Module: PYKW | Molga: 99 | Currency: KWD | Group: GCC
Includes: PIFSS (5%+11%) | EOSB (cap 1.5 yrs) | No income tax | Social allowance
๐งญ The Gross-to-Net Pipeline
Gross Pay (/101) โ PIFSS EE (Kuwaiti nationals only) โ NET PAY (/560)
Kuwait has no income tax. PIFSS applies to Kuwaiti nationals: 5% EE + 11% ER. Expats: zero social insurance.
๐ Kuwait Payroll Anchors
- No income tax
- PIFSS: Public Institution for Social Security โ Kuwaiti nationals only
- EE: 5% of gross; ER: 11% of gross
- EOSB: 15 days/year (1โ5 yrs); 1 month/year after 5 yrs; cap = 1.5 years total salary
- KWD is world's highest-valued currency โ configure decimal precision
- Social Allowance: government supplement for Kuwaiti nationals (IT0014)
๐ฅ Case Studies
ใ
ค | Case A: Expat | Case B: Kuwaiti National | Case C: Senior |
Monthly Salary | KWD 1,500 | KWD 2,000 | KWD 5,000 |
PIFSS EE | 0 | 5% = KWD 100 | 0 |
PIFSS ER | 0 | 11% = KWD 220 | 0 |
Net Pay | KWD 1,500 | KWD 1,900 | KWD 5,000 |
๐ข PIFSS Calculation
- Base: full gross salary (no ceiling in standard config)
- EE 5% โ
/3K1; ER 11% โ/3K2
- PCR routes based on nationality (KW = apply; others = skip)
๐ข EOSB (Kuwait Labour Law Art. 51-52)
Service | Entitlement |
1โ5 years | 15 working days/year |
5+ years | 1 calendar month/year |
Max cap | 1.5 years total salary |
Resignation 1โ3 yrs | 50% entitlement |
Resignation 3โ5 yrs | 66% entitlement |
Resignation 5+ yrs | 100% entitlement |
๐ท๏ธ Key Wage Types
WT | Description | Payslip? |
KW01 | Basic Salary | โ
|
/3K1 | PIFSS EE 5% | โ
|
/3K2 | PIFSS ER 11% | Informational |
/560 | Net Pay | โ
|
SuccessLabs Academy | SAP ECP Kuwait Payroll (PYKW) | Gross-to-Net Playbook