CR – Kuwait

Kuwait – Employer of Record

Customers who want to open a subsidiary or branch in Kuwait but still need to hire staff and
manage payroll can use our Employer of Record services. In compliance with local labor laws, we
will hire employees Kuwait PEO and we will install the in days instead of months. Consequently,
they will perform your operations in the region. 

With the help of our system, customers can manage payroll in Kuwait while we take care of their
HR services, taxes, and compliance management needs. As a professional EOR, we handle
employee expenses, regulatory and industry customary benefits, best practices for employment
contracts, and termination when necessary. In addition, we will provide you with updates when
Kuwaiti employment laws change.

Hiring in Kuwait
For non-Kuwaiti nationals, the procedure to get a first-time residence permit takes about two
months. The length of a residence permit might be one, two, or three years. Residence permits
and work visas are employer-specific. As a result, the sponsor of the current visa must revoke the
visa before the new visa may be given for those who seek to move their job to a new sponsor. The
person must depart Kuwait and then return on the new visa. The residency permit must be
formally cancelled before leaving Kuwait permanently. Failing to do so could postpone the flight or
lead to issues later.

Employment Contracts in Kuwait

There is no restriction on the number of fixed-term contracts that may be entered into; however,
the length of any one fixed-term contract is limited to 60 months.

All contracts of employment must be filed with the relevant Ministry in duplicate. As a result, the
contracts must adhere to a predetermined format. Typically, the contract filed with the Ministry
simply contains the set element of a compensation package. Variable remuneration may require
its own contract to be in place. The salary and any other compensation amounts should always be
in Kuwaiti dinar in the offer letter and employment contract.

Working Hours in Kuwait

The typical work week in Kuwait is 40 to 48 hours, while the workday is only six hours during
Ramadan. While some businesses solely cut hours for Muslims, this is against the law for all
employees.

The day off is on Fridays. Foreign businesses typically have Saturdays off too, although Thursdays
are more likely to be off for local businesses.

Holidays in Kuwait
There are nine national holidays in the region.
Vacation Days in Kuwait
After completing the first nine months of employment with the business, employees are eligible
for a 30-day yearly leave with pay. Annual leave must be used within a year of employment, as it
appears in the contract.

 Payment for annual leave must be made before the employee's leave term starts.
 Holidays and sick days are not in the annual leave.
 At the moment of contract termination, employees have the right to cash out any unused
vacation time that has been accrued.

After 2 consecutive years of service within a single company, employees who have never done Al-
Hajj are eligible to 21 days of leave.

Sick Leave in Kuwait

Workers are eligible for the following amounts of sick time as long as a doctor's report is in place:

 Within the initial 15 days, the whole salary is due.

 75% of pay for the following 10 days.
 50% of pay for the following ten days.
 25% of pay for the following ten days.
 No pay for the subsequent 30 days.

Parental Leave in Kuwait

Women have a right to maternity leave that lasts for 40 days after the baby is born and for 30 days
prior to the projected due date.

Following the maternity leave, pregnant women have the right to take an additional 100 days of
unpaid leave, whether or not those days are consecutive. However, they are not eligible for
compensation and must show a medical document proving their inability to work.

Paternity leave is not a legal requirement.

Health Insurance in Kuwait

It is not possible to get or renew a residence permit without evidence of health insurance
coverage. The cost of the health insurance, which must cover the following essential health and
medical services, is the responsibility of the employer.

 Medical evaluation and necessary care provided at clinics by general practitioners and
specialists.
 X-ray and laboratory testing.
 Surgical procedures, excluding plastic surgery.
 In the case of an emergency, care, medication, and hospitalization are in place.
 Standard medical and dental care.
 Medications and drugs.

Supplementary Benefits in Kuwait

In Kuwait, here are a few notable benefits:
  Housing stipend.
 Education stipend.
 Vehicle allowance.
 Transportation reimbursement.
 Phone stipend.

Termination in Kuwait
Any probationary term must be in the employment agreement and cannot last longer than 100
working days.

Both the employer and the employee may cancel an indefinite-term employment contract with
three months' notice in cases where the employee obtains remuneration on a monthly basis.

For workers that obtain payments on a monthly basis, the company has a duty to provide an end-
of-service reward equal to 15 days of pay for the first 5 years of employment and one month of
salary for each year after that. The overall end-of-service benefit should not be more than 1.5
years' worth of pay.

Where the employer ends the contract, the full amount of end-of-service benefits is due.

When a person leaves their employment, the company has a responsibility to provide them with
an end-of-service certificate outlining the length of their employment, position, and the last
compensation they received. Any statements that could injure the employee or restrict their
employment options may not be made by the employer, either expressly or implicitly. All papers,
credentials, and tools given to the employer by the employee must be returned to them by the
employer.

Taxes in Kuwait
In Kuwait, there is no tax on personal income.

Up to a salary cap of KD 2,750 per month, the employer and employee each contribute 11.5% of
the monthly wage for Social Security.

Why choose us?

It takes time, money, and complexity to set up a company in Kuwait to employ a small workforce.
Nevertheless, our staff makes entering Kuwait simple and painless.

Without having to deal with the hassle of establishing a foreign local branch or subsidiary, we can
assist you in hiring the candidate of your choice, deal with HR issues and payroll, and make sure
you're in accordance with regional laws. Our International Employer of Record and Kuwait PEO
solution provides you with security so you can concentrate on managing your business.