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Hire in Kuwait

Learn more about employment regulations, pay requirements, and other important information about hiring workers in Kuwait.
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Employer of record in Kuwait

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Kuwait, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Kuwait―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Kuwait and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Kuwait

The Labor Law, effective as of 2011, generally regulates minimum wage, overtime, hours of work, holidays, leave, wage payment, termination pay, and workers’ compensation. Employers and employees must contribute to retirement plans covered by social security taxes. All labor regulations are administered by the Ministry of Social Affairs and Labor in Kuwait.

Penalties for violating the labor law can include fines from 500 dinars to 5,000 dinars and imprisonment for up to three years.

According to the Labor Law, women are not permitted to work in any establishment that violates public morals or in any establishment that provides services strictly for men.

Employment contracts in Kuwait

As you look to hire employees in Kuwait, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Work hours are limited to eight hours per day or 48 hours per week.

When a daily shift exceeds five hours, employers must provide workers with one hour of rest. During the month of Ramadan, the work week is capped at 36 hours.

Night work is defined as work between the hours of 10 p.m. and 7 a.m.

Women are prohibited from working during night hours unless employed at a hospital, sanatorium, private treatment home, or another establishment approved by the Ministry of Social and Labor Affairs. Employers must provide women working during night hours at these establishments with security and transportation to and from work.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

  • The minimum wage in Kuwait is 75 dinars per month for workers in the private and oil sectors.
  • Employers must remunerate employees who work on a holiday with 200% of regular pay.

As your employer of record in Kuwait, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Kuwait does not mandate employers to provide bonus payments to employees.

Probationary period

The probation period is 100 working days as indicated in the Kuwait Labor Law 6/2010 Article number 32 where both parties have the right to terminate the contract without reason during the probation period.

The probation period is valid only at the start of employment and does not apply to renewed contracts.

Termination and severance

Employers and employees terminating an employment relationship must provide the following notice:

  • three months in advance for an employee earning a monthly salary
  • one month in advance for all other workers.

Termination pay will be allocated as follows:

  • for five years of service or less: 10 days of remuneration for each year
  • for over five years of service: 15 days of remuneration for each year worked.

Partial years worked are remunerated on a prorated basis.

Employee benefits and paid leave in Kuwait

When negotiating terms of an employment contract with a candidate in Kuwait, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Employers must provide women with 70 days of paid maternity leave. Employers may also give women, upon request, an additional four months of unpaid maternity leave. After giving birth, women may take up to two hours per day to feed a child. Employers must offer daycare services to children ages four and younger if they employ at least 50 women or at least 200 employees.

Vacation

Employers must provide employees who have worked at least six months with 30 days of annual leave. Employers must pay employees for their annual leave before the leave is taken.

Those who have completed at least two years of service must be given 21 days of paid leave to complete Al-Hajj if they have never done so before.

Holidays

Employees are entitled to leave with pay for the following regulated holidays:

  • New Year’s Day
  • Hegeira New Year
  • Isra’ and Mi’raj Day
  • Waqfat Arafat
  • Eid Al-Adha (two days)
  • Prophet’s Birthday
  • National Day

Due to the nature of the Muslim calendar, some holidays fall on different dates on the Gregorian calendar each year.

Sick leave

Employers must provide employees with 15 days of sick leave with full pay, 10 days of sick leave with 75% of pay, 10 days of sick leave with 50% of pay, 10 days of sick leave with 25% of pay, and 30 days of sick leave without pay.

Health coverage

The social insurance system implements the Social Security Law and is administered by the Public Institution for Social Security in Kuwait (PIFSS). The Amiri Law Decree No. 61 passed in 1976 was the first integrated social security law, which subsequently has been amended. This law covers retirement pension, sickness pension, retirement allowance, death gratuity, and family pension provisions.

Additional benefits

In addition to healthcare benefits, employees in Kuwait are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Kuwait, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: February 15, 2024

Employee onboarding with an employer of record in Kuwait

We write and validate all local employment contracts, streamlining the onboarding process for you and your Kuwaiti employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Kuwait, we will:

  • Schedule a welcome call to discuss HR and employment information for Kuwait, as well as answer any questions
  • Prepare a customized employment contract in English or other local language
  • Share the employment contract and benefits information with the new employee for signature and review
  • Gather tax and banking information from the employee to set up payroll
  • Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Kuwait employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Kuwait. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider, we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.

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