Employee Leasing Kuwait

• Launching your business activity in Kuwait can be smooth and flexible thanks to the employee leasing services offered by FMC Group, providing you with a hassle-free start without the need to set up a local company.
• Employee leasing frees up your time so you can concentrate on taking strategic decisions and achieving business goals, while we handle administrative tasks like payroll and legal compliance.
• Hiring local talent through employee leasing means faster integration and better cultural understanding, giving you a competitive edge in the Kuwaiti market.
• FMC Group gives you access to a wide pool of skilled professionals in Kuwait and connects you with the best fit for your needs.

• We source and recruit top talent aligned with your needs.
• We handle contracts and negotiate the best terms.
• We process all taxes and social contribution payments accurately.
• We provide international-standard and transparent payroll services.
• We track and manage paid vacations for your employees.
• We negotiate and implement private health insurance for your team if requested.
• We keep you updated on your employees and team dynamics.

• Kuwait boasts a rapidly growing consumer base, with a high standard of living and a youthful, educated, and tech-savvy population. The country has a high smartphone usage rate and increasing disposable income, which is driving the expansion of e-commerce. The sector is expected to exceed USD 2 billion by 2025. With a GDP per capita surpassing USD 32,000, Kuwait offers a promising market for a wide variety of goods and services.
• Situated on the northeastern edge of the Arabian Peninsula, Kuwait is strategically placed for access to both regional and global markets. It is close to key shipping routes in the Arabian Gulf, making it a pivotal logistics hub. The country’s advanced port infrastructure, particularly the Shuwaikh Port, supports trade, with plans for further expansion to boost capacity.
• Kuwait’s government is heavily investing in workforce development as part of the New Kuwait Vision 2035. This initiative aims to diversify the economy and nurture a highly skilled labor force with a focus on education, technology, and innovation. The country is fostering a new generation of STEM graduates and professionals, supported by educational reforms and collaborations with international institutions.
• Kuwait continues to enhance its infrastructure, with the Kuwait National Development Plan 2035 prioritizing urban development, transportation, and digital infrastructure. Ranked 54th in the World Bank’s 2023 Logistics Performance Index, the country is solidifying its position as a regional trade and logistics center. Key projects like the Kuwait International Airport expansion and the Silk City Project further establish Kuwait as a hub for business and tourism.
• Kuwait is increasingly focusing on attracting foreign investment through tax incentives and streamlined regulatory processes. The country offers favorable conditions for investments in sectors such as finance, technology, renewable energy, and tourism. The Kuwait Direct Investment Promotion Authority (KDIPA) supports foreign companies, while the government works to reduce oil dependency as part of its Vision 2035 economic diversification goals.

• In Kuwait, the minimum wage is set at KWD 75 (EUR 210) per month, but this can vary depending on the industry and specific contracts. While the country is known for high salaries, particularly in skilled professions, the official minimum wage often doesn’t reflect the actual earnings, especially for white-collar workers.
• Salaries in Kuwait are generally paid on a monthly basis across most industries, including both office and manual labor positions. This monthly payment structure is consistent throughout the majority of sectors.

Kuwait does not impose personal income taxes. However, Kuwaiti employees are required to contribute to social security, while foreign workers are exempt from this contribution.

As for indirect taxes, Kuwait has not yet introduced a value-added tax (VAT), though discussions about its potential implementation have been ongoing as part of regional tax reforms.

• According to Kuwaiti Labor Law, the standard working hours are 48 hours per week, with a maximum of 8 hours per day.
• During Ramadan, working hours are reduced to 6 hours per day for all employees, in both the public and private sectors, as mandated by law.

Employees in Kuwait can work up to 3 hours of overtime per day, with overtime pay set at 150% of the regular hourly rate for hours worked beyond the standard 8-hour workday.

• Employees in Kuwait are entitled to 30 days of paid vacation per year after completing one year of service, as per Kuwaiti Labor Law. This is the standard leave entitlement, regardless of the number of years worked.
• Employees may request additional unpaid leave, but approval is at the employer’s discretion and depends on the terms outlined in the employment contract.
• The official Kuwait Public Holidays:
  • New Year’s Day
  • National Day
  • Liberation Day
  • Isra and Miraj
  • Eid Al Fitr
  • Edi Al Adha
  • Waqfat Arafat Day
  • Islamic New Year
  • The Prophet’s Birthday

• Female employees in Kuwait are entitled to 70 days of paid maternity leave, provided they have completed at least one year of service with their employer. The leave can be taken either before or after delivery, with full pay (100% of their regular salary) during the entire period, which is covered by the employer.
• Fathers in Kuwait are granted 3 days of paid paternity leave following the birth of a child.
• Employees in Kuwait are entitled to 15 days of paid sick leave annually. For the first 5 days, they receive 100% of their salary. From the 6th to the 10th day, they receive 75%, and from the 11th to the 15th day, 50%. After the 15th day, no further paid sick leave is provided unless specified in the employment contract.,

• Employees in Kuwait are entitled to 3 days of paid bereavement leave following the death of an immediate family member (parent, child, sibling, or spouse).
• Employees in Kuwait are entitled to 5 days of paid leave for their marriage.
• Employees wishing to perform Hajj for the first time are entitled to 10 days of unpaid leave, provided they have completed at least 2 consecutive years of service with their employer. This leave is granted only once in the employee’s lifetime.

In Kuwait, for indefinite period contracts with monthly-paid employees, both employer and employee must provide three months’ notice to terminate. If either party ends the contract early, compensation for the remaining notice period is required.

During the notice period, if the employer terminates, the employee gets 8 hours of paid leave per week to search for new work. The employer may exempt the employee from working, but it still counts toward service.

End-of-service benefits are calculated as 15 days’ pay for each of the first five years and one month’s pay for each additional year, with a maximum of 1.5 years’ salary. If the employer terminates, full benefits are paid. If the employee resigns, the benefits are reduced based on years of service:

• Half for 3-5 years
• Two-thirds for 5-10 years
• Full benefits for over 10 years.

For more details on investment opportunities and incentives in Kuwait, you can refer to the Kuwait Direct Investment Promotion Authority (KDIPA). KDIPA offers guidance, support, and various incentives to assist foreign investors in setting up businesses in Kuwait.