Employer of Record in Kuwait

Businesses can only operate smoothly in Kuwait if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Kuwait below, to avoid any compliance issues.

Employment Contract Requirements

Employing individuals in Kuwait requires adherence to specific hiring formalities due to unique characteristics in the labor market. Businesses should consider the following when crafting employment contracts:

• Language of the Contract should be in Arabic and English
• The company's disciplinary codes
• The employees ordinary working days and work hours
• Salary and benefits

Onboarding Process

We can help you get a new employee started in Kuwait quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Kuwait

The working week in Kuwait varies between 40 and 48 hours, depending on the companys policy. The work week typically runs from Sunday to Thursday with Friday and Saturday as rest days.

Overtime in Kuwait

Overtime in Kuwait adheres to the regulations outlined in Articles 66, 67, and 68 of the Kuwait Labor Law. The permissible limit for overtime work is set at a maximum of 2 hours per day, limited to three days per week or 90 days annually.

Probation Period in Kuwait

In Kuwait, an employees probation period can be no longer than 100 days.

Fiscal Year in Kuwait

1 April - 31 March is the 12-month accounting period that businesses in Kuwait use for financial and tax reporting purposes.

Payroll Cycle in Kuwait

The payroll cycle in Kuwait is usually Monthly, with employees being paid by the last working day of the month.

Minimum Wage in Kuwait

The minimum wage for employees in Kuwait is typically 0.36 KWD per hour, amounting to ~75 KWD per month for a typical 48 hour work week.

Bonus Payments in Kuwait

13th month salary is not a staturory requirement in Kuwait.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 0% on top of the employee salary in Kuwait.

Employee Payroll Tax Contributions

In Kuwait , the typical estimation for employee payroll contributions cost is around 8.5% - 11%%.

Individual Income Tax Contributions

There is no personal income tax in Kuwait.

Pension in Kuwait

In Kuwait, there is a social security system that provides pensions to Kuwaiti citizens, including retired individuals and their dependents. Additionally, Kuwaiti nationals may have access to private pension schemes offered by various institutions.

Mandatory Leave Entitlement in Kuwait

The annual leave entitlement in Kuwait is 30 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Kuwait

Kuwait has 8 mandatory national holidays in a year.

Paid Time Off in Kuwait

Employees in Kuwait are entitled to 30 days of paid leave per year after completing 9 months of service. Additionally, employees working for the same employer for two consecutive years are entitled to 21 days of paid leave to perform Al-Hajj, which is only possible once in a lifetime.

Maternity Leave In Kuwait

Pregnant employees in Kuwait are entitled to 70 days of paid maternity leave, with 30 days granted before the due date and 40 days after giving birth. Additionally, employees may request up to four additional months of unpaid leave following the end of their maternity leave.

Paternity Leave In Kuwait

In Kuwait, there is no statutory provision for paternity leave under the current labor laws.

Sick Leave In Kuwait

Employees in Kuwait who have been employed for at least one month are entitled to receive paid sick pay at the following rates:

• 15 days at full pay
• 10 days at 3/4 pay
• 10 days at 1/2 pay
• 10 days at 1/4 pay
• After exhausting these paid sick leave days, employees are entitled to an additional 30 days of unpaid sick leave.

Parental Leave In Kuwait

Kuwait does not have a separate parental leave policy that allows parents to share or divide leave entitlements between them.

Bereavement Leave

Employees are entitled to up to 3 days of bereavement leave for the death of a member of their immediate family (first and second degree relations).

Termination Process in Kuwait

In Kuwait, termination of employment must be justified by a fair reason and conducted through a fair process. An employee may be terminated for one of the following reasons:

• Employee misconduct
• Inability to perform tasks
• Operational requirments
• Health grounds

Notice Period in Kuwait

In Kuwait, there is a requirement for three months notice to be provided by both the employer and the employee.

Severance in Kuwait

In Kuwait, severance pay is contingent on the employee's length of service. Employees paid monthly are entitled to 15 days' pay for each year of employment during the first five years of service. This increases to one month's pay per year of service thereafter, up to a maximum of 1.5 times the annual salary.