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Kuwait Payroll Services & Solutions

Simplify your Kuwait payroll setup and management, with Horizons outsourcing

Establishing and running payroll in Kuwait

The Middle Eastern country of Kuwait has a very strong economy that, while initially powered the oil industry, has diversified significantly in recent decades, and the nation now attracts large amounts of foreign investment.

If your organization is planning an expansion into Kuwait, an important element is likely to be the hiring of local staff, along with the associated payroll setup and management. This can often be a complex process, with long waiting times and delays regularly hindering expansion. There are also cultural and administrative differences to take into account, which can complicate matters further.

At Horizons, we specialize in helping organizations spanning all industries expand internationally, including into Kuwait. We can handle your payroll setup and management, even if you don’t have a legal entity in Kuwait.

If you have an entity in Kuwait

If your business has already an official entity in Kuwait, we can help you set up and run your in-country payroll, managing all of the associated HR, administration, and compliance work.

This solution is ideally suited to large organizations with a long-term outlook for expansion in Kuwait.

If you don’t have an entity in Kuwait

For organizations that have not already established an entity in Kuwait, we offer our standard payroll outsourcing service with the added use of our Kuwaiti subsidiary. Our subsidiary will act as employer of record for your local workforce, meaning you won’t have to go through the long and cumbersome process of registering a legal entity in Kuwait.

This service provides a low-risk, flexible, and scalable option for organizations interested in expanding into Kuwait.

How we can help you set up payroll and expand in Kuwait?

Reliable Delivery

We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.

An Established Presence

Our in-country subsidiary will act as employer of record, offering you a presence in Kuwait for legal local employment.

Flexible Solutions

Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Kuwait.

Up-To-Date Compliance

With the ever-changing Kuwaiti employment laws, we’ll ensure you stay fully compliant at all times.

A Single Point of Contact

Our centralized service gives you a single point of contact, simplifying the entire in-country employment process.

Proven Global Expertise

Our in-house teams of payroll and HR experts have already helped dozens of organizations expand globally.

Kuwait payroll guide

Taxation and withholdings requirements 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. 

Entitlements 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 of service, 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.

How to establish a Kuwaiti payroll

An important part of the hiring and payroll process for many foreign organizations is setting up a Kuwaiti entity to act as employer of record. This process can be lengthy and expensive, often taking weeks or even months to complete.

Another option is to outsource your payroll setup and management to Horizons. We can offer the use of our Kuwaiti subsidiary to act as employer of record for your employees in Kuwait, so you can avoid the complex setup and management process, and can benefit from our solutions even if you don’t have a legal entity in Kuwait. Additionally, we can set up and run your payroll, HR, compliance, and any other associated work, allowing you to work on successfully expanding your businesses in Kuwait.

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