Hire in Kuwait

Kuwait PEO &

Employer of Record

Hire & manage teams remotely in Kuwait without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Kuwait EOR PEO

Business Language

Arabic

Salary Currency

Kuwaiti dinar

Capital city

Kuwait City

Time zone

UTC +3

EOR in Kuwait

Kuwait EOR PEO

Hire Employees in Kuwait

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in Kuwait to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Kuwait

Employer of Record (EOR) services are for companies who do not have a legal entity in Kuwait, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Kuwait.

2. Employee Onboarding

We sign a local labor contract with your employees based in Kuwait.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Kuwait.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in Kuwait

Professional Employment Organization (PEO) services are for companies who have a legal entity in Kuwait, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

Employee Income Taxes:

Individual income tax rates in Kuwait are based on progressive tax brackets.

In Kuwait, there is no personal income tax applied to the salaries of employees, neither for Kuwaiti nationals nor for expatriates. This makes Kuwait an attractive location for international workers, as they can earn tax-free income.

Tax Brackets:

Sample Calculation

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Employer Contribution

Employers in Kuwait contribute to social security only for Kuwaiti employees:

  • Social Security: 11.5% of the employee’s salary. This contribution provides benefits such as pensions, disability, and death benefits for Kuwaiti workers.

    Employee Contribution

    Kuwaiti employees contribute to the social security system:

  • Social Security: 8% of their salary. These contributions ensure that Kuwaiti nationals receive adequate social security benefits.

    Social Security

    Social security in Kuwait covers pensions and employment benefits but only for Kuwaiti nationals. The system is funded through contributions from both employers and Kuwaiti employees.

  • Pension Fund

    Pension contributions are mandatory for Kuwaiti nationals and are managed by the Public Institution for Social Security, comprising contributions from both the employer and the employee.

    Healthcare Insurance

    Healthcare is provided by the state for Kuwaiti nationals. Expatriates must have private health insurance, which is usually provided by the employer as part of the employment package.

    Working Hours Per Week

    The standard working week in Kuwait is 48 hours for private sector employees, typically from Sunday to Thursday. During the holy month of Ramadan, the working hours are reduced.

    Overtime

    Overtime in Kuwait is compensated at a rate of 125% of the normal hourly rate for daytime work and 150% for night shifts, ensuring fair compensation for employees working beyond normal hours.

    Grounds for legal termination in Kuwait include misconduct, lack of performance, or violation of local laws. Employers must follow the legal process stipulated under the Kuwaiti labor law.

    Severance

    Upon termination, employees are entitled to a severance payment, which is typically calculated based on length of service, at least 15 days’ wages for each year of the first five years and one month’s wage thereafter.

    Notice Period

    The notice period in Kuwait varies depending on the duration of employment:

  • Less than 5 years: 3 months’ notice for monthly paid employees.
  • More than 5 years: 4 months’ notice.
  • Employees are required to give at least 3 months’ notice when resigning.
  • Employment Contract

    Labor contracts in Kuwait must specify the job description, salary, duration of the contract, notice period, and end of service benefits. Contracts should also clearly state any terms regarding the probation period.

    Probation Period

    The maximum legal probation period in Kuwait is 100 days for private sector employees, during which either party may terminate the contract without notice.

    Annual Leave

    Employees are entitled to 30 days of paid annual leave per year after one year of service.

    Sick Leave

    Kuwaiti labor law allows for 15 days of fully paid sick leave, plus an additional 10 days at three-quarters pay, 10 days at half pay, 10 days at quarter pay, and 30 days without pay.

    Maternity Leave

    Female employees are entitled to 70 days of paid maternity leave, including the period before and after delivery.

    Paternity Leave

    There is no statutory paternity leave in Kuwait.

    Public Holidays

  • January 1: New Year’s Day
  • February 25: National Day
  • February 26: Liberation Day
  • Resources

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