EOR Service in Kuwait

Hire, Onboard and Pay Employees in Kuwait Quickly and Efficiently

Hiring in Kuwait at a glance

CURRENCY
Kuwaiti Dinar (KWD)
working hours
48 hours
public/bank holidays
8 public holidays
capital
Kuwait City
language
Arabic
date format
DD/MM/YYYY
remote workers
1.2M
tax year
N/A
minimum hourly salary
No minimum wage
CURRENCY
Kuwaiti Dinar (KWD)
working hours
48 hours
public/bank holidays
8 public holidays
capital
Kuwait City
language
Arabic
date format
DD/MM/YYYY
tax year
N/A
payroll frequency
Monthly
GDP
$184.56 Billion (2022)

Employer of Record in Kuwait

A Kuwait Employer of Record helps foreign employers hire and expand in Kuwait without the need to register a local entity. By partnering with a Kuwait EOR or PEO foreign employers can forget the hassles of registering their business, opening bank accounts, hiring HR and compliance experts and focus on growth and expansion plans in Kuwait.

The EOR enables you to do this by acting as the primary employer for your Kuwait employees. This means that the onus of preparing employment contracts and paying employees falls on the EOR. Moreover, the EOR also absorbs all compliance risks freeing you up from any legal liabilities.

Why use Kuwait EOR?

Using a Kuwaiti EOR or PEO can be a smart choice for international companies entering Kuwait. Companies expand to new countries for fresh opportunities and to control costs.

Kuwait is known for its business-friendly environment and relatively low taxes. However, setting up HR operations and payroll there can be complex. This is especially due to its unfamiliar labor laws. Even experienced employers can make compliance mistakes.

This is because Kuwait’s labor landscape has a few distinct features. Kuwait has a large pool of expatriate workers for whom labor laws are different (from Kuwaitians). For example, if you are hiring an expatriate worker, you have to sponsor their work visas.   Unlike many Western countries that have structured pension systems, in Kuwait, expatriate workers receive an end-of-service benefit (often called an indemnity or gratuity). This benefit is a lump sum payment based on the duration of service and the last drawn salary.

By partnering with a Kuwaiti EOR/PEO, you can simplify important aspects of business operations like onboarding, payroll, and employee benefits. This lets you focus on your core business activities and strategy while navigating the Kuwaiti market confidently.

EOR Costs in Kuwait

EOR/PEO have two pricing methods: fixed and variable.

Fixed Pricing: With this method, EOR/PEO charge a clear and steady fee.

Kuwait EOR/PEO is a EOR/PEO that uses fixed pricing. Our pricing for Kuwait depends on the employment laws in the employee's location.

With Kuwait EOR/PEO, you get value for your investment. Employees hired through Kuwait EOR/PEO receive HR support, benefits management, and access to a real-time expense tracking dashboard.

Key Metrics For Foreign Employer

Kuwait’s ranks 61st globally in the talent competitiveness index. The country also ranks no.8 for digital skills and 6th for external openness -  the extent to which the market is open for foreign investments. All this suggest that the country is highly lucrative to set up shop and hire talent for your workforce.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Kuwait.

Factors Global Ranking Interpretation
Rule of law 48 Indicates effectiveness of law enforcement
Labour-employer cooperation 59 Indicates positive labor-employee relationships
Reading Maths, and Science n/a Indicates average scores in OECD's survey of 15-year old students
University Ranking 63 Indicates average QS rankings
Labour productivity per employee 9 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 66 Indicates findability of skilled talent
Workforce with tertiary education 62 Indicates % of workforce with PG degrees
Digital Skills 8 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Argentina.

Why work in Kuwait ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Kuwait

Expanding your team means hiring the right people for the right jobs. In Kuwait, it's important to set up a local entity to handle things like compliance, payroll, taxes, and benefits properly. The labor laws in Kuwait can be complex, and it's essential to follow them.

KuwaitPEO provides a complete Employer of Record (EoR) service. We take care of payroll, taxes, benefits, and compliance, so you can focus on what's important: supporting your employees and growing your business in Kuwait.

Risks of misclassification

"Employee misclassification" occurs when employers make mistakes in how they classify their workers. This can happen when an employer wrongly labels someone as an independent contractor or doesn't give them the benefits and rights they should have as an employee.

Choosing Kuwait EOR /PEO in Kuwait helps reduce the chances of employee misclassification. Kuwait EOR /PEO ensures that everyone abides by labor laws, accurately categorizes workers, handles payroll correctly, and offers complete benefits. This allows companies to concentrate on their main activities while experts manage employment-related duties.

Contact Us

Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

Calculate Now

Employing in Kuwait

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax 

There is no personal income tax in Kuwait.

Other Taxes and Social Security contribution:

Employer Payroll Contributions

Tax Employer Contribution
Pension (up to a ceiling of 2,750 KWD) 11.50%
Unemployment 0.5%
Total Employment Cost 12.00%

Employee Payroll Contributions

Contribution Rate
Social Security (up to ceiling of 1,500 KWD) 2.50%
Pensions (up to a ceiling of 2,750 KWD) 8.00%
Unemployment 0.5%
Total Employee Cost 8.50% – 11%

Separation

Employment Termination and Severance

Termination Process

If the employer wishes to terminate an employee in a permanent contract, then the employee must be given at least three months notice.

Employers have the authority to end a fixed-term contract for various reasons, including business needs, personal reasons, or misconduct by the worker. To terminate the contract, they must provide notice and provide a written explanation. In cases of misconduct, a warning should precede termination, allowing the employee an opportunity to clarify their actions.

Notice Period

In Kuwait, both the employer and the employee are obliged to give a notice period of three months.

Severance Pay

In Kuwait, the amount of severance pay an employee receives depends on their length of service. 

For employees paid on a monthly basis, they are entitled to 15 days' pay for each year of service during the first five years, and this increases to one month's pay per year of service thereafter, up to a maximum of 1.5 times their annual salary.

Employees who are compensated hourly, daily, or weekly, are entitled to ten days' salary for each year of service up to 5 years, and 15 days' salary for each year of service beyond that, up to a maximum of one year's salary.

Probation Periods

In Kuwait, the maximum duration for an employee's probationary period is limited to 100 days.

Start Hiring in Kuwait today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Are you Ready to
Experience Seamless Hiring in Kuwait ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Kuwait .

Speak to our Expert