithbothparentsoroneofthem. 3/4 1/426 Onechildwithbrotherorsister. 1/2 1/427 Onechildwithmorethanbrotherorsister. 1/2 1/328 Morethanonechildwithbrotherorsister. 3/4 1/429 Morethanonechildwithmorethanbrotherorsister. 2/3 1/330 Onechildwithbothparentsoroneofthemandbrotherandsister. 1/2 1/3 1/631 Onechildwithparentsoroneofthemandbrotherandsisterormore. 1/2 1/4 1/432 Morethanonechildwithbothparentsoroneofthemandbrotherandsisterormore. 2/3 1/6 1/633 Bothparentsoroneofthem. 1/234 Parentsoroneofthemandbrotherorsister. 1/2 1/435 Bothparentsoroneofthemandbrotherorsisterormore. 12 1/236 Brotherorsister. 1/337 Brotherorsisterormore 1/2

ThisscheduleisamendedbytheLawDecreeNo.(127)of1992whichisimplementedasfrom1/5/1993.

Distribution RatesSharesshallbedistributedtoeligiblepersonsinthepensionasperthefollowingschedule:

ScheduleNo.(1)FixingtheSharesofEligiblePersonsintheDeathoftheInsuredorPensionerNo. EligiblePersons HusbandorWidows Children Parents Brothers1 Eligiblewidoworhusbandonly. 3/42 Morethanonewidow. FullPension3 Widoworeligiblehusbandwithonechild. 1/2 1/24 Morethanonewidowwithonechild. 2/3 1/35 Widoworeligiblehusbandwithmorethanonechild. 1/3 2/36 Morethanawidowwithmorethanonechild. 1/2 1/27 Widoworeligiblehusbandwithbothparentsoroneofthem. 2/3 1/38 Morethanawidowwithbothparentsoroneofthem. 3/4 1/49 Widoworwidowsoreligiblehusbandwithbrotherorsister. 3/4 1/410 Widoworwidowsoreligiblehusbandwithbrothersandsisters. 2/3 1/311 Widoworeligiblehusbandwithonechild,parentsoroneofthem. 1/2 1/3 1/612 Morethanawidowwithonechild,bothparentsoroneofthem. 1/2 1/3 1/613 Widoworwidowsoreligiblehusbandwithmorethanonechild,bothparentsoroneofthem. 1/3 1/2 1/614 Widoworeligiblehusbandwithonechildandbrotherorsisterormore. 1/2 1/3 1/615 Morethanonewidowwithonechildandbrotherorsisterormore. 1/2 1/3 1/616 Widoworwidowsoreligiblehusbandwithmorethanonechildandbrotherorsisterormore. 1/3 1/2 1/617 Widoworwidowsoreligiblehusbandwithonechild,bothparentsoroneofthemandbrotherorsisterormore. 1/3 1/3 1/6 1/618 Widoworeligiblehusbandwithmorethanonechildbothparentsoroneofthemandbrotherorsisterormore. 1/3 1/2 1/619 Widoworeligiblehusbandwithbothparentsoroneofthemandbrotherorsister. 1/2 1/3 1/620 Widoworeligiblehusbandwithbothparentsorofoneofthemandbrotherorsisterormore. 1/2 1/4 1/421 Morethanonewidowwithbothparentsorofoneofthemandbrotherorsisterormore. 2/3 1/6 1/622 Onechildonly. 1/223 Morethanonechild. Fullpension24 Onechildwithbothparentsoroneofthem. 1/2 1/325 Morethanonechildwithbothparentsoroneofthem. 3/4 1/426 Onechildwithbrotherorsister. 1/2 1/427 Onechildwithmorethanbrotherorsister. 1/2 1/328 Morethanonechildwithbrotherorsister. 3/4 1/429 Morethanonechildwithmorethanbrotherorsister. 2/3 1/330 Onechildwithbothparentsoroneofthemandbrotherandsister. 1/2 1/3 1/631 Onechildwithparentsoroneofthemandbrotherandsisterormore. 1/2 1/4 1/432 Morethanonechildwithbothparentsoroneofthemandbrotherandsisterormore. 2/3 1/6 1/633 Bothparentsoroneofthem. 1/234 Parentsoroneofthemandbrotherorsister. 1/2 1/435 Bothparentsoroneofthemandbrotherorsisterormore. 12 1/236 Brotherorsister. 1/337 Brotherorsisterormore 1/2

ThisscheduleisamendedbytheLawDecreeNo.(127)of1992whichisimplementedasfrom1/5/1993.

INSPECTION ON EMPLOYERS

INSPECTION ON EMPLOYERS

INSPECTION

Inspection on EmployersInspection ObjectiveTheinformationprovidedbytheemployersandinsuredpersonsinrelationtotheparticularsandsalariesofthe

employeesconstitutesabasicdatabaseindeterminingtherightsandobligationsconnectedwithsocialsecurity

lawswhichdirectlyaffectthepartiesofthisequation:

(the employer, the insured and the Public Institution for Social Security).

Consequently, it is sometimes necessary for thePublic Institution forSocial Security to doproper verification of the

soundnessandcorrectnessoftheinformationprovidedtoPIFSSbyapplyingjudicialinspectionproceduresinorderto

ensurethesoundnessofsocialsecuritysystemsapplicationandtopreservetherightsofallrelatedparties,particularlythe

employers,andinsuredpersonsononesideaswellastheprotectionofthePublicInstitutionForSocialSecurityprovident

fundsagainsttheeffectsofthefalseinformationthatiscontrarytotherealfacts,ontheotherside.

Resolution No. (5) of 1977Therefore,itisnotstrangethattheresolutionontheprovisionsandproceduresofjudicialinspectionconstitutesoneof

themainresolutionspromulgatedsincethefirstbeginningsfortheimplementationofthesocialsecuritylawprovision,

namelytheResolutionNo.(5)of1977,whichisimplementedasfrom14/8/1977(thedateofitspublicationintheOfficial

Gazette).Belowarethemostimportantclausesofthisresolution:

Article (1)TheemployeesofthePublicInstitutionforSocialSecuritywhoarehavingtheauthorityofjudicialcheckupshallhavethe

righttocontroltheimplementationoftheprovisionsofthesocialsecuritylawreferredtohereinaboveandtheimplementing

resolutionsthereto;andtheyshallbeentitledinthisrespect:-

1. To enter thework places during the officialworking hours,without prior notice, to carry out the necessary

investigations.

2. Toperusethebooks,records,papers,documents,andfilesrelatedtotheimplementationofthelaw.

3. Toverifythesuspensionofthecertificatewhichverifiestheemployer’scontributionpaymenttotheinstitution.

4. Toverifythattheemployerisregisteringtheemployeesworkingforhim,whoaresubjecttothelawprovisions,

withthePublicInstitutionForSocialSecuritywithintendaysasfromthedateofjoiningworkwithhim.

5. Tocarryoutthenecessaryinvestigationsandhearthestatementsoftheemployerorwhorepresentshimandthe

employeesinhisserviceandtoproveallthisinwriting,ifnecessary.

6. Preparereportsontheinspectionresultsandtoreferanycrimearisingthereofwhichisviolatingtheprovisions

ofthelawtothepublicprosecutionorthecompetentinspector.

Article (2)TheemployeesofthePublicInstitutionforSocialSecuritywhohavetheauthorityoflegalcontrolshallcarrytheidentity

cardthatprovestheirofficialcapacityandtheyshallpresentthesamewhenevertheyarerequestedtodoso.

Required Compliance from Employers1. To comply with providing the joining and termination of service information of the employees and salary

adjustmentswithinthelegallyprescribeddates.

2.Maintainthefinancialrecordsrelatedtoemployeessalaries.

3.Maintain the necessary administrative records for the employees which are consisting of the appointment

decisions or employment contracts and the subsequent administrative resolutions aswell as the penalties,

leaves,salaryincrementsandservicetermination.

4. Enablingthejudicialinspectortohaveaccesstoalltheabove-mentionedrecordsanddocuments,uponhisrequest.

5.Clearlyspecifytheaddressesoftheemployer’splaceofbusiness,whethertheheadofficeortheotherbranches

inadditiontonotifyingthePublicInstitutionforSocialSecuritywithanysubsequentamendmentswhichmay

occurinthefirmaddresses.

General Directions• ThePublic InstitutionforSocialSecuritymaycarryoutthe judicial inspectionproceduresatanytimewhether

beforeoraftertheregistrationprocessandevenaftertheendofserviceoftheinsured.

• ThePublicInstitutionforSocialSecuritymayregisteranymanpowerwhichissubjecttothelawbasedonits

investigationseveniftheemployerrefusedtoprovidethejoiningnotices.

• Thenon-registrationofthesubjectmanpowertothelaw,thedelayoffilingsuchapplicationsandthecontribution

throughfalsesalariesshallresultinpenaltiesandextraamountstobebornebytheemployer.

Thisisinadditiontothedelayofcompletingtherelevanttransactionsorsubmittingthecertificatesrequiredto

beprovidedtocertaincompetentauthoritiesoutsidethePublicInstitutionforSocialSecurity.

• ThePublicInstitutionforSocialSecuritymaycarryoutthejudicalinspectionproceduresontheemployersand

verifythesoundnessoftheregisterationofhisemployeesincaseofirregularityortheemployerhasstopped

contributionspaymentduetotheInstitution.

INSURANCE SYSTEM AGAINST UNEMPLOYMENT

UNEMPLOYMENT INSURANCE

Insurance System against UnemploymentInpromotingforthecomprehensivenesstocovertherisksthatcitizensencountersuchastheriskofunemployment

which the need for its coverage arose in the light of the global financial crisis and its impact on the State of

Kuwaitespeciallyonthenon-govermentalsectors,andinconsistentwiththeeffortsoftheStatetoencouragethe

nationallabortodirectthemonworkinginthosesectorsandtoencouragethosesectorsonattractingthatlabor,

theUnemploymentInsuranceLawisissuedinordertoachievetheeconomicsecurityandsocialstabilityforthe

categoriesaddressedwithitsprovisionswhichwillpositivelyreflectontheeconomyandworkcompositioninthe

Stateandincludinginotherareas.

ObjectiveToprovideanadequateincomewhichenablestheinsuredpersontofulfillhisessentiallivingrequirementsuntilhe

findsasuitablejobopportunity.

The Subjects to the SystemTheinsuredpersonsworkingintheprivateortheoilsectorsasof1/5/2013.

Monthly ContributionsTheinsuredpersonshallbearmonthly(0.5%)+theemployershallbearmonthly(0.5%)+thepublictreasuryshall

bear(0.5%)ofthetotalsalaryoftheinsuredpersoninthebasicandsupplementaryinsurance.

ThosecontributionsarepaidtotheInstitutioninaccordancetotheprovisionsandinthelegallyprescribeddates

forpaymentsofduecontributions.

Cases for the Eligibility of the Unemployment CompensationFortheentitlementofthecompensation,itisrequiredthattheinsuredpersonshouldfulfillthefollowingrequirements:

1-Theageshallnotbelessthantheageof(18)yearsandnomorethantheageof(60)years.

2-Shouldcomplete thedeterminedperiod for theentitlementof thecompensation inaccordancewithwhat is

providedlegally;tobeatleast6consecutivemonthspriortotheentitlementofthecompensationineverytime

itisentitlement.

3-Shouldbeabletowork.

4-Shouldn’tbeentitledtoretirementpensiondisbursement.

The Amount of Unemployment Compensation• Theinsuredpersonisentitledtoacompensationamountingto(60%)ofthesalarywhichiscalculatedonthe

basisofthebasicretirementpensioninaccordancewiththeprovisionsofArticleNo.(19)fromthesocialsecurity

lawincludingtheentitledpensioninhisaccountinthesupplementaryinsuranceassuminghisentitlementinthe

dateofservicetermination.

• Including to this compensation, the increments the state disburses to the employees in the private and oil

sectorsincludedtotheirsalarieswithoutbeingsubjectedtoanysocialsecuritylaw.

• It isnotpermittedtoseizeordisclaimthecompensationandthe includedincrementsto itunlesstofulfillan

expensesentencedbythejudiciaryandshallnotexceedthequarter.

The Deadline of Unemployment Compensation Entitlement and the Numberof Times for its EntitlementThecompensationisduefromthe8thdayofserviceterminationiftheinsuredisregisteredattheManpowerand

GovernmentRestructuringProgramwithin30daysfromthedateofserviceterminationorelsehisentitledtothe

compensationisfromthedateofapplying.

The disbursement will be for a period of (6 months) each time of its entitlement as follows1.The insuredisentitledforthecompensationforthefirsttimeif thecalculatedcontributionperiodwas inthat

determinedinsuranceinaccordancetothelawatleast(6consecutivemonths).

2.Theinsuredisentitledtothecompensationforthe2ndtimeifthecalculatedcontributionperiodintheinsurance

isatleast(18months).

3.Theinsuredistothecompensationforthe3rdtimeifthecalculatedcontributionperiodinthatinsuranceisat

least(36months).

Cases of the Unemployment Compensation Disbursement suspensionThecompensationdisbursementshallbesuspendedinthefollowingcases:

1-Theinsuredpersonrejectedtojointhesuitableworkwhenavailableforhim.

2-TheinsuredpersonrejectedtojoinatrainingcourseofferedbytheManpowerandGovernmentRestructuring

Program.

3-Theinsuredpersonisself-employed.

4-Theinsuredpersonjoinsaworkforotherparty.

5-Notcommittedtothespecifieddatesforfollow-upsorrefusedtoprovidetherequireddocuments.

ThecompensationisdisbursedinthecaseprovidedinitemNo.(4)asthedifferencebetweenthecompensation’s

amountandthewageifitislessthanthecompensationandsofortherestoftheentitlementperiod.

Inallcases,therightinthecompensationdisbursmentreturnswhenthereasonforthesuspensionisclearedfor

theremainingperiodofentitlement.

Cases when the Unemployment Compensation Disbursement is Forfeited Theinsuredperson’srightinthecompensationdisbursementisforfeitedinthefollowingcases:

1-Ifherejectedtojointheappropriateworkwhichisavailableforhimtwice.

2-IfherejectedtojoinatrainingcourseprovidedbytheManpowerandGovernmentRestructuringProgramtwice.

3-Ifheisentitledtoaretirementpension.

4-IfheisnotregisteredatManpowerandGovernmentRestructuringProgramwithin(6months)fromthedateof

servicetermination.

General RegulationsThecompensationprescribed in this lawshallnotbecombinedwithanyotheramountswhichareperiodically

providedbytheState’sPublicTreasury.TheinsuredpersonisobligedtonotifytheInstitutionandtheentitywhich

disbursesthementionedamountstospecifywhatshallbeexcluded.

Penalties Withoutprejudicetoanysevererpenaltyprovidedbylawother,whoeverprovideswithfalsedataforthepurpose

ofobtainingthecompensationprovidedinthislawshallbepunishedbythepenaltiesprovidedinArticleNo.(119),

(120)and(122)fromthereferedSocialSecurityLaw,andtheprovisionsofArticleNo.(124)shallapplyregarding

thefinesandtheawardedamountsforviolatingtheprovisionsofthislaw.

THE ENTITLED PENSIONSDUE DISABILITY

THE ENTITLED PENSIONSDUE DISABILITY

DISABILITYPENSIONS

The Entitled Pensions Due to DisabilityIn 29/5/2010, LawNo. (8) of 2010 concerning the rights of personswith disability beganoperating. The Law

includesprovisionstodeterminepensionsforthedisabledandforthepersonsassignedtotakecareofthemin

accordancewiththerulesandregulationssetforthhereinandimplementedthereto.Providedbelowasummaryof

theprovisionsofthepensionswithexcerptsofthereferredtoLawNo.(8)of2010:

The determined pension for the disabled person in accordance to ArticleNo. (41) of the Law:Thedisabled insuredpersonorbeneficiary is entitled toa retirementpension inaccordancewith the following

provisions:

• Thedisabilityshouldbepermanentormediumorsevereandbeprovedbythedecisionofthetechnicalcommittee

inthePublicAuthorityfortheDisabled.

• Thecalculatedcontributionperiodintheinsurancereachesatleast15yearsformalesand10yearsforfemales.

• Theretirementpensioniscalculatedby(100%)fromthesalaryinthebasicinsurance,andthesupplementary

pensioniscalculatedinaccordancewiththepublicregulationssetforthinthismatter.

• Attainingacertainageisnotrequiredfortheentitlementofthepension.

The determined pension for the disabled person unable to work in accordancewith Article No.(43) from the Law:• Thedisabledpersonwhoisunabletoworkisentitledtoadisabilitypensioninaccordancewiththetermsand

conditionsissuedbyaresolutionfromthePublicAuthorityfortheDisabled,andtheInstitutionwilldisburseit

afteritisquantifiedbytheAuthoritytowhomtheentitlementtermsapplies.

• Thepensionshallnotbecombinedwithanyallocations,orotherpensionsandwhichever isgreaterwillbe

disbursed.

The determined pension for whom is assigned to take care for a disabledin accordance with Article No. (42) from the Law:1.Theinsuredpersonorbeneficiarylegallyassignedtotakecareforadisabledpersonisentitledtoaretirement

pensioninaccordancewiththefollowingprovisions:

a) Thecontributionperiodsshouldattainatleast(20)yearsformalesand(15)yearsforfemales.

b) ThedisabledpersonshouldbeKuwaitiortowhoaresubjugatedtotheLaw.

c) Thedisabilityshouldbepermanentormediumorsevere.

d) Thepersonentrustedwiththecaremustbeabletoprovidesuchcareandassumeitsaffairs.

e) 2jointyearsshouldpassonthemarriagefromthedateofendofserviceincaseofrequestingthedisbursement

duetohusbandorwife’sdisability.

f) Thedisabledpersonorhisparentsorhisguardianorhiscuratorasthecasemaybeacknowledgesthatthe

applicantforthedisbursementistheonewhowilltakecareofhim.

g) Theapplicantshouldberesidingwiththedisabledinasharedresidence.

2.Theretirementpensioniscalculatedintheamountof (100%)fromthesalary inthebasic insurance,andthe

supplementarypensioniscalculatedinaccordancetothedeterminedgeneralregulationsinthismatter.

ItisworthmentioningthatthepensionreferredtoisapplicablewiththeprovisionsofSocialSecurityLawunless

notspecificallyprovidedforinaspecialverdict.

Excerpts From Law No. (8) of 2010 Regarding the Rights of Persons with Disability(*)Article (1):Inapplicationoftheprovisionsofthislaw,thefollowingtermsshallbearthemeaningsprovidedagainsteach:

1.APersonwithDisability:Eachpersonsufferingfromtotalorpartialillnessesleadingtodeficiencyinhisphysical,

mentalorsensationalabilities,whichmaypreventhimfromsecuringhislivingrequirements,orfullyandeffectively

participatinginthesociety,equallywithothers.

2.CompetentTechnicalCommittee:Thepartywhichtheformationandcompetencesshallbedeterminedbya

resolutionfromtheAuthority,andconsistsofateamofspecialistsintheareaofdisability.

3. TheAuthority:ThePublicAuthorityoftheDisabled.

4.HigherCouncil:HigherCouncilofthePublicAuthorityoftheDisabled.

5.BoardofDirectors:BoardofDirectorsofthePublicAuthorityoftheDisabled.

6.Chairman:ChairmanoftheHigherCouncilofthePublicAuthorityoftheDisabled.

Article (2):TheprovisionsofthislawshallapplytoKuwaitiswithdisability,aswellasthechildrenofKuwaitifemalefromanon-Kuwaiti,withinthelimitsofhealthandeducationalcare,andjobrightssetforthinthislaw.

TheAuthoritymayresolvetogiveeffecttocertainprovisionsthereoftonon-Kuwaitiswithdisability,inaccordance

withthetermsandcontrolsitdeemsappropriate,upontheapprovaloftheHigherCouncil.

Article (3):Anon-KuwaitipersonfromaKuwaitimother,withdisabilitysincebirth,shallbetreatedasKuwaitiforlife,underaresolutiontobeissuedbytheMinisterofInterior,inaccordancewithLawNo.(21)of2000,regarding

amendingcertainprovisionsofAmiriDecreeNo.(15)of1959regardingKuwaitiNationalityLaw..

Article (25):Careforpersonswithdisabilityshallbeprovidedbymother,followedbyfather,followedbyhusband/wife,asthecasemaybe,aslongastheyarecapableofprovidingsuchcareandhandleitsrequirements.Ifitis

notedthatsuchcareisunavailable,oneofhisrelativesresidinginKuwaitshallbeentrustedtoprovideit,provided

thatheiscapableofassumingtheresponsibilityofcaringforthosewithdisability,maintainsuchcareandsupervise

hislivingaffairs,asperthefollowingorder:children,childrenofthechildren,andbrothersandsisters.Incaseof

several individualsofonecategory,theyshallselect,amongthemselves,theonewhocaresforthepersonwith

disability,whilenotifyingthesupervisoraccordingly.

However,iftheyfailtoagreeamongthemselves,andnooneofferstoassumecare,theAuthorityshallraisethe

mattertothecompetentcourttoassignoneoftherelativesreferredto,orothers,tocareforthosewithdisability,

ordecidehisresidenceinasocialcarehouse,asthecaseandcircumstancesmaybe.

Article (28):TheAuthoritymay request thecourt tochange thepersonassigned toprovidecare,or refer thepersonwithdisabilitytoacarehouseoftheMinistryofSocialAffairsandLabor,ifneeded.

Article (29): Amonthlyallocationshallbedisbursedtothepersonwithdisabilityuptotheageof(18)years,ofwhichtheamountshallbedeterminedbytheAuthorityaccordingtothereportoftheCompetentTechnicalCommittee,

andrelevanttothetypeanddegreeofdisability.Disbursementofsuchallocationshallcontinueifuniversitystudy

continuesuptotheageoftwentysix.Also,anon-workingwomancaringforapersonwithseveredisabilityshall

beentitledtoamonthlyallocationinaccordancewiththetermsandcontrolstobesetforthbytheAuthority.

Disbursementof themonthly allocation shall beceased in theeventof full cure fromdisability, according to a

certificatefromthecompetentcommittee.

Article (30):Unlessotherwisestipulated,theprovisionsofthefollowingarticlesofthischaptershallapplytothepersonswithsevereandmediumdisability.

Article (36):Thesocialallowanceprescribedby lawforchildrenshallbe increasedby (100%)oforiginalvalueforeachchildwithdisability.Childrenwithdisabilityshallbeexemptedfromthenumberofchildrenspecifiedby

lawtograntsuchallowance.Retirementpensionsofwhichthepensionersareentitledtosuchincreaseshallbe

re-adjustedaccordingtosuchincrease,andnofinancialdifferencesshallbedisbursedfortheperiodprecedingthe

enforcementofthislaw.

Inallcases,theallowancestatedinthisarticleshallnotbesubjecttoanydeductionsintheeventofretirement

pensionsettlement.Personswithdisabilityshallmaintaintheallowancereferredtouponallocatingthesharesin

retirementpensiontobeneficiaries.

Article (41): As an exception from theprovisionsofSocial Security LawandMilitaryStaff Pensions Law, theinsuredorbeneficiary,whoisdisabledaccordingtoadecisionbytheCompetentTechnicalCommittee,shallbe

entitledtoaretirementpensionequivalentto(100%)ofthesalary,iftheperiodofservicecalculatedinthepensionis

atleast(15)yearsformales,and(10)yearsforfemales.Insuchcase,itisnotapreconditiontoattainacertainage.

Article (42): As an exception from theprovisionsofSocial Security LawandMilitaryStaff Pensions Law, theinsuredorbeneficiarylegallyassignedtocareforapersonwithmediumorseveredisabilityshallbeentitledtoa

retirementpensionequivalentto(100%)ofthesalaryiftheperiodofservicecalculatedinthepensionis(20)years

formales,and(15)yearsforfemales. Insuchcase, it isnotapreconditionforobtainingthepensiontoattaina

certainage, inaccordancewith the termsandcontrolsset forthby theAuthority inagreementwith thePublic

InstitutionforSocialSecurity.

Article (43):ApersonwithdisabilityunabletoworkshallbeentitledtoadisabilitypensioninaccordancewiththetermsandconditionsforwhichadecisionshallbeissuedbytheAuthority.Combiningbetweenthispensionandthe

monthlyprovisiondueinaccordancewithArticle(29)andthepensiondueinaccordancewithArticle(41)ofthislaw

orinaccordancewiththereferencedSocialSecurityLaworMilitaryStaffPensionsandRemunerationsLaw,may

nottakeplace.Apersonwithdisabilityshallbedisbursedwiththepension,whicheverisgreater.

Article (66): The Public Institution for Social Security shall be entrusted with implementing the provisions ofpensionsprescribedbyvirtueofthislaw,andforwhichtheprovisionsofSocialSecurityLawprovisionsshallapply,

inallmattersnotsetforthspecifically.

Article (69):Thepublictreasuryshallbearthefinancialburdensarisingfromtheapplicationofthislaw.

Article (70):ThereferencedLawNo.(49)of1996,andallprovisionsinconflictwiththeprovisionsofthislaw,shallberevoked.Allexecutiveresolutionshereofshallremaininforceinallmattersnotinconflictwiththeprovisionsof

thislaw,untiltheissuanceofthenecessaryexecutiveregulationsandresolutionshereof.

Article (71): This law shall come into force after threemonths from the date of its publication in theOfficialGazette(*).

(*)PublishedonVolumeNo.(964)oftheOfficialGazette,issuedon28/2/2010

Law No. (110) of 2014

on determining a financial remuneration for subjects to the social security law and

pension and retirement remunerations law for the military upon the end of the contribution.

FINANCIAL REMUNERATION

LawNo. (110)of2014was issued in23/7/2014 todetermineafinancial remuneration foremployeeswhoare

subjectedtoitinallsectors,includingtheself-employed,inordertoreliefthecitizensupontheirretirementandto

provideagoodlivingforthemandtoachievejusticeandequalitybetweenthem.

This lawwaspublishedon theOfficialGazette in 10/8/2014 andwas effective from1/1/2015. Theprominent

prescribedprovisionsregulatingtherightsandobligationsareasfollows:

First: The Categories that are subjected to the Law:Theinsuredpersonswhoworkinallsectors,civilandmilitary,aswellaspractitionersbypermitorauthorizationfrom

thespecializedauthoritiesasemployers,craftsmenandfree-lancers.

The following are excluded from the application of the law:

• The insured persons who work in the governmental sectors (civil and military) and the fully state-owned

companieswhojointheworkbeforethepublicationofthelawin10/8/2014attheauthoritieswhichdetermine

afinancialremunerationupontheendofserviceforitsemployees,sothatthiscategorypreservesitsrightfrom

whatisdeterminedforitattheauthoritieswhichitworksforwhatevertheendofservicedatemaybe.Butwho

worksfromthedateofpublicationshallbetreatedintheprovisionsofthelawandisentitledtothedetermined

remunerationintheavailabilityofitsconditions.

• Theinsuredpersonswhoworkintheauthoritiesmentionedinthepreviousclausewhoareentitledtoafinancial

remunerationupontheendofservicebeforetheimplementationofthislaw,toachievethepurposeofthelaw

whichistodisburseafinancialremunerationupontheendofservice.

• Theinsuredpersonswhoworkbeforetheapplicationofthelawatthepublicinstitutionsandinthecompanies

ownedbythemincaseofreassignmentamongsttheminanewworkcontract.Thus,thiscategoriespreserves

itsrightintheremunerationinaccordancewiththelegalizationsanditsdeterminedcontracts.

• Theinsuredpersonswhoworkforthirdpartiesinallsectors,civilandmilitary,aswellastheself-employedwho

areentitledtoaremunerationprescribedinthislawafteritsapplication,fortheinadmissibilityoftheduplication

fromthisremunerationbenefit.

Second: Remuneration’s fund prescribed by the Law:Theremunerationisfundedbytheduemonthlycontributionsontheinsuredpersonintheamountof(2.5%)from

thesalaryorincomebracket,aswellasthemonthlycontributionspaidbythepublictreasuryinanamountof(5%),

inadditiontotheoutcomeofthefund investmentsfundsandtheotherresourcesandtheminimumlimit forthe

contributionspaymentis(18)yearsgiventhatthecontributionspaymentshallbesuspendedafterthat.

The remuneration shall be considered in determining the salary which shall be calculated on the basis of the

contributioninthesalaryinamaximumlimitamountingto(KD1500)andthereforeitdoesnotincludetheelements

which are including within the salary that is subjected to the supplementary insurance as the allowances and

remunerationsandothers.ThatshallapplyontheincomebracketoftheinsuredpersonsinChapterFive.

Third: Remuneration Calculation and Payment:Theremunerationiscalculatedinequivalenttothesalaryonthebasisofwhichtheretirementpensioniscalculated

foreachyearofthecontributionyearsinamaximumlimitof(18)years.

Andifthesalaryuponwhichtheremunerationiscalculatewaslessthan(KD1000)itshallincreaseinanamountof

(KD200)orwhichsupplements(KD1000)whicheverisless.

Theremunerationshallbedisbursedfromthedateofretirementpensionentitlement;incaseofdeath,itshallbe

paidfortherightfulheirs.

Incaseofdeathortotaldisability,thedueremunerationshallnotbelessthanthecalculatedremunerationonthe

basisof(9)years.

Forth: Remuneration Entitlement Conditions:The remuneration shall be payable when the following two conditions are met:-

1. Theinsuredpersonisentitledtoaretirementpensionuponthecontributionend.

2. Thecontributionperiodafter1/1/2015shallnotbelessthantotalof(24)months,excludedfromthiscondition

areasfollows:

a) Contributionendcasesbecauseofdeathortotaldisabilityorattainingthelegallydeterminedageforretirement

oruponattainingtheageof(65)years.

b) Contributionendcasesifthecalculatedactualserviceperiodreached(30)years.

Questions and Answers concerning the most prominent regulationsof the Law No. (110) of 2014:1. What are the purposes of the law?

Thelawaimstoreliefthecitizensandtoimprovetheirstatusesandtheirstandardoflivinginthesubsequent

phaseattheendoftheirservicesandactivitieswhichgeneratesanincomeforthemiftheywerefromlicense

ownersorfree-lancers.

Also,itseekstocreateaunifiedformfortheretirementremunerationswhichdecreasesthedifferencesbetween

thedifferentsectorsandjobsinthestateinthepurposeofachievingjusticeandequality.

2. Who are the addressees to the provisions of the law?

Ingeneral,thelawisaddressedto3categoriesfromthecitizensandtheyare:

a) Employeesingovernmentjobsorinbothsectors,privateandoil,whoaresubjecttotheprovisionsofChapter

ThreefromSocialSecurityLaw.

b) KuwaitiMilitary(armyandthearmedforces/police/NationalGuard).

c) Self-employedwhoaresubjectedtotheprovisionsofChapterFivefromsocialsecuritylawlike(Theowners

ofcommerciallicensesandpermits/lawyers/physicians...etc.).

3. Is there any excluded categories from being subjected to the law?

Yes,thereare(4)excludedcategoriesfrombeingsubjectedtoitsprovisionsasitismentionedinitems(First)and

(Second)asfollows:

First:Thereareprovisionsrelatingtotheworkersinthegovernmentalsectors(civilandmilitary)orinthefully

state-ownedcompaniesthatexcludesfromthem:

1.Whojoinsworkbeforethepublicationofthislawandhisemployerdeterminedanend-of-serviceremuneration

as the applied system applies on him from the employer and this law shall not apply on him, and thus

whateverthesourceoftheremunerationmaybe(law/regulation/resolution/contract).

2.Whopreviouslywasentitledtoanend-of-serviceremunerationbeforetheenforcementofthislaw.

3.Whoworksinoneofthepublicinstitutionsorinthecompaniesownedbythembeforetheenforcementofthis

law,andthenbetransferredbyanewworkcontractbetweenthem.

Second:Therearegeneralregulationswhichareappliedonthementionedsectorsinadditiontotheprivateand

oilsectorsnotownedbythestateasthelawdoesnotapplyonwhoisentitledtothedeterminedremuneration

inthelawafteritsapplicationsincetheentitlementoftheremunerationisforonetimeonly.

Those determined exceptions in consideration to that the purpose from the approval of the right in the

remunerationisoriginallyexecutedforthesecategoriessothereisnoneedtobesubjectedinthelaw.

4. What is the effect of the law’s application on the employees in the private and oil sectors in the

companies not fully owned by the state?

Inconsequenttotheenforcementofthelawontheemployeesinthesetwosectorsbeforethepublicationof

thelawtheapplicationofitsregulationsonthemevenifanendofserviceremunerationisdeterminedforthem

bytheiremployers,itwillbetheirrighttocombinebetweenwhatmaybedeterminedforthemfromtheendof

serviceremunerationfromtheemployerandtheprescribedremunerationinthislaw.

It is limitedtothosewhopreviouslyjoinedworkinthesesectorsbeforethepublicationofthelaw,andthose

whojoinedafterthedateofitspublicationshallbesubjectedtoitsregulationsandareentitledtotheprescribed

remunerationsolely.

5. Who is the competent authority to implement the regulation of this law?

ThePublic InstitutionforSocialSecurity iscompetenttodoso,both intermsofthespecializedfundforthe

remunerationandthedisbursementoftheprescribedrights.

6. What are the insured persons’ obligations under this law and what rights will be approved for them?

Theobligationsfortheinsuredpersonsandthebeneficiariesaredeterminedtopaythecontributioninanamount

of(2.5%)fromthesalarywhichissubjectedtothebasicinsuranceandinamaximumlimitamounting(KD1500),

andforthepersonssubjectedtoChapterVfromthelawareobligedtopay(2.5%)fromthemonthlyincome

bracketvalueinthebasicinsuranceinthementionedlimit.

7. What are the employers committed to in accordance with this law?

Theemployerisobligedtodothefollowing:

1. ToprovidePIFSSwiththeduecontributionsfortheinsuredpersonswhoworkforthemwithinthespecified

dates.

2. TonotifyPIFSSeverytimetheendofserviceremunerationisdisbursedforanyinsuredpersonworkingfor

themwithenclosingthedocumentsevidencingthedisbursement.

8. How is the approved remuneration prescribed by the law being financed?

ItisfinancedthroughtheFundestablishedforthispurposethatthelaw’sregulationsdeterminedtoaddittothe

fundsestablishedbythesocialsecuritylaw,andtheprovisionsthatapplyonthesocialsecurityfundsshallapply

ontheremuneration,andspecificallyregardingthefinancialposition,thepaymentofanydeficitandreserves

disposition.Basically,thefundisbeingfinancedbytheduemonthlycontributionspaidbytheinsuredpersons

inanamountof(2.5%)fromthevalueofthesalaryorincomebracketinthebasicinsurance,alsothemonthly

contributionspaidbythepublictreasuryinanamountof(5%).

9. How is the remuneration calculated upon the end of the contribution and what are the periods

included in its calculations?

Theremunerationiscalculatedequivalenttowhatisbeingcalculatedonthebasisoftheretirementpensionat

theendofservicedatefromeachyearofthecontribution’sactualandensuredyearsinaccordancetothislaw

inamaximumlimitof(18)years.

NotingthattheretirementpensionshallbecalculatedinaccordancetotheregulationsinArticleNo.(19)ofsocial

security law for thepersonssubjects inChapterThree insurance (workers foremployers indifferentsectors

andshallbeappliedtothemilitary),whereasitshallbecalculatedforthepersonssubjecttoChapterFivein

accordancetoArticleNo.(61).

It isworthmentioning that the law determines an increment on the salary uponwhich the remuneration is

calculatedifthereferredsalaryislessthan(KD1000)inanamountof(KD200)orwhichsupplements(KD1000)

whicheverisless.

Example(1):Thecalculatedsalarypensionoftheinsuredpersonamountsto(KD850)theincreaseofthesalary

shallsupplements(KD1000),sothattheentitledincrementinthiscaseshallbe(KD150)andtheremuneration

shallbesettledonthebasisofthesalary(KD1000).

Example(2):Thecalculatedsalarypensionoftheinsuredpersonamountsto(KD750)theincreaseofthesalary

shallbeinamaximumlimitamountingto(KD200)sothattheremunerationshallbesettledonthebasisofthe

salary(KD950).

10. What are the effects resulting from reaching the maximum limit for the contribution period?

Theeffectsresultingfromattainingthemaximumlimitwhichis(18)yearsisthenon-eligibilitytoanycontributions

thataremorethanthatwhetherbytheinsuredpersonorthepublictreasuryalsoheisnoteligibletoanyrights

onregardstotheremuneration.

11. Is the disbursement of the remuneration associated with the retirement pension remuneration?

The remuneration is disbursed upon the retirement pension entitlement and regardless to whether the

disbursementofthepensionisdueorpostponedandthenitisconceivablethattheinsuredpersonisentitled

totheremunerationdisbursementwithouttheretirementpensiondisbursement.

Notingthatincaseofdeath,theremunerationisdisbursedforthelegalheirs.

12. What are the insured person’s rights which are in the service in the effective date of the law and

upon which the regulations are applied if his contribution ends before completing (18) years and the

conditions of the financial remuneration entitlement are met?

The law determines the eligibility for these cases upon the contribution end to conjoin actual contribution

periodsprevioustotheapplicationofthislawwhichsupplementsthemaximumlimitfortheperioduponwhich

theremunerationshallbeentitledthatis(18)years,whereinheisentitledtoapensionsalaryupontheendof

servicefromeachyear,andtheconjoiningamountisdeductedfromtheremunerationwhichtheinsuredperson

isobligedtopayinthiscase,inaccordancetowhatwillberefundedlater.

13. What is the amount of conjoining in this case?

Theinsuredpersonshallpay(2.5%)fromhislastsalaryforeachmonthfromtheconjoinedperiodandthetotal

amountisfullydeductedfromthedueendofserviceremuneration.

ThePublicTreasuryshallpay thedueactuarialcost for theconjoiningafterdeducting thecostpaidby the

insuredperson.

14. Does the insured person who spent (30) years in service before the enforcement of this law benefit

to continue with the contribution after it is enforced?

Theinsuredpersonwillbenefitfromcontinuinginthecontributioninaccordancetothislawasfollows:

1. Thattheircontinuationintheircontributionshallallowthemtocalculatethecontributionperiodinaccordance

tothislawthatwillbeincludedinhisdueremunerationcalculation,andthemorethecalculatedcontribution

periodextendedthelessnumberofyearsisrequiredtobeconjoinedfromhispreviousserviceperiodto

completetherequired(18)years,thustheconjoiningamount,whichisdeductedinalumpsumfromhisdue

remunerationamount,shallbedecreased.

2. Also, the continuation in the contribution shall allow the insured person to benefit from any approved

incrementonthesalarythatissubjectedtothebasicinsuranceinitsapprovedmaximumlimit,andwhich

resultsintheincreaseoftheremunerationinthispart.

3. Also,theinsuredpersonshallbenefitinthiscaseinadditiontotheapprovedremunerationinthislawofthe

determinedretirementremunerationinsocialsecuritylaworpensionandretirementremunerationslawfor

themilitaryastoitsincrementforalltheperiodswhichextendsthemaximumlimitfortheretirementpension

entitlement.

15. What are the insured person’s rights who terminated his contribution before the entitlement of the

retirement pension?

Theinsuredpersonisnoteligibletothesaidendofserviceremuneration,butisentitledtoanamountsubstitute

totheremunerationwhichispaidforhiminalumpsum,andtheamountrepresentsthetotalcontributionsthat

arepaidbyhimattheendofeachyearfromhiscontributionyearsforwhicha(5%)isaddedperannum,thus

inaperiodequivalenttotheperiodinyearsfromtheendofeachyearforthecontributionuntilthedateofthe

entitlementpayment.

16. When shall the entitlement for the due lump sum be?

Thedisbursementshallbeduewhenthefollowingcasesaresatisfied:

1. Upontheretirementpensionentitlementorincaseofdeathortotaldisability.

2. Aftertwoyearsfromthecontributionterminationdatewithoutreturningtothesubjugationfortheinsurance,

andtherequestforthedisbursementshallbeinthiscaseupontherequestoftheinsuredperson.

Inallcases,theperiodsonwhichthesaidamountsarepaidarenotcalculatedinthecontributionperiodinthislaw.

17. What are the law’s effect on the regulations that requires to refer the insured persons whom their

contribution period attained (30) years for retirement?

Thelawdeterminesaspecialregulationforthiscategoryanditapplieswithintheperiodfromitspublication

from10/8/2014until2/1/2015whichisatransitionalperioduponwhichitsexpirytheprovidedlimitation’seffect

inthisregulationshallexpire,anditshallapplyontheinsuredpersons,bothcivilandmilitary,whichstatesto

suspendeveryregulationofreferringtoretirementtowhoseactualcontributionperiodsreached(30)yearsin

ordertoprovideanopportunityforthiscategorytobenefitfromtheapprovedremunerationinthislaw.

IMPORTANT INFORMATION

IMPORTANTINFO

Important InformationFromtheInstitution’sroleinraisingawarenessabouttheprovisionsofsocialsecuritylaws,theInstitutionlay

uponthereaderthefollowinginformationandbulletins:

DearInsured-Beneficiary,

Besuretoconjoinpreviousserviceperiods(civilormilitary)orperiodsinwhicharemunerationispaidorprior

obtainingthenationalitybeforeserviceterminationtoensureitbecalculatedwithinthepension.

DearInsured-Beneficiary,

Incaseyoujoinworkorattheendofservice,checkallthedataverifiedintheformpreparedforthatpurpose

topreserveyourrights.

DearInsured-Beneficiary,

Ifyouareadisabledorwhotakescareofadisabled,makesuretofulfilltherequiredpapersanddocumentsfor

theentitlementofthedisabilitypensionfromthePublicAuthorityoftheDisabledbeforetheretirement.

DearInsured-Beneficiary,

Makesureofthesoundnessofyourdataattheemployer(specificallyinthedaysofdiscontinuationorunpaid

leaves)andknowitseffectivenessonyourretirementpensionrights.

DearInsured-Beneficiary,

Youcanconjoinnominalcontributionperiodstocompletetheentitlementperiodoftheretirementpensionorfor

theincrementofthepensioninaccordancewiththerulesandregulationssetforthforthismatter.

DearInsured-Beneficiary,

Alwaysmakesuretoupdateyourdataattheemployerspecificallywhenthechildattainstheageof24years,

thedaughter’smarriage,childrenjoiningwork,ortheireligibilitytothepensionincludingthedisabilitypension.

DearInsured-Beneficiary,

Beforeyoutakeadecisiontoretire,visittheInstitutiontomakesureofyoureligibilitytotheretirementpension.

DearInsured-Beneficiary,

Besuretoprovideconjoiningperiodofleavewithoutpaywithinthecontributionperiodintheinsuranceduring

3months fromwork commencement date; to avoid paying any additional amountswhen you submit the

applicationbeforeit’stoolate.

DearInsured-Beneficiary,

Youcanconjoinpreviousmilitaryservicetocivilandtheopposite,andthecontributionperiodsinChapterVto

ChapterIIIbeforeserviceterminationaccordingtotherulesandregulationssetforthinthisregard.

DearInsured-Beneficiary,

BesuretorequestforconjoiningtheperiodspriorattainingtheKuwaiticitizenshipduring2yearsfromthedate

ofreceivingthecitizenship.

DearCitizen,

Ifyoudon’tnotifyoftheworkingsonordaughterorthemarriageofdaughtertotheemployerduringyourservice,

thesocialallowanceandyourretirementpensionshallberecalculatedandthisshallresultinanindebtedness

fortheemployerandtheInstitution.

DearInsured-Beneficiary,

Ifyouhaveadisabledsonwhoisunabletoworkandadisabilitypensionispaidforhim,pleasemakesure

toterminatethedisbursementofthesocialallowanceprescribedforhimfromtheemployertoensurenodue

indebtednesswhenretiring.

DearInsured,

Youcanview thecomplete informationand theprocesses related tounemployment insurance through the

Institution’sofficialwebsite(www.pifss.gov.kw).

DearInsured,

Youcan request forconjoiningpreviousserviceperiodsspent insideoroutsideofKuwait for theemployer

whoisnotaddressedtothesocialsecuritylawduring2yearsfromtheterminationoftheperiodrequiredfor

conjoininginaccordancewiththerulesandregulationssetforthforthismatter.

DearInsured,

If theemployer refusedorslackened to registeryouwithin10days from joining thework,by law,youcan

registerattheInstitutiontoensureyourinsurancerights.

DearInsured,

Fortheunemploymentinsurancetobedisbursedwheneveritisdue,thecompletionofthecontributionperiod

is required for thework inprivateandoil sectorsas longas the lastcontributionperiod isnot less than6

consecutivemonths.

DearInsuredinChapterV,

Makesuretochoosetheappropriatemonthlyincomebracketwhenrequestingtoregisterinaccordancetothe

provisionsofChapterVinsurance.

DearInsuredinChapterV,

IfyouaresubjecttotheprovisionsofChapterVInsurance,makesuretoadjustyourincomebracketontime

accordingtothetablespreparedforittoensurearetirementpensionwhichinsuresforyouandyourfamilya

decentlifeafterretirement.

DearInsuredinChapterV,

Didyouknowthatnoneedtoterminatethelicensesandthepermitsissuedforyouandregisteredonthebasis

ofChapterVinsurancewhenyoufulfillbothperiodandageconditionsfortheretirementpensionentitlement?

DearInsuredinChapterV,

InpursuanttotheLawNo.(110)of2014indeterminingafinancialremunerationuponthedateofcontribution

expiry,itisobligedtopay(2.5%)fromthebracketofcontributionpayments,inadditiontotheothermonthly

contributionsasfrom1/1/2015.

DearInsuredinChapterV,

If youare registered inChapterV insurance, youcanamend thebracketbasedonwhich thecontribution

ispaid,alsoyoucanamendthebracketofcontributioncommencementwithin5yearsfromthedateofthe

contributioncommencementinaccordancewiththerulesandregulationssetforthforthat.

DearInsuredinChapterV,

IfyouaresubjecttoChapterVinsurance,youcanbenefitfromtheSMSservicetocontacttheInstitution.

DearInsuredinChapterV-Employer,

Toknowyourduecontributionsbeforepayment,pleasecontactusthroughourcallcenter(114).

DearInsured-Retired,

Didyouknowthattheinsuredpersonorpensionercanspecifypersonsforthedeathgrantpaymentwithout

beingrestrictedbythespecifiedcategoriesinaccordancewiththelaw?

DearEmployer,

Toavoidpayingadditionalamounts,makesuretoregistertheemployees(theKuwaitiandthecitizensofthe

GCC)workingforyouwithin10daysfromthedateofjoiningwork.

DearEmployer,

When requesting a registrationwithin theProvisions ofChapter V (as an employer),make sure to fulfill all

the required documents prepared for that purpose andwhich proves the practicing of the activity and its

continuationtofacilitatetheprocessoftheregistrationandthecontinuationofthecontribution.

DearEmployer,

IfyouaresubjecttotheprovisionsofChapterVInsurance,besuretorenewthelicensebeforeitexpiresandto

providetheInstitutionwithwhatprovesitinatimelymannerinordertopreserveyourinsurancerights.

DearEmployer,

BesuretopayallthecontributionsandthedueamountsfortheInstitutioninthespecificdates,whetheryouare

committedtoitorcommittedtodeductfromtheemployees’salariestoavoidadditionalamountsforbearance

asaresultofnon-payment.

DearEmployer,

Youcanpayyourduecontributionsinthespecificdatesthroughamonthlydeductionbythebankyouwork

with.

DearEmployer,

ItisobligedtoprovidetheInstitutionwiththeformsspecializedforworkersintheprivatesectorintheirspecific

timessoastotoensurethatthecontributionsareproperlycalculated.

DearEmployer,

Afterapplyingfortheunemploymentinsurance,theemployer’stotalsharefromtheduecontributionsforthe

entiresocialsecuritysystemamountsto(11.5%)andtheinsuredperson’stotalshareamountsto(8%)fromthe

basicandsupplementarysalaryfortheemployeesoftheprivateandoilsectors.

DearEmployer,

Ifyouentrustacontractorwiththeexecutionofyourworksorapartthereof,youshallnotifytheInstitutionof

thecontractor’snameandaddressatleast3dayspriorthedateofworkcommencement.Thecontractorshall

becommittedtoprovidesuchnoticeinconnectionwiththesubcontractorandtheyshallbejointlyliableforthe

fulfillmentoftheobligationssetforthfortheInstitution.

DearCitizen,

Thefalseregistrationofemployeeswillexposeyoutolegalaccountability.

DearEmployer,

Thepunctualityinregistrationdatesandcontributionspaymentandprovidingannualdataaccordingtosocial

securitylawpreservesyourrightsandtherightsofyouremployees.

DearEmployer,

PleasemakesuretoprovidetheInstitutionwiththeamendmentsthatmayoccurontheemployees’salaries

(Kuwaiti/GCCcitizens)inJanuaryofeveryyear.

DearEmployer,

To preserve your rights and towards the common good, it is obliged to provide the Institution a copy of

contributionpaymentnoticeonanannualbasisfortheinsuredpersons,KuwaitiorGCCcitizens.

DearEmployer,

InpursuantoftheLawNo.(110)of2014indeterminingafinancialremunerationuponthedateofcontribution

expiry,itisobligedontheemployertodeductthecontributionsdueontheinsuredpersonsintheamountof

(2.5%)fromthesalaryinthemaximumlimitof(KD1500)asof1/1/2015andpayittotheinstitutionwiththe

othercontributions.

DearEmployer/Insured,

ItisobligedtoprovidetheInstitutionofacertificatefromtheManpowerandGovernmentRestructuringProgram

asastatementforthesocialallowanceentitlementandtheeducationalqualificationasfrom1/8/2012.

DearEligible-RetiredPerson,

Pleasenotethatinorderfortheinsurancerightstobedisbursed;itisobligedtoprovidetheInstitutionwitha

certificateissuedbythebankindicatingyourpersonalaccountandthebranchandthattheaccountisnotjoint.

DearEligible-RetiredPerson,

BesuretoinformtheInstitutionabouteverythingconcerningtheterminationofthepension,ortheentireor

partialshareoriftheentitlementisexpired.

DearRetired,

Ifyouarea retirementpensionerholder,besure to informthe Institution incaseof joiningwork ina timely

mannerwhatevertheinstrumentofappointmentorpaymentis.

DearRetired,

If youwish to register among the subjects to the provisions of Chapter V insurance; take notice that the

registrationisoptionalandtheregistrationapplicationrequestmustbecombinedwiththerequesttoterminate

thepensionpaymentandconjoinpreviousperiods.

DearEligiblePerson,

Didyouknowthatthepensionincaseofdeathispaidfortheeligiblepersonsfromtheheirswhetherthey’re

Kuwaitisornon-Kuwaitis?

DearEligiblePerson,

In case that the heirs are outside Kuwait, youmust bring the required official documents for the pension

paymentofthedeceasedcertifiedbytheofficialauthorities.

DearEligiblePerson,

YoumustnotifytheInstitutionincaseofthedeathofthepensionerortheeligiblepersonsorthemarriageof

eligiblefemales(mother/widow/daughter/sister/daughter’sson).

DearEligiblePerson,

Theeligiblemalesincludingsonsorbrothersorthegrandsonswhoattainedtheageof26yearsandincase

theycontinuestudyingmustbringacertificateprovingtheircontinuationinstudyinginoneoftheeducational

levelswhichexceedsecondaryeducation.

DearEligiblePerson,

Itisnecessarytobringdeclarationoftheeducational,employmentandsocialstatusesoftheheirsperiodically

toensurethecontinuityofsharepayment.

DearEligiblePerson,

Didyouknowthatthesonsareeligibletothesharefromthedeceasedmother’spension?

DearCitizen,

Didyouknowthatthehusbandisentitledtotheshareofhisdeceasedwife’spensionifheisunabletogainhis

living?

DearEligiblePerson,

Didyouknowthatthegrandsonsandgranddaughtersareentitledtotheshareintheirgrandfather’spensionif

theirfatherdiedbeforethedeathofthegrandfatherorafterhewasstilleligibletothepensionofhislatefather?

DearEligiblePerson,

Didyouknowthat thewar lostperson’seligiblebeneficiaries receiveashareassuminghisdeathwhenthe

officialdocumentsconfirmhislost?

DearCitizen,

BesuretoupdateyourdataattheInstitution,specificallywhenyouraddressischanged.

DearCitizen,

IfyouareworkinginKuwaitforanemployerwhoisnotaddressedbysocialsecuritylaworyouareworking

abroad,youcancontributetothesocialsecuritysystemtoensureyourselfandyourfamily.

DearCitizen,

IfyouareunabletoworkandyoureceiveadisabilitypensioninaccordancewithArticleNo.(43)ofLawNo.(8)

of2010,makesuretonotifythePublicAuthorityfortheDisabledandtheInstitutioninconditionyoujoinwork

toterminatethedisabilitypensionpaymentsothatitshallnotresultinanindebtednessagainstyou.

DearCitizen,

YoucancontactusthroughourCallCenter(114)andE-Service(www.pifss.gov.kw).

DearCitizen,

Please take note that all banking transactions shall be in accordancewith the International BankAccount

NumberSystem(IBAN)undertheregulationsoftheCentralBankofKuwait.

Itisalsoobligedtoalltransactionsthatrequireremittancestoprovidetheinstitutionwithlettershowingthenew

bankaccountnumberinaccordancewiththe(IBAN)system.

DearCitizen,

Toregister in thePIFSSE-Service, login to the Institution’sofficialwebsite (www.pifss.gov.kw)andfill in the

preparedform.

DearCitizen,

ItisnecessarytoinformtheInstitutionincaseachangeoccurstothephonenumbers,theaddressofthehiers

ortheguardianoftheminors.

Public Relations & Information Department - Kuwait 2015

www.pifss.gov.kw 114 TaminatKw