Payroll and Benefits Guide Kuwait
Last updated: Mar 03, 2026
Contribution
|
Employer Payroll Contributions
|
|
|
11.50%
|
Pension (up to a ceiling of 2,750 KWD) |
| 0.5% | Unemployment |
| 12.00% |
Total Employment Cost
|
|
Employee Payroll Contributions
|
|
|
2.50%
|
Social Security (up to a ceiling of 1,500 KWD) |
| 8.00% | Pensions (up to a ceiling of 2,750 KWD) |
| 0.5% | Unemployment |
| 8.50% – 11% |
Total Employee Cost
|
|
Employee Income Tax
|
|
| There is no personal income tax in Kuwait. | |
Employer taxes
Employee taxes
Minimum Wage
General
In Kuwait, minimum wages vary depending on the job role; for example, the minimum wage is 75 KWD per month in the private and oil sectors and 60 KWD per month for domestic workers.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payment of wages may be determined per hour, per day, per week, per month, or per project. Wages shall be paid on one of the official working days and at the workplace of the employees, in the currency legally in circulation, subject to the following provisions:
- The employer shall pay employees on a monthly pay schedule at least once per month
- The employer shall pay hourly employees day laborers, employees on a weekly wage or on a project basis at least once every two weeks
13th Salary
There are no provisions in the law in Kuwait to provide a 13th salary.
Working Hours
General
The standard working week in Kuwait is 48 hours. Office hours are usually from 8:30 am, or 9:00 am to 5:30 pm or 6:00 pm.
During the month of Ramadan, the work day is reduced to 36 hours per week, and legally this should apply to all staff, but many companies only apply it to Muslims, who fast during daylight hours. In addition, Friday is the Muslim rest day. For those working a five-day week, the other rest day can be either Thursday or Saturday, with Saturday being the more popular choice. Employees are entitled to a weekly rest period of at least 24 continuous hours after six consecutive working days.
Overtime
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Maximum Ordinary Hours (Article 65): The standard work limit is 8 hours per day and 48 hours per week (typically spread over six days). Any work beyond these hours is considered overtime.
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Ramadan Exception: During the holy month of Ramadan, working hours for Muslim employees are reduced to 6 hours per day or 36 hours per week.
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Daily Overtime Cap (Article 66): Overtime work is strictly limited to a maximum of 2 hours per day.
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Annual Overtime Cap (Article 66): Overtime work must not exceed 180 hours per year. Some sources also cite a weekly cap of 6 hours and a maximum of 90 days per year.
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Authorization: Overtime is permitted in limited circumstances and generally requires the employer’s request and maintenance of a special overtime record.
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Exemptions: Employees in senior managerial or supervisory positions may be exempt from the overtime provisions.
Mandatory Overtime Pay Rates (Article 66 & 67)
Overtime compensation is mandatory and is calculated as a minimum premium percentage of the employee’s regular hourly wage. The compensation for rest days and public holidays involves both premium pay and compensatory leave.
| Day/Condition | Minimum Compensation Rate (Statutory) | Total Pay Rate | Compensatory Leave |
| Normal Overtime (Daytime) | +25% of the regular hourly wage. | 125% | None required by law. |
| Nighttime Overtime (7:00 PM to 6:00 AM) | +50% of the regular hourly wage. | 150% | None required by law. |
| Weekly Rest Day (e.g., Friday) | +50% of the regular hourly wage. | 150% | Mandatory alternative (compensatory) day off. |
| Public Holiday Work | +100% of the regular hourly wage (Double pay). | 200% | Mandatory alternative (compensatory) day off. |
Compensation Note:
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For work performed on a Weekly Rest Day or Public Holiday, the employer is obligated to provide both the pay premium and a separate compensatory day off. This is a non-negotiable statutory entitlement.
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Any employment contract or policy that provides rights better than the minimum statutory requirements (e.g., higher premium rates or time off in lieu for ordinary overtime) becomes a contractual entitlement that cannot be unilaterally reduced by the employer.
Leave
Annual Leave (vacation)
Employees are entitled to 30 working days paid leave per year, following completion of one year of service.
In addition, an employee working for the same employer for two consecutive years is entitled to 21 days leave with pay to perform Al-Hajj, (only possible once in a lifetime).
PTO carryover
In Kuwait, statutory annual leave can be carried over by agreement, but generally only for one year. Employers cannot forfeit accrued statutory leave with a blanket “use-it-or-lose-it” policy, and any unused leave must be paid out on termination.
Public Holidays
If a holiday falls on a Friday (resting day of the week), it is carried forward to the following working day.
Some religious holidays are determined by the lunar cycle and will show as ‘Tentative’ until they are confirmed nearer the date of the holiday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 16 January 2026 | Friday | The Prophet’s Ascension | Standard holiday |
| 25 February 2026 | Wednesday | Kuwait National Day | Standard holiday |
| 26 February 2026 | Thursday | Kuwait Liberation Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr (1st Day) | Standard holiday |
| 21 March 2026 | Saturday | Eid al-Fitr Holiday (2nd Day) | Standard holiday |
| 22 March 2026 | Sunday | Eid al-Fitr Holiday (3rd Day) | Standard holiday |
| 26 May 2026 | Tuesday | Day of Arafat (Waqfat Arafat) | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (1st Day) | Standard holiday |
| 28 May 2026 | Thursday | Eid al-Adha Holiday (2nd Day) | Standard holiday |
| 29 May 2026 | Friday | Eid al-Adha Holiday (3rd Day) | Standard holiday |
| 16 June 2026 | Tuesday | Islamic New Year | Standard holiday |
| 27 August 2026 | Thursday | The Prophet’s Birthday | Standard holiday |
Sick Days
Employees who have been employed for at least one month are entitled to receive paid sick pay at the following rate.
- 15 days at full pay
- Ten days at ¾ pay
- Ten days at 1/2 pay
- Ten days at 1/4 pay
- 30 days unpaid
It is mandatory for all employees to be provided government medical insurance.
Maternity Leave
Pregnant employees are entitled to 70 days of paid maternity leave, 30 days before the due date, and 40 days after they give birth.
Employee may request up to four additional months unpaid leave following the end of their maternity leave.
Paternity Leave
There is no statutory paternity leave in Kuwait.
Parental Leave
There is no statutory parental leave in Kuwait.
Other Leave
- Employees are entitled to up to 3 days of bereavement leave for the death of a member of their immediate family.
- 21 days paid, once in employment, if the employee has completed at least 2 years of service and has not performed Hajj previously.
- A Muslim woman whose husband dies is entitled to a fully paid leave for four months and ten days. A non-Muslim woman whose husband dies is entitled to a fully paid leave of 21 days.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Employers can terminate a fix term contract for the following reasons – business, personal or worker’s’ misconduct. Termination requires notice and a written explanation. If the reason is misconduct, a warning needs to be given and the employee gets a chance to explain their actions.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Wages must be paid by the 7th day of each month. | Upon termination, employees are entitled to wages, unused leave and end-of-service indemnity (if eligible). | Employers are required to transfer salaries into the worker’s bank account no later than the 7th day after the due payment date. |
Notice Period
In Kuwait, there is a requirement for at least three months’ notice to be provided by both the employer and the employee. The parties can agree on a longer notice period.
Severance Pay
Severance pay in Kuwait is dependent on the length of service of the employee.
Employees paid monthly are entitled to 15 days’ pay for each year of employment for the first five years of service, increasing to one month per year of service after that up to a maximum of 1.5 times the annual salary.
Employees paid by the hour, day, or week are entitled to receive ten days’ salary for each year of employment at the company up to 5 years, and 15 days for each year after that, up to a maximum of 1 year of salary.
Probation Period
In Kuwait, an employee’s probation period can be no longer than 100 days.
Immigration
Kuwait’s immigration system provides limited options for employers of foreign nationals. The petroleum-based industry dominates Kuwait’s open economy, and financial services are the largest non-petroleum industry in the region.
Business visitors may secure a commercial visit visa sponsored by an entity in Kuwait. Travelers of certain nationalities may be eligible for visas-on-arrival or hotel-sponsored visit visas.
The employment of foreign nationals in Kuwait is heavily restricted, and the government strongly promotes the employment of Kuwaiti citizens. Recent nationalization policies focus on replacing foreign nationals with Kuwaitis in the public sector.
As part of the immigration process, foreign nationals must secure an entry visa and obtain work and residence permits. Local sponsorship is mandatory.
Find the estimation here and the guide for issuing a WP for foreigners here.
VAT
General
Kuwait does not impose VAT in its territory.
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Payroll and Benefits Guide
in Kuwait
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 16 January 2026 | Friday | The Prophet’s Ascension | Standard holiday |
| 25 February 2026 | Wednesday | Kuwait National Day | Standard holiday |
| 26 February 2026 | Thursday | Kuwait Liberation Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr (1st Day) | Standard holiday |
| 21 March 2026 | Saturday | Eid al-Fitr Holiday (2nd Day) | Standard holiday |
| 22 March 2026 | Sunday | Eid al-Fitr Holiday (3rd Day) | Standard holiday |
| 26 May 2026 | Tuesday | Day of Arafat (Waqfat Arafat) | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (1st Day) | Standard holiday |
| 28 May 2026 | Thursday | Eid al-Adha Holiday (2nd Day) | Standard holiday |
| 29 May 2026 | Friday | Eid al-Adha Holiday (3rd Day) | Standard holiday |
| 16 June 2026 | Tuesday | Islamic New Year | Standard holiday |
| 27 August 2026 | Thursday | The Prophet’s Birthday | Standard holiday |
How long do employers keep records of past employees in kuwait?
The retention period is not mandated nor defined by law, but the general retention period is 5 years.
Min employement period to be eligible for Indeminity?
This question is too vague to answer, is it referring to a fixed contract ? severance?