Kuwait at a glance
Taxes in Kuwait
Kuwait imposes no personal income tax on employment earnings. Employees receive their full gross salary net of social security contributions only.
| Contribution | Kuwaiti Nationals | Expatriates |
|---|---|---|
| Social Security — Public Institution for Social Security (PIFSS) | 11% | 0% |
| Contribution | Kuwaiti Nationals | Expatriates |
|---|---|---|
| PIFSS pension | 7.5% | 0% |
| Income Tax | 0% | 0% |
Expatriate workers are not covered by the Kuwaiti social security system but are entitled to end-of-service indemnity in lieu.
Employer of Record in Kuwait
What Is an Employer of Record?
An Employer of Record is the legal employer of your worker under Kuwaiti law. Remote& manages employment contracts, work visa sponsorship, payroll, and statutory benefits — so you can hire in Kuwait compliantly without registering a local entity.
How Remote& EOR Works
| Party | Role |
|---|---|
| Your Company | Recruits the worker, directs daily work, manages performance |
| Remote& | Signs the employment contract, sponsors the residence permit, processes payroll, manages statutory entitlements |
| Employee | Fulfills their role for your company under a Kuwait-compliant employment contract |
Ask Remi:
"Hire an Operations Lead in Kuwait City — 2,200 KWD/month, starting Q3" Remi handles contract drafting, residence permit coordination, payroll configuration, and end-of-service indemnity tracking — all in one conversation.
Benefits in Kuwait
End-of-Service Indemnity (Expatriates) Upon completing at least one year of service, expatriate employees are entitled to an end-of-service payment. The standard calculation is: 15 days of basic salary per year for the first 5 years, and 1 month of basic salary per year for each year thereafter.
Public Institution for Social Security (PIFSS) Kuwaiti nationals are enrolled in the PIFSS, which provides pensions, disability benefits, and survivors' coverage. Expatriates do not contribute to PIFSS but receive end-of-service indemnity instead.
- Private health insurance (standard for expatriate employees)
- Housing allowance
- Transportation allowance
- Annual flight ticket to home country
- Mobile phone allowance
- School fees support for dependents
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Annual Leave | 30 calendar days per year |
| Sick Leave | Up to 6 months per year (full pay first month, 75% for months 2–3, 50% for months 4–6) |
| Maternity Leave | 70 days (30 days before, 40 days after delivery) |
| Paternity Leave | 3 days |
| Hajj Leave | 21 days unpaid, once during the employment relationship |
Employment conditions
Working Hours
Standard hours are 48 per week (8 hours per day). During Ramadan, hours are reduced to 6 per day for Muslim employees. Overtime must be paid at a minimum 125% premium, or 150% for Friday/holiday overtime.
Probation
Probation may not exceed 100 days. Termination during probation requires 7 days' notice.
Payments
End of employment in Kuwait
Contracts may end through mutual agreement, expiry of a fixed-term contract, resignation with notice, or employer-initiated termination for cause. Indefinite-term contracts require a minimum of 3 months' notice from either party; the employment contract may specify a longer period.
Termination without valid cause entitles the employee to compensation equal to the notice period wages plus end-of-service indemnity. Final settlement must include all outstanding wages, accrued leave, and indemnity.
Frequently asked questions
Options include: using your home-country payroll (not viable — work visas and local contracts are required), engaging contractors (only for genuinely project-based work), establishing a Kuwaiti entity (significant regulatory overhead), or partnering with Remote& as your Employer of Record. The EOR route gives you a compliant employment structure and work permit sponsorship without local entity costs.