Kuwait Employer of Record

Kuwait Employer of Record

Kuwait Employer of Record-In PEO Middle East we allow our partners with the Kuwait Employer of Record and PEO services when they want to run payroll and onboard employees without setting up a subsidiary or branch office in Kuwait. Likewise, we hire your candidate with our innovative PEO methods complying with the local labor and employment laws in the country.

Kuwait Employer of Record, Compensation and Benefits

Kuwait Employer of Record-However, In Kuwait Employer of Record we recruit and onboard the individual in a matter of days instead of the usual months it takes. Subsequently, the workers are assigned to your team, working for the organization as if they were in-hose, fulfilling the position requirements.

Table of content

  1. Overview
  2. Key factors to have in mind for Kuwait
  3. Facts About Hiring in the country
  4. Additional steps
  5. Kuwait Holidays
  6. Bonuses in the country
  7. Kuwait Working Hours
  8. Vacations in Kuwait
  9. Sick Leave in the country
  10. Maternity/Paternity
  11. Severance/Termination
  12. Kuwait Taxes
  13. Health Insurance in Kuwait
  14. Additional benefits
  15. Employment Contracts in the country
  16. Why PEO Middle East is the best option for Kuwait Employer of Record
Kuwait Employer of Record


Our different services allow businesses in Kuwait to manage payroll while we take care of compliance management, taxes, employment management, HR processes, etc. In addition, as a Global PEO expert, we work with the best practices around the globe; we manage severance and termination, market and statutory norm benefits, and employee expenses.

Similarly, we also keep you notified and informed of changes in labor laws in Kuwait.

Working with us you ensure the new employees of your business have better recruiting experience, are productive sooner, and are fully focused on your company. Similarly, you will have relief since we have a team of specialized experts assisting you with every employee. In PEO Middle East we allow you to access the best workers in more than 180 countries effortlessly.

In addition, Kuwait is a small country in Asia, bordering the Persian Gulf, Iraq, and Saudi Arabia. Over 4 million people live in the country but 3 million of them are ex-pats. Similarly, relationships are important in businesses where favoritism is common. Consider spending time catching up on familiarities, and other areas of interest.

People of this country are known for being firm negotiators, and any troubles are dealt with one-on-one outside the gathering. Similarly, you will rarely receive a ‘no’ for an answer, instead of disagreement; terms like ‘possibly’ or ‘perhaps’ are quite common. Therefore, make sure to check assumptions.

Key factors to have in mind for Kuwait

This a country with Islamic values and the people is welcome to foreigners. However, all foreigners are expected to respect cultural differences no matter their nationality or faith.

Importing, consuming, trafficking, and brewing liquor is strictly forbidden in Kuwait. Similarly, prison sentences are common for those who violate the law. In the same vein, being drunk in public is considered a punishable offense.

Citizens obtain driving licenses from the Ministry of Interior’s Traffic Department. In addition, using a mobile phone while driving or hostile driving is forbidden and punishable by the law. Speed cameras cause massive fines for those caught violating the speed limits. In other words, occupants of vehicles must wear seat belts.

This country is in position 112 out of an index of 282 of the most expensive country for ex-pats in the world. In addition, employing non-Kuwaiti nationals requires a local sponsor, this sponsor becomes the employer of record and manages all aspects of employment.

Facts About Hiring in the country

The process for ex-pats to obtain a residence permit for the first time takes approximately 2 months. Likewise, residence permits are issued for 1,2 or 3 years and require the following steps:

  1. Determine the suitability in the country through the Immigration Department. This involves presenting the following for evaluation:
  • A copy of the worker’s passport and any existing residency permit. The passport must be valid for at least 6 months.
  • Academic proof at the bachelor’s degree level. You must present an official copy of the diploma stating the educational institution. After that, it is certified by the Ministry of Foreign Affairs in the original country of the worker and then by the Embassy of Kuwait.
  • Judicial record extracts of the individual from the country the person is residing or the original country. The Ministry of Foreign Affairs of the country of origin must certify this document; after, that, by the embassy in Kuwait. You must present a valid document for at least 3 months.
  1. Complete the work permit application and submit it, this process takes up to 3 weeks to receive acceptance and approval. Likewise, you must submit the work permit with a guarantee letter to the Immigration Department, which takes up to 7 business days to acquire clearance and receive the work visa. This is the visa the individual will use to enter the country.
  2. Acquire a pre-entry medical visa approval. That is to say, the applicant must arrange medical screening tests before entering the country.
  3. The applicant must have a work permit certification. In addition, the individual must possess all required documents and have the sponsor schedule for the certification.
  4. The applicants must complete security permission from their original country, certified by the Embassy of Kuwait in the country.
  5. Finish the different in-country medical screenings such as obtaining fingerprints, blood tests, and x-ray exams.
  6. Apply for the residency permit: after the medical test has been completed, the applicants must submit the document to the Immigration Department to acquire the residency stamp in their passport.

Residency permits and work visas are employer-specific. Likewise, for individuals who want to change employment to a new sponsor, the sponsor of the existing visa must cancel it first. After that, the individual is required to leave the country and re-enter on a new visa.

Keep the next crucial facts in mind when you want to negotiate new terms of employment contract in Kuwait:

Kuwait Holidays

There are 9 public official holidays in the country:

  • National Day.
  • Islamic New Year.
  • Liberation Day.
  • Isra and Miraj.
  • Eid Al Fitr.
  • Edi Al Adha.
  • Waqfat Arafat Day
  • New Year’s Day.
  • The Prophet’s Birthday.

Bonuses in the country

Certainly, it is mandatory for companies in Kuwait to pay bonuses.

Kuwait Working Hours

The workweek is usually 40 to 48 hours, but in Ramadan, the work hours are reduced to 6. Some business only reduces the hours for Muslim workers, but it applies to all workers.

Certainly, Fridays are usually the rest day. However, international companies have Saturdays off as well, but local businesses are more likely to have Thursdays off.

Vacations in Kuwait

Workers have the right to a 30-day paid yearly leave after working continuously for 9 months for the company. However, once it is attended, employees must take the annual leaves within one negotiated with their manager:

  • Firstly, the organization must pay the annual leave in advance of the workers starting their leave period.
  • Secondly, the annual leaves do not include sick leaves and official holidays.
  • Workers have the right to their untaken annual leave money when they finish their contract.
  • If the workers have not performed Al-Hajj previously, they have the right to 21 days leave after 2 continuous years of service for the same company.

Sick Leave in the country

All workers are entitled to paid sick leave after they present a doctor’s medical report:

  • Half a month with full salary.
  • 10 days more with 3 quarters of their wages.
  • Ten days with half of their salary.
  • 10 days with a quarter of their salary.
  • A month without salary.


Certainly, all-female employees have the right to a month of leave before the expected due date and a month and 10 days after the birth of the child.

Pregnant employees also have the right to take a hundred days of leave, consecutive or not, after the maternity leave. As a result, they must present a medical certificate as proof they are unable to work. In addition, they must present a medical certificate.

In other words, there is no mandatory paternity leave.


Companies must not exceed 100 working days for probation periods and they must specify it in the contract. However, both parties can terminate the contract during the probation period without giving notice.

In addition, if the company terminates the employee, they must pay the end-of-service benefit to the worker, for the period of work complying with the labor laws of Kuwait. Likewise, both parties can end the contract with 3 months of notice when the employees have indefinite employment contracts where they are paid on a monthly basis.

Certainly, if one of the parties wants to terminate the contract before the three-month notice period, then the party must pay the other compensation equal to the remuneration of the worker for the same period of time.

When the company gives notice, the worker has the right to take 8 hours per week to search for another job.

Kuwait Taxes

Certainly, there is no personal income tax in the country.

However, social security contributions of 1.5% of the wages. In addition, the employer must pay 11% and 8.5% by the worker, up to a wage of KD 2,750 monthly.

Health Insurance in Kuwait

Keep in mind that you the workers cannot renew or issue residence permits without proof of the worker’s health insurance policy. The company is responsible to pay for the healthcare premiums, and they must provide the following medical services and basic health:

  • Laboratory and x-ray screenings.
  • Surgeries, excepting plastic surgery.
  • Medication, treatment, and hospitalization in emergencies.
  • Normal dental medication and
  • Drugs and medicine.
  • Necessary treatment and medical examinations at clinics by specialists and physicians.

Additional benefits

Certainly, there are some common benefits in the country:

  • Phone allowance.
  • Education allowance.
  • Car allowance.
  • Transportation allowance.
  • Housing allowance.

Employment Contracts in the country

In Kuwait the fixed-term contracts are usually allowed, but normally with a maximum length of a term contract set at 60 months. However, there is no limit on multiple contracts. In addition, organizations must register a copy of all employment contracts must in the competent Ministry.

Why PEO Middle East is the best option for Kuwait Employer of Record

Starting a subsidiary or a branch office in this country to engage a team of workers is an expensive, complicated, and time-consuming task. Kuwaiti labor and employment laws have well-built employee protections policies; therefore, this requires understanding the different local practices and attention to detail.

In PEO Middle East we make this process easy for your company so you can expand into Kuwait. Similarly, we will help you hire the candidate you want, ensure that you are complying with the Kuwaiti employment laws, and manage your payroll and HR processes. All of this without having to establish a subsidiary or a branch office in the country.

Our professional PEO and Global Employer of Record services allow you to focus on the core activities of your business since we will take care of the different tedious aspects.

In conclusion, if you would like to discuss how PEO Middle East can provide you with the best employee leasing or PEO services in Kuwait; you can email us via [email protected] or you can call us at +971 433 1 688.

Kuwait Employer of Record and Benefits

Kuwait Employer of Record-An international workforce is an essential tool for your company's growth. Expansion comes with a few hurdles, though. and Kuwait Employer of Record Managing your team in a single office involves several administrative tasks. Those responsibilities become even more challenging when you have employees around the world.