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Kuwait EOR & PEO

SALARY PAYMENT IN Kuwaiti Dinar (KWD, KD)

CONTRACT LANGUAGES Arabic / English

PAYROLL TAX 12.00%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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Hire in Kuwait

Horizons ensures day-to-day guidance to help your business navigate Kuwait labor laws and regulations. Horizons also ensures Kuwait payroll is processed on time, and that taxes are withheld as required.

As the Kuwait Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Kuwait Tax Office. 

Partnering with our Kuwait EOR is the quickest and most cost-effective way to enter the Kuwaiti market.

Note, a Kuwait Employer of Record is also known as a Kuwait Professional Employer Organization (PEO).

Facts & Stats

EOR Platform

Hire in Kuwait, and pay employees through our platform or app.

EOR Cost

Our Kuwait EOR solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Kuwait, hire in as little as 24 hours.

Contracts

We draft labor contracts compliant with Kuwaiti labor law.

Local Benefits

We administer all mandatory benefits and contributions in Kuwait.

180+ Countries

It doesn’t stop with Kuwait — we are an international EOR

stay compliant with Kuwait labor laws

Employment Law

Kuwait employment contracts

Employers in Kuwait are required to produce written employment contracts for every employer, and must provide a copy of each contract to the government. Contracts should include any relevant details of the employment agreement, be written in Arabic, and use the Kuwaiti dinar currency. 

Fixed-term
Probationary period 6 months (maximum)
Termination notice period 90 days (standard)
Severance 15 days’ salary per year of service for years 1 – 5 30 days’ salary per year of service for years 5 – 10
Indefinite
Probationary period 6 months (maximum)
Termination notice period 90 days (standard)
Severance 15 days’ salary per year of service for years 1 – 5 30 days’ salary per year of service for years 5 – 10

Working hours in Kuwait

A normal working week in Kuwait is between 40 and 48 hours long, spread out over five days.  Friday and Saturday are usually the rest days, but some companies use Thursday and Friday. There are reduced hours (six hours per day) during Ramadan.

Hire compliantly in Kuwait without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

National holidays in Kuwait

Kuwait has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan, 2024New Year’s Day
8 Feb, 2024Isra and Miraj
25 Feb, 2024National Day
26 Feb, 2024Liberation Day
9 Apr, 2024Eid al-Fitr (Tentative Date)
10 Apr, 2024Eid al-Fitr holiday (Tentative Date)
11 Apr, 2024Eid al-Fitr holiday (Tentative Date)
16 Jun, 2024Waqfat Arafat Day (Tentative Date)
16 Jun, 2024Eid al-Adha (Tentative Date)
17 Jun, 2024Eid al-Adha holiday (Tentative Date)
18 Jul, 2024Eid al-Adha holiday (Tentative Date)
8 Jul, 2024Islamic New Year (Tentative Date)
16 Sep, 2024The Prophet’s Birthday (Tentative Date)

Vacation in Kuwait

After nine months of service with a company, employees in Kuwait are entitled to 30 days of paid vacation leave. Additionally, employees who have worked with their employer for two years can take a one-off period of 21 days specifically for religious pilgrimage.

Sick leave in Kuwait

Employees in Kuwait are entitled to paid sick leave if they provide a medical note as proof of sickness. The first 15 days of absence are at full pay, then the compensation falls to 75% for ten days, 50% for the next ten days, 25% for the next ten days. The final 30 days are unpaid.

Employee severance and terminations in Kuwait

Employees in Kuwait are generally entitled to three months of notice prior to termination. Additionally, they are usually entitled to a severance payment of 15 days of pay for every year of service up to five years, and 30 days of pay for every year beyond five. The maximum severance payment is one and a half years of pay.

Probation periods in Kuwait are limited to 100 days.

Terminations and severance in Kuwait

Employees in Algeria are generally entitled to five days of notice per year with an employer upon termination, with an upper limit of 30 days.

Workers in their probation period are not entitled to this notice period, which can be six to 12 months long depending on the role.

Employees are also usually entitled to severance pay equivalent to 15 days of pay for every year with an employer above two years, with an upper limit of three months.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Algeria EOR can mitigate risk for foreign companies and provide guidance through this process.

Tax laws in Kuwait

Employees and employers in Kuwait must both contribute a percentage of salaries toward social security. Employees pay 7.5% and employers pay 11%.

Kuwait does not have a personal income tax for employees.

Corporate tax in Kuwait is 15% in most cases. There is also a 1% religious tax called zakat.

Health insurance in Kuwait

Employers in Kuwait who are Kuwait nationals are entitled to free healthcare. Expats must pay into the state health insurance scheme, and may also get private insurance either themselves or through their employer.

hassle-free Kuwait compensation & benefits

Compensation & benefits

Compensation laws in Kuwait

The minimum wage in Kuwait varies for the type of worker. However, according to recent data, the average monthly salary in Kuwait is KWD 75 per month for domestic workers; no minimum wage for other sectors.

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefit management in Kuwait

Setting up a system of employee benefits for your employees in Kuwait can be difficult. The complex regulations and organization can require a lot of time, effort, and investment on the part of employers.

Outsourcing your benefit management process ensures that you can fully understand and adhere to the rules, guaranteeing your compliance and speeding up the process significantly. At Horizons, our Kuwait employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.

Hire in Kuwait in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Kuwait PEO” and “Kuwait EOR” are used interchangeably.

An EOR in Kuwait can feasibly hire both local and foreign nationals to work in Kuwait.

However, the ability of Horizons to sponsor your foreign national employee in Kuwait may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Kuwait EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Kuwait.

It is possible to get a work visa in Kuwait. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Kuwait are limited, however—get started today to secure your employees’ visa spot.

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