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<h1>Social Security Programs Throughout the World: Asia and the Pacific, 2004</h1>
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<h1>Kuwait</h1>
<div class="exchangeRate">Exchange rate: US$1.00 equals 0.29&nbsp;dinars.</div>
<h2>Old Age, Disability, and Survivors</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First and current laws:</span> 1976 (basic scheme), implemented in 1977; and 1992 (supplementary scheme), implemented in 1995.</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<h3>Coverage</h3>
<p><span class="h4">Basic scheme:</span> All employees.</p>
<p>Special systems for the self-employed and military personnel.</p>
<p><span class="h4">Supplementary scheme:</span> Employees with covered earnings above 1,250&nbsp;dinars a month and persons with sources of earnings not covered by the basic scheme.</p>
<p>Voluntary coverage for the self-employed (not yet implemented).</p>
<h3>Source of Funds</h3>
<h4>Basic scheme</h4>
<p><span class="h5">Insured person:</span> 5% of covered earnings, plus 1% of covered earnings (from August&nbsp;1, 2004) for the pension increment.</p>
<p><span class="h5">Self-employed person:</span> Not applicable.</p>
<p><span class="h5">Employer:</span> 10% of covered payroll, plus 1% of covered payroll (from August&nbsp;1, 2004) for the pension increment.</p>
<p><span class="h5">Government:</span> A subsidy equal to 10% of covered payroll, plus 2% of covered payroll (from August&nbsp;1, 2004) for the pension increment.</p>
<p>The minimum monthly earnings for contribution and benefit purposes are 230&nbsp;dinars.</p>
<p>The maximum monthly earnings for contribution and benefit purposes are 1,250&nbsp;dinars.</p>
<h4>Supplementary scheme</h4>
<p><span class="h5">Insured person:</span> 5% of covered earnings.</p>
<p><span class="h5">Self-employed person:</span> Voluntary contributions of 15% of the monthly income level selected by the insured (not yet implemented).</p>
<p><span class="h5">Employer:</span> 10% of covered payroll.</p>
<p><span class="h5">Government:</span> None.</p>
<p>The maximum monthly earnings for contribution and benefit purposes are 1,000&nbsp;dinars.</p>
<h3>Qualifying Conditions</h3>
<h4>Old-age pension</h4>
<p><span class="h5">Basic scheme:</span> Age&nbsp;50 with 15&nbsp;years of contributions for men and women. (The pensionable age will increase gradually to age&nbsp;55 by 2020.)</p>
<p>Age&nbsp;40 with 15&nbsp;years of contributions for married women and women with children. (The pensionable age will increase gradually to age&nbsp;50 by 2020.)</p>
<p>At any age with 20&nbsp;years of contributions for those in arduous work.</p>
<p>Early pension: Ages&nbsp;46 to 49 with 20&nbsp;years of contributions for men or unmarried women with no children. (The minimum age is to increase gradually to age&nbsp;55 (men) or age&nbsp;50 (women) by 2017.)</p>
<p>Retirement is necessary, except if moving from the public sector to the private sector, with certain conditions as to the length of service in the public sector.</p>
<p><span class="h5">Supplementary scheme:</span> Awarded at the same time as the old-age pension under the basic scheme.</p>
<p>Deferred pension (supplementary scheme): The pension may be deferred.</p>
<p>Old-age pensions are not payable abroad.</p>
<h4>Disability pension</h4>
<p><span class="h5">Basic scheme:</span> An assessed degree of incapacity for work of more than 50%.</p>
<p><span class="h5">Supplementary scheme:</span> An assessed degree of incapacity for work of more than 50%.</p>
<p>The degree of incapacity for work is assessed by the general medical council.</p>
<p>Disability pensions are not payable abroad.</p>
<p><span class="h4">Survivor pension:</span> The insured met the coverage requirements for a pension or was a pensioner at the time of death.</p>
<p><span class="h4">Death grant:</span> Payable for the death of an insured person or pensioner.</p>
<p>Survivor benefits are not payable abroad.</p>
<h3>Old-Age Benefits</h3>
<h4>Old-age pension</h4>
<p><span class="h5">Basic scheme:</span> 65% of the insured's last monthly earnings plus 2% for each year of contributions beyond 15&nbsp;years.</p>
<p>The maximum pension is 95% of the insured's last monthly earnings.</p>
<p>Part of the pension may be paid as a lump sum at the pensioner's request before age&nbsp;65.</p>
<p>Pension increment: 50&nbsp;dinars.</p>
<p>Benefit adjustment: Benefits are adjusted every 3&nbsp;years.</p>
<p><span class="h5">Supplementary scheme:</span> Based on the number of years of contributions, age, and average covered earnings.</p>
<p>Part of the pension may be paid as a lump sum at the pensioner's request.</p>
<p>Deferred pension (supplementary scheme): The pension is increased by 5% for each year of deferral.</p>
<p>Benefit adjustment: Benefits are adjusted every 3&nbsp;years.</p>
<h3>Permanent Disability Benefits</h3>
<h4>Disability pension</h4>
<p><span class="h5">Basic scheme:</span> 65% of the insured's last monthly earnings plus 2% for each year of contributions beyond 15&nbsp;years. A credited contribution period, equal to 60&nbsp;years minus the insured's age at the onset of disability, is added to the number of years of contributions to calculate the pension.</p>
<p>The maximum benefit is 95% of earnings.</p>
<p>Pension increment: 50&nbsp;dinars.</p>
<p>Benefit adjustment: Benefits are adjusted every 3&nbsp;years.</p>
<p><span class="h5">Supplementary scheme:</span> For those younger than age&nbsp;60, the benefit is calculated as if the insured were age&nbsp;60. A credited contribution period, equal to 60&nbsp;years minus the insured's age at the onset of disability, is added to the number of years of contributions to calculate the pension.</p>
<p>Benefit adjustment: Benefits are adjusted every 3&nbsp;years.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor pension:</span> Up to 100% of the deceased's pension according to the number and category of eligible survivors. The survivor pension for different eligible categories of survivor is set according to the schedule in law.</p>
<p>Eligible survivors include widows (until remarriage), dependent widowers (if incapable of work as the result of a disability), children, parents, brothers, sisters, and a son's children. Sons must be younger than age&nbsp;26; younger than age&nbsp;28 if a student. There is no limit for unmarried female survivors (the pension is suspended on marriage but is reinstated if subsequently divorced or widowed) or disabled male survivors.</p>
<p>The pension is suspended or ceases if the survivor (except the widow) starts employment.</p>
<p>If a survivor's eligibility for the pension ceases, the pension is split among all remaining eligible survivors.</p>
<p>The minimum monthly pension is 160&nbsp;dinars for a widow or a dependent widower, 130&nbsp;dinars for each parent, or 83&nbsp;dinars for each of the other survivors.</p>
<p><span class="h4">Death grant:</span> Payable on the death of an insured person or pensioner. The grant is equal to twice the deceased's last monthly earnings or monthly pension. The minimum grant is twice the minimum wage in the private and oil sectors.</p>
<p>Benefit adjustment: Benefits are adjusted on an ad hoc basis, often coinciding with increases in civil servant salaries.</p>
<h3>Administrative Organization</h3>
<p>Managed by a board of directors chaired by the Minister of Finance, the Public Institution for Social Security (<a href="https://www.pifss.gov.kw/">http://www.pifss.gov.kw</a>) administers the program.</p>
<h2>Work Injury</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First and current law:</span> 1976 (social insurance), not yet implemented.</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<p>Benefits are provided under the basic scheme for old-age, disability, and survivors, above.</p>
<p>The government pays for medical care in case of work injury.</p>
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