Employment Cost Calculator in Kuwait

Employer Tax Contributions

Tax Type	Rate	Base
Corporate Income Tax	15%	Net taxable profit (Foreign entities only)
Social Security Contribution (for Kuwaiti employees)	11.5%	Monthly salary, up to KWD 2,750/month
National Labor Support Tax (NLST)	2.5%	Annual net profit (for KSE-listed Kuwaiti public shareholding companies)
Zakat	1%	Annual net profit (for Kuwaiti public and closed shareholding companies)

Filing & Compliance

• Corporate Income Tax: Tax declarations are due within three and a half months of the fiscal year-end.
• Social Security Contributions: Employers must pay monthly social security contributions by the 15th day of the following month. New Kuwaiti employees should be registered with the Public Institution for Social Security (PIFSS) by the 5th of the following month.
• NLST & Zakat: Declarations, audited by a registered audit firm, must be filed and taxes settled by the 15th day of the fourth month following the end of the taxable period.

In Kuwait, there is no personal income tax on employee salaries. However, Kuwaiti nationals contribute to social security.

Social Security Contributions

Kuwaiti employees contribute to the Public Institution for Social Security (PIFSS). The employer also makes a contribution.

• Employee Contribution: 8% of the monthly salary up to a ceiling of KWD 2,750.
• Employer Contribution: 11.5% of the monthly salary up to a ceiling of KWD 2,750.

The monthly salary used to calculate contributions includes the base salary and most allowances.

Other Taxes

There are no other mandatory payroll deductions for employees in Kuwait related to personal income, wealth, payroll tax, capital duty, real property, or transfer taxes.

Corporate Income Tax (CIT)

While not an employee deduction, it's important to note that Kuwait has introduced a 15% corporate income tax (CIT) effective for fiscal years starting on or after January 1, 2025. This applies to multinational enterprises (MNEs) with a consolidated annual revenue exceeding €750 million in two of the previous four fiscal years.

Domestic Minimum Top-up Tax (DMTT)

Also relevant for some companies operating in Kuwait is the Domestic Minimum Top-up Tax (DMTT), effective from January 1, 2025. It applies to MNEs meeting specific revenue criteria and ensures a minimum 15% tax rate. The tax rate is the difference between the DMTT rate (15%) and the effective tax rate (ETR), if the ETR is below 15%. This affects MNEs operating in Kuwait through entities or permanent establishments (PEs).

Zakat

Kuwaiti shareholding companies are subject to Zakat, a religious tax calculated at 1% of annual net profit. This is a corporate tax and not an employee deduction.

National Labor Support Tax (NLST)

Companies in Kuwait pay a 2.5% National Labor Support Tax (NLST). This is not deducted from employee salaries.