This Law provides for the establishment of unemployment insurance and social security for Kuwaiti employees in the private, oil and gas sectors in case of their dismissal.
Eligibility is limited to Kuwaiti nationals who must be:
1. Between 18-60 years old.
2. Capable of working.
3. Not entitled to receive a pension.
4. Have been employed for at least six months from the application date of the Unemployment Insurance Law.
Under the Unemployment Insurance Law, employees are entitled to 60% of their last monthly salary for a period of six consecutive months following unemployment, whether in the case of resignation or termination.
Both the employer and the Kuwaiti employee must each contribute to this social insurance fund. Pursuant to the Unemployment Insurance Law, each Kuwaiti employee and his employer shall owe a monthly contribution of 0.5%; in addition, the public Treasury will also contribute 0.5%.
The Unemployment Insurance Law sets out certain instances where unemployment insurance benefits can be suspended or not granted altogether including but not limited to the following instances: (i) the insured has rejected a job that is suitable for him (suitability is to be determined by the Minister of Finance); (ii) the insured refused to join a training course as required by the Manpower and Government Restructuring Program; and (iii) the insured has a private business.