Lying in the Gulf region, Kuwait is a developed country, and it is the 5th most prosperous country in terms of Gross National Income per Capita. Kuwait houses the world’s 6th largest high reserves. The national currency of Kuwait, the Kuwaiti Dinar, is the highest valued currency in the world.
Major economic hubs:
Al, Farwaniyah, Al Fahahil, Kuwait City, Ar Riqqah
Skills in demand:
Engineering, Information Technology, Medicine, Surgery, Real Estate.
Listed below are the key points an employer must keep in mind while seeking employees in Kuwait.
Employee Contract
The employment contract must be written in Arabic and a second language at the employee’s request.
Probation Period
The probation period for Kuwaiti employees is up to 100 days.
Public and Provincial Holidays
Date
Name
Type
January 1
New Year’s Day
National Holiday
January 2
New Year’s Day Holiday
National Holiday
January 30
Isra and Miraj Holiday
National Holiday
January 31
Isra and Miraj Holiday
National Holiday
February 1
Isra and Miraj Holiday
National Holiday
February 25
National Day
National Holiday
February 26
Liberation Day
National Holiday
March 31
Eid al-Fitr
National Holiday
April 1
Eid al-Fitr holiday
National Holiday
April 2
Eid al-Fitr holiday
National Holiday
June 6
Waqfat Arafat Day
National Holiday
June 7
Eid al-Adha
National Holiday
June 8
Eid al-Adha holiday
National Holiday
June 9
Eid al-Adha holiday
National Holiday
June 27
Islamic New Year
National Holiday
September 5
The Prophet’s Birthday
National Holiday
Employee Leaves
Type of Leave
Time Period
Mandatory
Annual Leave
30 days
Yes
Sick Leave
15 days
Yes
Maternity Leave
70 days
Yes
Probation period
Leave compliance
Public and provincial holidays
Payroll in Kuwait
Payroll cycle
Kuwait follows a monthly payroll cycle.
Minimum wage
The minimum wage in Kuwait is set at 75 KWD for employees.
Overtime pay
The standard working hours in Kuwait are 8 hours a day and 48 hours a week. During the month of Ramadan, employees are expected to work a maximum of 36 hours per week. Overtime is permitted in the country with a cap of 180 hours a year, 3 days a week or 90 days a year. The overtime pay is 125% above the regular rate during daytime on weekdays and 150% above the regular rate during weekends.
How taxes work
Employer Payroll Tax
Details
Contributions
Social Security
11.5%
Employee Payroll Tax
Details
Contributions
Social Security
15%
Employee Income Tax
No personal income tax is imposed on Kuwaiti individuals.
VAT
There is no VAT applicable in Kuwait.
Bonus
13th Month Pay
Employers in Kuwait are not mandated to release a 13th-month salary to their employees.
Employment in Kuwait can be terminated both by the employee and the employer. The employer can terminate the employment on substantial grounds. If the employment is terminated without any grounds, the employer must pay a severance to the employee.
Upon termination by the employer, a Kuwaiti employee is entitled to 15 days salary for every working year (maximum of one-and-a-half year’s wages) as severance pay.
Visa and immigration
A work visa and a NOC from the General Administration of Criminal Investigation at the Interior Ministry are required to work in Kuwait. Apart from this, the employee will also need a Police Clearance Certificate from the Regional Passport Office.
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