Country
Kuwait
Region
GCC

Kuwait Employment, Benefit and Payroll Guide

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PAYROLL

Minimum Wage

No minimum wage specified

Working Hours

Kuwaiti law defines the maximum workweek at 48 hours/6 days a week at 8 hours per day. Most companies work 5-day weeks, with Friday and Saturdays off. Those working 6 days get Friday off.

During the month of Ramadan, the working hours are reduced to 6 per day.

Employees are entitled to a one-hour break after working five straight hours.The hour is not part of the day’s work.

Overtime

Over time should not be more than 2 hours per day, 3 days per week, or 90 days a year. It pays 1.25x regular salary.

Working on a Friday earns 1.5x regular salary and a compensatory day off.

Working on a national holiday earns 2x regular salary.

Payroll Cycle

Monthly.

13th Salary

No 13th salary.

CONTRIBUTIONS

Income Tax

There is no personal income tax in Kuwait.

Payroll Tax
Type of Insurance (Pension and Disability)

Employer = 11%

Employee = 10%

Type of Insurance (Unemployment)

Employer = 0.5%

Employee = 0.5%

Total

Employer = 11.5%

Employee = 10.5%

LEAVE

Public Holidays

8 public holidays

Annual Leave

Employees are entitled to take of advantage 14 whole days leave every year for completing one whole year of service, and 21 days of leave every year after more than five continuous years of service.

Sick Leave

Employee is entitled to a sick leave provided they have a satisfactory medical report for:

·       The first six days of illness on full pay

·       The next six days on three-quarters pay

·       The next six days on half pay

·       The next six days on quarter pay

·       The next six days without pay

This entitlement is the total entitlement in one year and not per period of sickness

MaternityLeave

70 days paid, and up to 4 additional months unpaid.

Paternity Leave

There is no paternity leave.

Parental Leave

There is no parental leave.

Compassionate Leave

In the event of a first and second degree relative’s death, the worker shall be entitled to a three-day fully paid leave. The Muslim workingwoman whose husband has died shall be entitled to a fully paid iddat leave for four months and ten days from the date of death.The non-Muslim working woman whose husband has died shall be entitled to a paid leave of 21 days.

TERMINATION

Probation Period

A probation period can be no longer than 100 days.

Termination Procedure

Termination requires 3-months' notice from either side for employees with a monthly salary or one month for all others.

A contract can be terminated without notice or compensation in the event that the employee caused a significant monetary loss, committed fraud, or disclosed secrets that led to losses.

Notice Period

3 months if terminated by employer or if employee resigned.

End of Service Payment

Employees who are paid on daily, weekly hourly or piecework basis shall be entitled to 10 days for each of the first five years of service and a 15 days remuneration for each year thereafter. The total end of service benefit shall not exceed one-year remuneration.

Employees who are paid on monthly basis shall be entitled to 15 days for each of the first five years of service and one-month remuneration for each year thereafter. The total end of service benefit shall not exceed one-and-a-half-year remuneration.

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