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Delicate Overseas ensures day-to-day guidance to help your business navigate Kuwait labor laws and regulations. Delicate Overseas also ensures Kuwait payroll is processed on time, and that taxes are withheld as required.
As the Kuwait Employer of Record, Delicate Overseas 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 PEO is the quickest and most cost-effective way to enter the Kuwaiti market.
PEO Platform Hire in Kuwait, and pay employees through our platform or app. | PEO Cost Our Kuwait PEO 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. | 185+ Countries It doesn’t stop with Kuwait — we are an international PEO |
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.
| 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 |
| 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 |
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.
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.
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.
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.
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. Delicate Overseas ’ Algeria PEO can mitigate risk for foreign companies and provide guidance through this process.
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.
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.
