Employer of Record Kuwait (EOR Kuwait)

• Quick, flexible, and easy entry into Kuwait in compliance with local employment laws
• Complete control over business development with your own team
• Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
• Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
• Allowing for easy market exit if necessary.
• Integrating your employees into our team through motivational events and special meetings

Hiring an employee in Kuwait requires adherence to labor laws, including ensuring eligibility for a work visa, especially for expatriates. The process involves advertising the job, screening candidates, conducting interviews, and signing a formal contract outlining terms like salary and benefits. Employers must also comply with labor standards, ensuring workers’ rights to rest, leave, and end-of-service benefits. The hiring process is regulated by Kuwait’s public authority for manpower and the Ministry of Social Affairs and Labor.

Fixed-term contracts are permitted, with the maximum duration of a single contract set at 60 months. However, there is no limit on the number of successive contracts.

All employment contracts must be submitted to the relevant Ministry. These contracts must adhere to a specified format. Typically, only the fixed portion of the compensation package is included in the contract submitted to the Ministry. If there is any variable compensation, a separate contract may be required to outline these details. Both the offer letter and employment contract in Kuwait should clearly state the salary and any compensation amounts in Kuwaiti dinars, rather than in any foreign currency.

The first three months are considered a probationary period, during which the employer will assess the employee’s performance, conduct, and suitability for the position. If these are found to be satisfactory, continued employment will be confirmed through written notice

In Kuwait, the standard workweek typically ranges from 40 to 48 hours. However, during Ramadan, the workday is reduced to six hours. While some companies only apply this reduction to Muslim employees, the law mandates that it applies to all workers.

Fridays are designated as the official rest day. International companies usually observe Saturdays off as well, while local companies are more likely to have Thursdays as their rest day.

Kuwait does not impose personal income taxes. Kuwaiti employees are required to contribute to social security. Foreign workers are not subject to this contribution.

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

Some common benefits in Kuwait include:

• Housing Allowance: Apartment rentals range from $1,100 to $3,000 per month, depending on the location and number of bedrooms.
• Car Allowance
• Transportation Allowance
• Phone Allowance

The process for non-Kuwaiti nationals to obtain a first-time residence permit takes about two months. The steps include:

• Eligibility Check: Submit a valid passport (6+ months), proof of a bachelor’s degree (certified by both the Ministry of Foreign Affairs and the Kuwaiti Embassy), and a police clearance certificate (certified by the Ministry and the Kuwaiti Embassy).
• Work Permit Application: Apply to the Ministry of Social Affairs and Labour. Approval takes up to 3 weeks. Submit the work permit and a guarantee letter to the Immigration Department, where it takes 7 business days to obtain a 3-month work visa for entry.
• Pre-Entry Medical: Arrange medical tests through the Kuwaiti Embassy in your home country.
• Arrival in Kuwait: Upon arrival, submit all documents for certification by the Ministry of Foreign Affairs.
• Security Clearance: Obtain a security clearance from your home country, certified by the Kuwaiti Embassy.
• In-Country Medical Tests: Complete medical tests, including blood work, X-rays, and fingerprinting.
• Residence Permit: Once cleared, submit documents to the Immigration Department for the final residency stamp.

There are 9 official holidays in Kuwait.

• 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

Employees are entitled to 30 days of paid annual leave after completing an initial 9 months of service with the employer. Once accrued, annual leave must be taken within one year, as agreed upon with the employee’s manager.

Annual leave should be paid in advance before the employee begins their leave period.

Annual leave does not include official holidays or sick leave.

Employees have the option to cash out any unused annual leave when their contract is terminated.

Additionally, employees who have not previously performed Al-Hajj are entitled to 21 days of leave after completing two continuous years of service with the same employer.

This leave is prorated for partial years, and the employer must pay the employee before they take the leave. Executives often receive an increased vacation allowance of 4 weeks of paid leave.

Employers must provide employees with a return ticket to their home country at least once every 1 or 2 years, with the common practice being a yearly ticket or allowance.

Muslim employees are entitled to unpaid pilgrimage leave of up to 2 weeks, available once during their employment.

Female employees are entitled to 30 days of maternity leave before the expected due date and 40 days following the birth of the child.

Additionally, pregnant employees are entitled to an extra 100 days of leave, either consecutive or non-consecutive, after their maternity leave. However, this leave is unpaid, and a medical certificate is required to confirm their inability to work.

There is no statutory paternity leave.

Employees are entitled to sick leave as follows, provided that a doctor’s medical certificate is submitted:

• 100% of salary for the first 15 days
• 75% of salary for the next 10 days
• 50% of salary for the following 10 days
• 25% of salary for the next 10 days
• No salary for the subsequent 30 days

Under indefinite period employment contracts, employees paid monthly, both the employer and employee may terminate the contract with three months’ notice. If either party terminates early, they must compensate the other for the remaining notice period.

If the employer gives notice, the employee is entitled to 8 hours of paid leave per week to search for other work. The employer may exempt the employee from working during the notice period, but it still counts towards the total length of service.

End-of-service benefits for monthly employees include 15 days’ pay for each of the first five years and one month’s pay for each additional year, up to a maximum of one and a half years’ remuneration.

If the employer terminates, the full benefits are paid. If the employee terminates, the benefits are:

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