The Company is liable for post employment benefits under the Oil Sector Law, Social Sector Law
and the Labor Law.
Kuwaiti employees
Pensions and other social benefits for Kuwaiti employees are covered by the Public Institution for
Social Security Scheme, to which employees and employers contribute monthly on a fixed-percentage-of-salaries
basis. The Company’s share of contributions to this scheme, which is a defined
contribution scheme, is charged to profit or loss in the year to which they relate. The difference
between Oil Sector Law and Labor Law is also accrued for Kuwaiti employees.
Expatriate employees
Expatriate employees are entitled to an end of service indemnity payable under the Kuwait Labor
Law and the Company’s by-laws based on the employees’ accumulated periods of service and latest
entitlements of salaries and allowances. Provision for this unfunded commitment which represents
a defined benefit plan, has been made by calculating the notional liability had all employees left at
the reporting date.