Statutory and legislative payroll changes in Kuwait, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
Residency (iqama) renewal fees doubled under new residency regulations
Effective 23 Dec 2025
Kuwait's new residency regulations, in force from 23 December 2025, double the annual renewal fee for most residencies, including government and private-sector work residencies, to KD 20. Fees for other dependents such as parents rise to KD 300, up from KD 200, and granting residency is linked to obtaining health insurance from the health ministry.
For the employer
- Budget for the KD 20 annual iqama renewal fee for sponsored private-sector employees.
- Ensure health insurance is obtained as part of each residency renewal.
For the employee
- Annual residency renewal costs KD 20; residency for other dependents such as parents costs KD 300 (up from KD 200).
Source: Kuwait Times - Kuwait hikes iqama, visa fees · Last verified 1 October 2026
Social security contributions for Kuwaiti nationals: employer 11.5%, employee 10.5%
Current rates
Social security contributions apply to Kuwaiti national employees. The employer contributes 11.5% and the employee 8% of monthly salary up to a ceiling of KWD 2,750, and employees pay an additional 2.5% supplementary contribution (on salary up to KWD 1,500), for a total employee rate of 10.5%.
For the employer
- Contribute 11.5% of monthly salary for Kuwaiti national employees, up to the KWD 2,750 monthly ceiling.
- Withhold the employee's 8% basic contribution and 2.5% supplementary contribution and remit them to the Public Institution for Social Security.
For the employee
- Kuwaiti nationals contribute 8% basic plus 2.5% supplementary (10.5% total), subject to the applicable ceilings.
Expatriate workers are not covered by the social security scheme; they are generally entitled to end-of-service indemnity under Kuwait Labour Law.
Source: PwC Worldwide Tax Summaries - Kuwait, Individual - Other taxes · Last verified 1 October 2026