Options for Employer Calculation Cards for Kuwait

Kuwait localization provides two predefined calculation cards at the payroll statutory unit (PSU) level.

You can access these cards using the Manage Legal Entity Calculation Records task from the Payroll Administration work area.

Employer Social Insurance Calculation Card

Here's the information this card uses for social insurance calculation at the legal entity level:

Employer sector: You can select either government, private sector or military. The application applies the calculation rules based on the sector type you select.

Deduction rules are based on the employer sector to calculate the social insurance. Deduction rules are same for both government and military. Oil is categorized under the private sector.
Proration rules:
- If the employee works till the last day of the month, then the social insurance contributions start from the date of joining to the last date of the month.
- If the employee leaves before the last day of the month, then the contributions for that month aren't considered.
Contributory salary reference formula: You can define the formula that calculates the contributory salary at the legal entity level. This is used as the reference value for social insurance calculation.
The contributory salary is divided into two types of calculations: the basic social insurance and the supplementary social insurance. These are the earnings for calculation of basic insurance and supplementary insurance:

Insurance Type	Minimum Earnings (Kuwaiti Dinar)	Maximum Earnings (Kuwaiti Dinar)
Basic Insurance	230	1500
Supplementary Insurance	1500.001	2750

If the contributory salary is less than the minimum earnings, then the minimum earnings is used to calculate social insurance contributions. If the contributory salary is more than the maximum earnings, then the maximum earnings is used to calculate social insurance contributions. Otherwise, you must use the contributory salary to calculate social insurance contributions.
Age limit: Social insurance is processed for the employee if the minimum age is 18 years and the maximum is 65. If the employee is employed at age 65 and Social Insurance is being calculated, the contributions will continue except for Unemployement Insurance which ends when the employee is age 60.

This card contains the PSU details and uses this information for gratuity calculation at the legal entity level:

Calculation basis: To calculate gratuity, the application uses the employee's monthly salary as the basis and converts the monthly salary to annual salary, while considering the employee's length of service.
Salary formula: You must define your own salary formula for gratuity calculation. Once defined, you can select it here.
Reference formula: You can define your own reference formula to calculate the paid gratuity amount. Once defined, you can select it here. This overrides the amount calculated by the default reference formula in the gratuity details calculation component.
Length of service: The length of service is calculated from the initial hire date to the date of termination, deducting any unpaid leave taken during the service. According to the Kuwaiti labor law, a month is equal to 26 days, and a week has six working days, Friday being a holiday, while calculating the employee's length of service.
An employee who resigns during probation isn't entitled to gratuity payments.
A married female employee resigns, and the date of her marital status change is within six months before her resignation date, she's eligible for full gratuity regardless of her length of service.
Gratuity calculation differs depending on the employment sector of the employee.
The rules for gratuity calculation differ for fixed and unlimited contract types.
The rules for gratuity calculation also differ depending on whether the termination is initiated by the employer or the employee.