Employer of Record (EOR) Kuwait

Expand your team in Kuwait without the hassle of setting up a local entity—Hire, Onboard, and Pay employees with complete compliance through Globaine.

  • Transparent & Compliant
  • World-Class Expertise
  • Cost-Efficient

Start Hiring in Kuwait

Simple & Compliant Hiring with Globaine's Employer of Record (EOR)

Hire in Kuwait with Confidence 
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Kuwait is handled efficiently and in full compliance with local regulations.

Fast Time-To-Hire

Onboard employees in as little as 12 hours.

Cost-Efficient

The most affordable solution on the market, saving you time and money.

Compliant Contracts

We draft bilingual contracts compliant with Kuwait's labor law.

Global Reach, Local Expertise

Hire not just in Kuwait, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.

Jump to

HIRING

in Kuwait

A valid employment contract in Kuwait must include the employee’s job title, work responsibilities, working hours, compensation (salary and benefits), duration of employment (if fixed-term), and termination conditions. For expatriates, additional clauses regarding residency and repatriation are mandatory. The contract must be written in Arabic, and while English can be included for clarity, the Arabic version prevails in case of disputes.

A written employment contract is legally required for all types of employment in Kuwait. This document provides legal clarity for both parties and ensures compliance with labor laws. It must be signed before the employee begins work. Failure to have a written contract in place can result in penalties or disputes.

Salaries in Kuwait must be explicitly stated in Kuwaiti Dinars (KWD). The contract should clearly indicate whether the salary includes allowances (such as housing or transport) or if these are provided separately. For expatriate employees, the salary may also need to account for benefits such as repatriation and residency expenses.

Key clauses that are typically included in employment contracts in Kuwait involve confidentiality, non-compete agreements, and provisions for termination notice. Additionally, contracts for expatriates must detail the employer’s obligations regarding residency permits, visa sponsorship, and repatriation costs.

ONBOARDING

in Kuwait

1. What are the key steps in employee onboarding in Kuwait?

New employees must provide essential documents, including a valid work permit, residency permit, civil ID, and medical clearance certificate. For expatriates, the employer must sponsor the work visa and facilitate residency permit processing. Ensuring these documents are in order before employment begins is crucial to avoid fines or delays.

2. When are pre-hire medical checks required for employment in Kuwait?

Expatriates must undergo a pre-hire medical examination as part of the visa process. This ensures they are fit for work and meet health standards required by Kuwaiti law. The medical check is mandatory before the issuance of a work permit and must be completed in the employee’s home country as well as upon arrival in Kuwait.

3. What documents are required for onboarding in Kuwait?

Employees must provide their passport, work permit, medical clearance certificate, and a copy of their signed employment contract. Additionally, a local bank account must be set up for salary payments, as per Kuwaiti regulations.

PAYROLL

in Kuwait

Salaries in Kuwait are typically paid monthly in Kuwaiti Dinars (KWD). Employers must also adhere to any industry-specific wage structures or benefits as outlined in collective agreements. Payroll systems must ensure compliance with regulations, including accurate withholding for social security contributions and end-of-service benefits.

Expatriates must receive salaries through a local Kuwaiti bank account as mandated by the Wage Protection System (WPS). Employers are also responsible for providing allowances, such as housing, transportation, and education for dependents, if stipulated in the contract. These benefits must be documented in payroll records.

Kuwait does not have a national minimum wage for expatriates. However, for Kuwaiti nationals, the minimum wage is set at 300 KWD per month. Employers are required to ensure that Kuwaiti employees earn at least this amount, while expatriate wages are typically negotiated based on skills and experience.

Kuwait does not have a statutory requirement for 13th or 14th salaries. However, some companies may offer additional payments as part of their benefits package, often at the end of the year or during major holidays. These payments are not legally mandated and depend on the employer’s policies.

TAXES

in Kuwait

1. What are the income tax rates in Kuwait?

Kuwait does not impose personal income tax on employees’ salaries. However, foreign employees are subject to a 10% tax on their income if they are engaged in business activities. The absence of personal income tax makes Kuwait an attractive destination for foreign workers.

2. How does the tax system apply to non-residents in Kuwait?

In Kuwait, non-residents are generally not subject to personal income tax on salaries. However, they may be taxed on income derived from business activities conducted within Kuwait at a rate of 10%. Non-residents must comply with local tax regulations for any income generated within the country.

3. When should tax returns be submitted in Kuwait?

In Kuwait, tax returns must be submitted annually by the end of the fiscal year, which typically ends on December 31st. The deadline for submission is usually within four months after the fiscal year ends, by April 30th. Businesses and self-employed individuals are required to file their tax returns during this period.

4. What social security contributions are required in Kuwait?

In Kuwait, social security contributions are mandatory for Kuwaiti nationals. Employers contribute 11.5% of an employee’s salary, while employees contribute 7.5%. Expatriates are not required to make social security contributions, but they must have health insurance coverage.

LEAVE

in Kuwait

Employees are entitled to 30 calendar days of paid leave after completing one year of service. Leave accrues monthly, allowing employees to take prorated days before their first year ends.

In Kuwait, employees can start using their accrued leave after completing one full year of employment. They are entitled to 30 days of paid annual leave each year. Leave is typically granted with the employer’s approval and must be used within the year it is accrued.

In Kuwait, female employees are entitled to 70 days of maternity leave, with 50 days paid at full salary and 20 days at half salary. Male employees are entitled to 3 days of paternity leave. Maternity leave can be taken before or after childbirth, with the option to extend for an additional 30 days without pay.

In Kuwait, employees are entitled to 13 public holidays, including religious and national observances such as Eid al-Fitr, Eid al-Adha, and Kuwait National Day. If employees are required to work on public holidays, they are typically entitled to additional compensation, such as overtime pay. Employers must ensure these holidays are granted to eligible employees.

BENEFITS

in Kuwait

1. What benefits are mandatory in Kuwait?

In Kuwait, the mandatory benefits include health insurance coverage for employees, end-of-service indemnity (severance pay), and social security contributions for Kuwaiti nationals. Employers must also provide annual leave, sick leave, and public holiday entitlements as per the labor law. Foreign workers are not covered by social security, but they are entitled to other basic benefits.

2. How is the home office allowance structured in Kuwait?

In Kuwait, there is no specific legal requirement for a home office allowance. However, if an employer decides to provide one, the structure is typically based on the employer’s discretion and company policy. Any allowance provided must comply with local labor regulations and should be clearly outlined in the employment contract for clarity.

3. When should meal allowances be provided in Kuwait?

In Kuwait, meal allowances are not legally required, but they are commonly provided by employers as part of employee benefits. If offered, meal allowances are typically given on working days, often as a fixed daily amount or through vouchers. The specific terms, including the amount and frequency, should be clearly stated in the employment contract.

4. What additional benefits are common in Kuwait?

In Kuwait, additional benefits commonly offered include private health insurance, transportation allowances, and housing allowances. These benefits help companies attract and retain talent, as they are not legally required but are considered valuable perks. Some employers may also provide annual airfare allowances for employees to return to their home country.

TERMINATIONS

in Kuwait

In Kuwait, the standard notice period for terminations depends on the length of the employee’s service. For employees with less than five years of service, the notice period is typically one month. For those with more than five years of service, the notice period is usually two months, as per the Kuwaiti Labor Law.

Yes, employees can be terminated without notice in Kuwait under certain circumstances, such as gross misconduct, criminal activity, or serious breach of contract. However, such terminations must comply with the provisions outlined in the Kuwaiti Labor Law. In other cases, a valid notice period is required for termination.

Severance in Kuwait is calculated based on the employee’s length of service, with entitlement to 15 days’ salary for each year of service for the first five years, and one month’s salary for each additional year after that. Severance pay also includes compensation for any unused annual leave. This calculation follows the guidelines of the Kuwaiti Labor Law.

Mutual termination in Kuwait occurs when both the employer and employee agree to end the employment contract without resorting to legal procedures. It requires a written agreement outlining the terms of termination. The employee is typically entitled to severance pay and other benefits, as per the agreement.

FAQs

Globaine ensures compliance with Kuwait’s labor laws by handling all legal requirements, such as contract drafting, payroll management, and social security contributions, in line with local regulations. This guarantees complete adherence to employment laws and reduces the risk of non-compliance.

By using Globaine’s EOR solution, companies avoid the significant costs of setting up a local entity, including registration, legal fees, office space, and administrative overhead. This cost-effective approach ensures you can hire and manage employees in Kuwait with minimal financial investment.

Globaine guarantees quick onboarding by utilizing a streamlined process that includes pre-established agreements, automated systems for document management, and a local expert team ready to onboard employees efficiently.

Yes, Globaine can manage complex employment scenarios in Kuwait, including drafting bilingual contracts in compliance with local laws and handling terminations in line with the legal requirements, ensuring smooth and legally compliant processes.

Hiring in Kuwait without an EOR can lead to compliance issues, fines, and legal disputes due to unfamiliarity with local labor laws. Globaine mitigates these risks by providing expert guidance, ensuring full compliance, and managing all aspects of employment on your behalf.

Employer of Record (EOR) Kuwait

Need assistance with hiring or managing employees in

Kuwait?

Reach Out to Our Experts today and hire with confidence!
Consult an Expert