Kuwait

Employer of Record (EOR) in Kuwait

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Kuwait . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Kuwait.

Employer of Record people
A coin
Currency
Kuwaiti Dinar
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Capital
Kuwait
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Region
Asia
Megaphone
Language
Arabic
Hire remote employees
Population
4270571
A pile of gold
GDP
$120 billion
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GDP growth
-0.0287
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Ease of doing business
67.4
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World GDP share
0.0015

1. Grow your team in Kuwait with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Kuwait , particularly if you don't have established local relationships. You can hire employees in Kuwait effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Kuwait, officially the State of Kuwait (Arabic: دولة الكويت Dawlat al-Kuwayt), is a country in Western Asia. It is located near the point of the Persian Gulf in northern Eastern Arabia, bordering Iraq to the north and Saudi Arabia to the south. Kuwait and Iran share marine boundaries. Kuwait has a 500-kilometer-long coastline (311 mi). The capital city, Kuwait City, is home to the majority of the country's people. Kuwait has a population of 4.67 million people as of 2022, with 1.85 million Kuwaitis and the rest 2.8 million foreign nationals from over 100 countries.

The majority of modern-day Kuwait was formerly part of ancient Mesopotamia. Pre-oil Kuwait served as a vital commerce hub for Mesopotamia, Persia, and India. Commercial volumes of oil deposits were identified in 1938. For the first time, crude oil was shipped in 1946. From 1946 through 1982, the nation experienced massive development, partly fueled by oil revenue. Kuwait faced geopolitical turmoil and severe economic catastrophe after the stock market meltdown in the 1980s. Following oil production conflicts with neighboring Iraq, Kuwait was invaded in 1990 and eventually absorbed into one of Iraq's governorates by Saddam Hussein. The Iraqi occupation of Kuwait ended in 1991, after military intervention by a coalition headed by the United States and other nations.

Kuwait is a kind of emirate. The Emir is the head of state, and the royal family, the Al Sabah, controls the country's political structure. The official state religion of Kuwait is Maliki Sunni Islam. Kuwait is a developed nation with a high-income economy and the sixth-largest oil reserves in the world. The Kuwaiti dinar is the world's most valuable currency. Kuwait is the world's fifth wealthiest country in terms of GDP per capita. Kuwait earned the highest Human Development Index in the Arab world in 2009. Kuwait has the most stateless persons in the whole area. Kuwait is a GCC founding member.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Kuwait is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

After 9 months of work, the minimum paid leave is 30 days. If an employee has worked for the same company for two weeks in a row, he or she is entitled to 21 days of paid leave to conduct Al-Hajj if the employee has never done so before.

Public holidays

There are 8 public holidays in all, with a total of 13 days off.

Sick days

Employees who have worked with the company for at least one month are eligible to sick pay at the amount shown below.

15 days at full salary,

10 days at 34 percent pay,

10 days at half pay,

10 days at quarter pay, and

30 days without pay.

All workers are required to get government medical insurance.

Maternity leave

70 days paid, plus up to four months of accrued time.

Paternity leave

There are currently no laws or regulations in Kuwait regarding paternity leave.

Parental leave

There are currently no laws or regulations in Kuwait regarding parental leave.

Other leave

Employees are entitled to up to three days of bereavement leave if a member of their immediate family dies.

A Muslim woman whose husband dies is entitled to four months and ten days of fully paid leave. A non-Muslim lady whose spouse dies is entitled to 21 days of fully paid leave.

5. Employment termination

There is no information about employment information for this country.

Termination process

Termination requires a three-month notice period from both parties for employees paid on a monthly basis and one month for all other employees. A contract may be canceled without warning or pay if the employee causes considerable financial loss, commits fraud, or discloses confidential information that results in losses.

Notice period

Employees earning a monthly wage must give three months' notice from either side, while all others must give one month's notice.

Probation period

A probation period cannot be longer than 100 days.

Severance pay

Monthly-paid employees receive 15 days of compensation for each year of employment with the company they have been employed to for up to five years. For employees with more than five years of employment, a one month's wages for each year thereafter, which is capped to a maximum of 1.5 years salary. Employees paid by the hour, day, or week earn ten days' salary for each year of employment of up to five years, and fifteen days for each year thereafter, with a maximum of one year's salary.

6. Working hours

There is no information about the working hours for this country.

General working schedule

The standard workday is eight hours long and 48 hours long per week. However, during the fasting month of Ramadan, work hours are reduced to 36 hours per week. Employees who work more than five continuous hours per day receive a one-hour break and one day off per week (usually Friday). Certain employers also give employees Saturdays off. Employees who work on their weekly day off are entitled to receive 150% of their regular pay and an additional day off. Employees who work on a holiday are compensated at 200 percent of their regular salary.

Employers are prohibited from assigning female employees to evening shifts between 10 p.m. and 7 a.m. or to jobs that cater primarily to male clients.

Overtime

Overtime is permitted only with the employer's written authorization and is limited to two hours per day, three days per week. Overtime cannot exceed 180 hours or 90 days in a calendar year. During workdays, overtime pay is 125 percent of the regular rate.

7. Minimum wage

There is no information about the minimum wage for this country.

Kuwait’s minimum wage is 75 Kuwaiti dinars per month. Although the minimum wage equates to $250 a month, many employees make between $40,000 and $50,000 a year.

8. Employee benefits

There is no information about the employee benefits for this country.

Without proof of a health insurance policy, residence permits are not granted or renewed. The employer is responsible for paying health insurance premiums, which must cover medical examinations and necessary treatment at clinics by physicians and specialists; laboratory and x-ray tests; surgery operations, except plastic surgery; treatment, medication, and hospitalization in the event of an emergency; normal dental treatment and medication; and drugs and medicine.

Housing allowance (Apartment rentals range from $1,100 to $3,000 per month depending on location and number of bedrooms); education allowance; car allowance; transportation allowance; and phone allowance are some of the most common benefits in Kuwait.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Kuwait is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

Individual income tax

Kuwait is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

VAT, GST and sales tax

Kuwait is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Employers of foreign nationals in Kuwait have few alternatives under the country's immigration system. The petroleum-based sector dominates Kuwait's open economy, with financial services being the region's biggest non-petroleum business.

Visitors on business may get a commercial visit visa sponsored by a Kuwaiti enterprise. Certain nations may qualify for visa-on-arrival or hotel-sponsored visit visas.

Foreign nationals are severely limited from working in Kuwait, and the government vigorously encourages the hiring of Kuwaitis. Recent nationalization initiatives have emphasized the replacement of foreign nationals in the public sector with Kuwaitis.

Foreign nationals must acquire an entrance visa as well as employment and residency permits as part of the immigration procedure. Local sponsorship is required.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Employer and employee information and addresses

The start date

The end date for fixed-term contracts

Job description

Salary, payment method to a bank account and payment intervals

The probation period, which cannot exceed 100 days and can be renewed only once

Benefits

A female employee is entitled to receive the same salary as that of a male employee for the same job.

With Rivermate being your Employer of Record (EoR) in Kuwait, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

Contracts for employment must be in written and in Arabic. Contracts might be for a set period of time or for an unlimited period of time. A fixed-term contract cannot be less than one year long or more than five years long, and it may only be extended with the consent of both parties. However, if the task is not completed without a formal extension, the contract will automatically become indefinite-term. The employee will also keep any accumulated dues from the prior contract, which has ended.AC

Fixed-term contracts are permitted, with the maximum duration of a single fixed-term contract set at 60 months, however there is no restriction on the number of contracts permitted.

The contract should be created in three copies, one for the employee, one for the employer, and one for the Ministry's responsible authority. A translation based on the Arabic contract must be appended to the employee's copy in the event of a foreigner.

Payment currency

Kuwaiti Dinar (KWD)

13.Opening a subsidiary in Kuwait

There is no information about the working hours for this country.

How to set up a subsidiary

Many distinct aspects influence how to establish a Kuwait subsidiary. For example, different areas and localities in Kuwait may have their own subsidiary laws, which would affect how you incorporate. If you are unfamiliar with the many locations of the nation, working with a lawyer, accountant, or consultant who can propose the ideal location for your firm might be beneficial.

Another essential consideration is the kind of your subsidiary. You have the option of incorporating as a limited liability company (LLC), a shareholding company, a partnership, or a branch. Each choice will impose distinct Kuwait subsidiary rules and limits on your degree of operation in the nation. Many businesses opt to incorporate as limited liability corporations (LLCs) because they provide the greatest operational flexibility. The most restricted sort of entity is a branch.

The following stages are involved in establishing your Kuwait subsidiary as an LLC:

1. Registering with the Ministry of Commerce and Industry's Department of Companies (MOCI)

2. Purchasing a one-of-a-kind business name

3. Obtaining the notice from the Department of Companies sent to the bank

4. Depositing your funds at a bank

5. Having the appropriate municipality check your company's offices

6. Obtaining clearance from the Department of Companies for your memorandum of association

7. Having the memorandum of association notarized in front of a public notary

8. Creating an account with the Commercial Registry

9. Obtaining a business license from the Department of Companies

10. Become a member of the Kuwait Chamber of Commerce and Industry.

11. Creating an account with the Public Authority for Civil Information (PACI)

12. Getting registered with the Ministry of Labor and Social Affairs

Subsidiary laws

Although an LLC is the most appealing subsidiary choice, there are still requirements that must be followed in order to be legal. Unless it is in a free zone or has been certified by the Kuwaiti Investment Agency, an LLC's ownership must be 51 percent owned by a local shareholder. LLCs with 51 percent local shareholder ownership must pay a 15% yearly corporation tax rate. Companies operating in free zones are exempt from any corporation taxes.

Keep in mind that Kuwait began making it more difficult for international enterprises to establish themselves in 2014, but overturned some of the policies in 2016. Complex company needs often necessitate flexibility and patience as you traverse confusing, sometimes contradicting rules. With no rules to hold authority in check, public officials routinely participate in corrupt acts.

13. Why choose Rivermate as your Employer of Record / PEO in Kuwait

Establishing an entity in Kuwait to hire a team takes time, money, and effort. The labor law in Kuwait has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Kuwait simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Kuwait give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Kuwait via our Employer of Record (EOR) / PEO solution.

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