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How to hire and pay employees in Kuwait
Slasify
Jun 21, 2025
| Key Takeaways |
|---|
| 1. Payroll can be monthly or semi-monthly, with a standard minimum wage of KWD 75 for Kuwaiti nationals in private sectors. |
| 2. No personal or local income tax is applied to employment income in Kuwait, simplifying payroll compliance for employers. |
| 3. Standard working hours are 8 per day and 48 per week, reduced to 36 hours per week during Ramadan. Overtime is limited to 2 hours/day and 180 hours/year, paid at 125% of normal remuneration. |
| 4. Annual leave is 30 days, with accumulation allowed up to 2 years. Public holidays and weekends are paid separately, and first-year leave eligibility begins after 6 months of service. |
| 5. Maternity leave is 70 days paid, with optional unpaid leave up to 4 months for childcare. Other leaves include bereavement, Hajj, academic, and Iddat leave, with defined durations and rules. |
| 6. Termination and severance vary: notice periods are 1–3 months depending on employee type, and end-of-service benefits are calculated based on length of service and pay type. |
| 7. Probation period is up to 100 working days, and either party may terminate employment without notice during probation, with proportional end-of-service benefits. |
| 8. Weekly rest day entitlement includes at least 24 continuous hours after 6 working days, with compensatory pay if work is required during rest days. |
Discover the global hiring and employment landscape in Kuwait – a leading economic powerhouse in the Gulf region with vast oil reserves and a progressive vision for diversification.
Personal Income Tax
There are no taxes on employment income in Kuwait.
Local Tax
There are no local taxes on employment income in Kuwait.
Statutory Contributions
Expatriates working in Kuwait are not required to make any of the following social security contributions.
Employer Contributions
| Contribution rate | Note | |
|---|---|---|
| Social Insurance | 11.5% | Monthly contribution base limit: KWD 2,750 |
Employee Contributions
| Contribution rate | Note | |
|---|---|---|
| Social Insurance | 8% | Monthly contribution base limit: KWD 2,750 |
| Gratuity contribution | 2.5% | Monthly contribution base limit: KWD 1,500 |
Payment of Wages
Employees shall be paid at the following frequency, with each payment not being delayed for more than 7 days after the due date thereof:
| Payment frequency | |
|---|---|
| Employees paid on a monthly basis | At least once per month |
| Other employees | At least once every 2 weeks |
Minimum Wage
Minimum wage for Kuwaiti nationals varies across professions and industries, with the standard for private sector employees being set at KWD 75 per month.
Statutory Bonus
There are no statutory bonus requirements in Kuwait.
Termination
Employees shall not be dismissed without any justification or as a result of their claim of their legal rights in accordance with the provisions of the law. In any case, dismissals shall not be discriminatory.
No penalty, including those of disciplinary dismissal, may be imposed unless the employee has been informed in writing of the acts attributed to them, having their statements heard and properly investigated, and having the minutes of such investigation kept in their personnel file.
| Cause for dismissal without resulting in a loss of end-of-service benefits | Cause for dismissal without notice, compensation or benefit |
|---|---|
| Employee has been found guilty of a crime that relates to honor, trust or morals | Employee has committed a mistake that resulted in a large loss for the employer |
| Employee has committed an act against public morals at the workplace | It was found that the employee obtained employment through cheating or fraud |
| Employee has assaulted their colleague, employer or representative during work or for a reason thereof | Employee has divulged secrets related to the establishment which caused or would have caused real losses- |
| Employee has breached or failed to abide by any of the obligations imposed by their employment contract and the provision of the Labor Law | |
| Employee is found to have repeatedly violated the employer's instructions |
In the event where the employee is absent from work for 7 consecutive days or 20 separate days within a year without a valid excuse, the employer shall have the right to consider them as having resigned.
Notice Period
Both the employer and the employee are generally obligated to observe the following notice period or pay the other party in lieu:
| Notice period | |
|---|---|
| Employees earning a monthly remuneration | 3 months |
| Other employees | 1 month |
The employer may exempt the employee from work during the notice period, but they must still count such period within the employee's period of service and pay them all their entitlements and remuneration for the period.
Furthermore, if the notice period is issued by the employer, the employee shall be entitled to a day, or 8 hours, of paid leave per week to seek other employment. The employee can decide on the day or hours of absence, and shall notify the employer at least a day in advance.
Severance Pay
The full end-of-service benefit an employee may be entitled to are determined as follows:
| End-of-service benefits | |
|---|---|
| Employees paid on a daily, weekly, hourly or piecework basis |
10 days' remuneration for each of the employee's first 5 years of service and 15 days' remuneration for each year thereafter. The total benefit shall not exceed a year's remuneration. |
| Employees paid on a monthly basis |
15 days' remuneration for each of the employee's first 5 years of service and a month's remuneration for each year thereafter. The total benefit shall not exceed 1.5 years' remuneration. |
The employee shall be entitled to receive the full end-of-service benefits in the following circumstances:
| Circumstances entitling employee to their full end-of-service benefit | Circumstances entitling employee to reduced end-of-service benefit |
|---|---|
| If the employee is dismissed, unless that cause of the dismissal is such that would justify otherwise | If the employee voluntarily resign, including cases whereby their resignation is assumed due to prolonged absences |
| Upon the expiry of a fixed-term employment contract if it is not renewed | |
| If the employee rightfully resign without notice | |
| [For female employees] If the employee resign due to their marriage within a year thereof | |
| If the employment relationship is terminated due to the employee's death, proven incapacity or due to a sickness that uses up all their sick leave entitlements | |
| If the employee is dismissed on the grounds of the employer's bankruptcy or the closure of the establishment. |
The reduced end-of-service benefits resigning employees are entitled to is determined based on the employee's length of service, as follows:
| Length of service | End-of-service benefit |
|---|---|
| Up to 3 years | Not entitled to any benefit |
| 3–5 years | 50% of what they would have been entitled to |
| 5–10 years | 66.67% of what they would have been entitled to |
| More than 10 years | 100% of what they would have been entitled to |
Probationary Period
An employee's probationary period must be specified in their employment contract, and it shall not exceed 100 working days. Employees shall not be on probation more than once for the same employer.
Either party may terminate the employment contract during the probation period without notice. In the event where the termination is made by the employer, they shall pay the employee's end-of-service benefit for the period of work in accordance with the provisions of the law.
Work Time Rules
Standard Working Hours
Standard working hours in Kuwait are subject to a maximum of 8 hours per day and 48 hours per week.
Working hours during the month of Ramadhan shall be reduced to 36 hours per week.
Break Period
Employees shall not be required to work for more than 5 consecutive hours per day without a break period of a at least an hour, which is not included in the working hours.
After obtaining the consent of the Minister, employees may be required to work without a break period for technical and urgent reasons or in office work, provided that the total daily working hours is an hour less than their standard daily working hours.
In addition to their regular breaks, working mothers shall also be entitled to a 2-hour breastfeeding break during their working hours to feed their child according to such conditions set forth in the Ministry's decision.
Overtime
The employer may, by means of a written order, require their employees to work overtime if the circumstances justify it.
Employees may be required to work overtime if the necessity arises to prevent a dangerous accident or to repair damages arising from such accident, to avoid a loss, or to face an unusual workload.
Overtime work shall not exceed 2 hours per day and 180 hours per year, and they cannot be worked in more than 3 days per week and 90 days per year.
Employees working overtime must be paid at 125% of their normal remuneration for the period of overtime work.
Weekly Rest Days
Employees shall be entitled to a paid weekend equivalent to 24 continuous hours after every 6 working days.
Employers may call the employee to work during their weekly rest day if the necessity arises, provided that they are paid at least 150% of their remuneration and given a compensatory day off.
Holiday and Leave Entitlements
Public Holidays
Employees shall be entitled to paid time off during public holidays, and those required to work on such holidays must be paid double remuneration and be given a compensatory day off. There are 13 days of public holidays in Kuwait for 2025.
| Holiday | Date |
|---|---|
| Gregorian New Year | January 1 |
| Isra Mi'raj | January 27 |
| National Day | February 25 |
| Liberation Day | February 26 |
| Eid Al-Fitr | March 31–April 2 |
| Waqfat Arafat | June 5 |
| Eid Al-Adha | June 7–9 |
| Hegira New Year | June 27 |
| Prophet’s Birthday | September 5 |
Annual Leave
Employees shall be entitled to at least 30 days of paid annual leave, though in their first year, this can only be enjoyed after completing at least 6 months of service.
The employee shall be entitled to annual leave for the fraction of the year in proportion with the period they actually work, including in their first year of service.
The employer shall have the right to determine the date of the annual leave and divide such leave after the first 14 days thereof, with the employee's consent.
On the other hand, the employee shall have the right to accumulate their leave entitlements for up to 2 years, and they shall be entitled to take their accumulated leave all at once, subject to the employer's approval.
Note: The employee's weekly rest day, public holidays and sick leaves falling during their annual leave period shall not be counted as annual leave.
Sick Leave
Employees shall be entitled, in each year, to the following sick leave arrangement:
| Duration of sick leave | Sick leave pay |
|---|---|
| 15 days | 100% |
| 10 days | 75% |
| 10 days | 50% |
| 10 days | 25% |
| 30 days | 0% |
The employee is obligated to provide a medical report from a doctor appointed by the employer or a doctor from the government medical center.
Maternity Leave
Pregnant employees shall be entitled to 70 days of paid maternity leave, provided that they give birth within this period.
After the end of the employee's maternity leave, they shall have the right to request for up to 4 months of unpaid leave to take care of the child.
Other Leave
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Academic Leave | Paid | Up to 5 years | For employees to obtain a higher degree in their work field, provided that they agree to work for the same employer for a period of time equal to the leave period, up to a maximum of 5 years. |
| Bereavement Leave | Paid | 3 days | Can be taken in the event of a first and second degree relative's death. |
| Hajj Leave | Paid | 21 days | For employees with at least 2 continuous years of service to perform Al-Hajj, provided that they have not performed hajj before. |
| Iddat Leave | Paid | 4 months and 10 days |
For Muslim women whose husband has died. In the same circumstances, non-Muslim women shall only be entitled to 21 days of paid leave. |
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