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Kuwait PEO & Employer of Record

Expand your business into Kuwait, even without a Kuwaiti subsidiary

The resource-rich Middle Eastern nation of Kuwait is an economic power with the fourth-highest GDP per capita on the planet. With the huge amount of opportunity in the country, it is unsurprising that many foreign businesses look to expand their operations into Kuwait.

If your company is planning an expansion into Kuwait, then you should be prepared for a complex process. While the rewards are worth it, Kuwait’s unique business and employment regulations, cultural customs, and language can all result in costly delays to any expansion efforts.

At Horizons, we help organizations of all kinds to expand abroad, including into Kuwait. Our professional employer organization (PEO), employer of record, and payroll services can provide your organization with everything you need to begin your Kuwaiti expansion in a matter of just days, not the weeks or months it could otherwise take, even if you don’t have an established entity in the country.

We have an in-house recruitment team, so we can source, recruit, and onboard your new staff members. Additionally, you can use our Kuwaiti subsidiary to act as employer of record for your new hires, so you don’t even need to register an entity in the country but will have total autonomy over your employees. Our outsourcing solutions could save you thousands in expansion costs, and can help you expand in a compliant, flexible, and scalable way.

Our Kuwait PEO simplifies your expansion

Horizons enables your business to expand its operations into Kuwait, without needing to set up a legal subsidiary.

Rapid Market Entry

Horizons will enable you to source, hire, and onboard professionals across Kuwait in as little as 48 hours.

Cost-Effective Expansion

Our PEO solution can help you benefit from cost savings of up to 85%, without the need to establish a Kuwaiti entity.

Payroll Services

Simplified Kuwait salary & payroll processing, including social security payments, tax, and any other required contributions.

Employee Onboarding

Utilize the relevant provision for all types of Kuwaiti labor contracts, whether a fixed-term or open-ended contract.

Onsite Legal & HR Team

Full support for Kuwait-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.

Ensure Full Compliance

We ensure that employment contracts are fully compliant and adhere to Kuwaiti labor laws and best practices.

Hiring in Kuwait - Employment Law Overview

📝 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. 

⏰ 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.

📅 National holidays in Kuwait

🏖 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 PEO 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.

💳 Kuwait compensations & benefits

Compensation laws in Kuwait

The minimum wage in Kuwait varies for the type of worker. For example, domestic workers have a minimum wage of 60 dinars per month, and private-sector workers have a minimum wage of 75 dinars per month.

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.

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