Pension and Disability: 11%
Unemployment: 0.50%

11.50% Total Employment Cost

Pension and Disability: 10%
Unemployment: 0.50%

10.50% Total Employee Cost

There is no personal income tax in Kuwait.

Salaried employees are paid at least once a month.

Kuwait does not require employers pay 13th salaries

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.

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.

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.

There are 8 public holidays.

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.

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

There is no paternity leave.

There is no parental 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 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.

3 months if terminated by employer or if employee resigned.

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.

A probation period can be no longer than 100 days.

To work in Kuwait, foreign nationals must obtain a work visa and a residency permit.

The process for obtaining these documents can be complex, and it is recommended to work with an experienced partner like Auxilium to ensure compliance with local regulations. Kuwait is known for its oil wealth, but it also offers a rich cultural heritage and a welcoming business environment. The Kuwaiti government has implemented a range of economic reforms to attract foreign investment and promote economic growth, including reducing corporate taxes, streamlining business regulations, and investing in infrastructure. Kuwait also has a highly skilled and multilingual workforce, with a strong emphasis on education and training.

However, Kuwait has implemented the "Kuwaitization" policy, which aims to increase the number of Kuwaiti nationals in the workforce. This policy requires employers to prioritize Kuwaiti nationals over foreign employees when it comes to job opportunities.

Employers must obtain permission from the government to hire foreign employees, and foreign employees must have a residence visa and work permit under the sponsorship of their employer. With its stable and prosperous business environment, high standard of living, and strategic location in the heart of the Gulf region, Kuwait is an ideal destination for businesses looking to expand in the GCC region.

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