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Kuwaiti Dinar
EOR IN Kuwait
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A guide to employing and growing your team in Kuwait
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Kuwait’s labor market is governed by Law No. 6 of 2010 (Private Sector Labour Law). In 2026, the Public Authority for Manpower (PAM) has enhanced digital oversight, requiring all employers to log daily working hours and shifts via a centralized electronic platform. Expatriate workers, who make up a large portion of the workforce, are subject to strict “Kafala” (sponsorship) regulations. The minimum wage remains KWD 75 per month (last adjusted in 2017).
Employer Contributions
Social Security (Kuwaiti Employees): 11.50%
End-of-Service Gratuity: Accrued at 15 days’ pay per year for the first 5 years, and one month’s pay per year thereafter (capped at 1.5 years’ salary).
Total Employer Contribution: 11.50%
Employee Payroll Taxes
Social Security (Kuwaiti Employees): 8.00%
Personal Income Tax: 0%
Total Employee Contribution: 8.00% (for Kuwaitis) or 0% (for expatriates).
Employee Income Tax Rates
Kuwait does not impose any personal income tax on salaries, regardless of nationality or residency status. This 0% rate applies to all forms of labor income, including bonuses and allowances.
Statutory Leave
Employees are entitled to 30 working days of paid annual leave after 6 months of service (accrued at 2.5 days per month). Kuwait observes approximately 9 to 11 public holidays annually, depending on lunar sightings.
Public Holidays 2026: Key dates include National/Liberation Day (Feb 25-26), Eid Al-Fitr (approx. Mar 20), and Eid Al-Adha (approx. May 27).
Hajj Leave: Muslim employees with 2+ years of service who have not performed Hajj previously are entitled to 21 days of paid leave.
Pregnancy and Maternity Leave
Maternity leave in Kuwait provides 70 days of fully paid leave, which can be distributed as a maximum of 30 days before the delivery date and at least 40 days following it. To be eligible, the employee must be covered by a valid contract. Following the 70-day period, a woman may request up to 4 months of additional unpaid leave for childcare. During this time, the employer is prohibited from terminating her services or providing notice of termination. Furthermore, breastfeeding mothers are entitled to two hours of nursing breaks per day during working hours.
Paternity Leave
Kuwaiti labor law currently does not mandate paid paternity leave for fathers in the private sector. Some multinational companies or specific collective agreements may provide 1 to 3 days, but there is no statutory requirement under the Private Sector Labour Law.
Work-Related Injury Leave
Sick Leave: Employees are entitled to 15 days at full pay, 10 days at 75% pay, 10 days at 50% pay, and 10 days at 25% pay per year (subject to a medical certificate).
Compassionate Leave: Typically 3 days of paid leave for the death of a first-degree relative
Termination Process
Contracts can be terminated by either party with proper notice. If an employer dismisses an employee without cause, they must pay the End-of-Service Gratuity. Summary dismissal (without notice or indemnity) is only permitted for gross misconduct, such as fraud, causing significant financial loss to the employer, or breach of safety rules.
Notice Period
Notice periods are based on the frequency of wage payment:
Monthly-paid employees: 3 months’ notice.
Other employees (Daily/Weekly): 1 month’s notice.
Indemnity in lieu: Either party can terminate immediately by paying the salary for the duration of the notice period.
Probation Period
The maximum probation period is 100 working days. During this window, the employer has the right to terminate the contract immediately and without notice. An employee may only be put on probation once for the same employer.