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POPULATION

5m

CURRENCY

د.ك (KWD)

CAPITAL CITY

Kuwait City

Overview

Kuwait, officially the State of Kuwait, is a country in the Middle East. Known for its rich oil reserves, modern infrastructure, and vibrant culture, Kuwait is a popular destination for tourism and cultural exploration. From the bustling streets of Kuwait City to the serene landscapes of the Kuwaiti desert, Kuwait offers a wealth of cultural and natural attractions.

Kuwait's economy is largely based on oil production, with efforts underway to diversify the economy and promote sustainable development. The country's strategic location and abundant resources make it an important player in the region.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Employment Contracts

Written Agreements

Per Kuwait's labor law, it is not mandatory to conclude employment contracts in writing. If made in writing, the agreement should be made in 3 copies: 1 for the employee, 1 for the employer, and 1 for submission to the Ministry of Social Affairs and Labor. Employment contracts must specify the date of contract signature, date of the employment start date, amount of remuneration, duration of the contract (if it is for a fixed term), and nature of work.

Oral Agreements

Kuwait's labor law states that if the employment contract is not written, it will still be deemed to exist, and the employee may establish their rights by all means of evidence.

Implied Agreements

Kuwait's labor law offers no provisions or guidance on implied employment contracts. Kuwait's labor law states that if the employment contract is not made in writing, it will still be deemed to exist, and the employee may establish their rights by all means of evidence.

Working Hours

Kuwait's labor law stipulates that the maximum working hours for private and public sector employees are 48 hours per week and 8 hours per day. During the month of Ramadan, the maximum working hours are 36 per week. Employees working more than this number of weekly or daily hours are eligible for overtime. Employees in the public sector are not allowed to work more than 2 overtime hours per day.

Juveniles shall work for a maximum of 6 hours per day and must not be employed for more than 4 hours straight, followed by a break of not less than 1 hour.

Public Holidays

Hijri New Year Day – Variable; Isra and Mi’raj Day – Variable; Three days on Eid-Al-Fitr – Variable; Waqfat Irafat – Variable; Three days on Eid-Al-Adha – Variable; Prophet’s Birthday – Variable; National Day – Variable; Gregorian New Year - January 1.

Probationary Period

Kuwait's labor law provides that employment contracts in the private sector can include probationary periods not exceeding 100 days. Both the employer and the employee can terminate the agreement during the probationary period without notice. An employee cannot be on probation more than once with the same employer. If the employer terminates the contract, they must pay the employee an appropriate end of service benefit.

Employees in government jobs can be put on probation for a maximum of 3 months.

Employment Termination/Severance

Notice Period

Per Kuwaiti labor law, an indefinite term employment contract can be terminated by providing advance notice as follows:

  • The notice period is 3 months for employees earning a monthly remuneration.
  • The notice period is 1 month for all other employees.

The notice period can be waived by paying remuneration in lieu of the prescribed notice period.

If the party wishing to terminate the contract does not abide by the notice period, that party shall be obliged to pay compensation for the notice period equal to the employee's remuneration for the same period.

Severance Benefits

Per Kuwaiti labor law, employees who are dismissed for the following reasons are entitled to severance benefits:

  • If the employer terminates the contract
  • If the duration of the contract expires without renewal
  • If the contract is terminated due to bankruptcy, death of the employee, or is terminated by the employee for valid reasons
  • If a female employee terminates the contract due to marriage within a year from the date of marriage

Employees are entitled to an end-of-service benefit as follows:

  • Employees paid daily, weekly, hourly, or piecework are entitled to 10 days' remuneration for each of the first 5 years of service and 15 days' remuneration each year after that. The total end-of-service benefit cannot exceed 1 year's remuneration.
  • Employees paid monthly are entitled to 15 days' remuneration for each of the first 5 years of service and 1 month's salary for every year after that. The total end-of-service benefit must not exceed 1 and a half years' remuneration.

Employees are entitled to half of the above end-of-service benefits stipulated if they terminate an indefinite-term work contract and have been at the employer's service for at least 3 years but not more than 5 years. If the service period reaches 5 years but does not exceed 10 years, the employee is entitled to two-thirds of the benefit. The employee is entitled to the full benefit if the service period exceeds 10 years.

Compensation

Minimum Wage

Kuwait's labor law requires all employees to receive at least the minimum wage. The Ministry of Social Affairs and Labour sets this wage at least once every 5 years. It was last set at KWD 75 (Kuwaiti dinars) per month in 2017.

Kuwaiti labor law requires employers to pay monthly-salaried employees at least once a month and no later than 7 days after the end of the month. It also requires employers to pay hourly, daily, and weekly employees every 2 weeks.

Overtime, Holiday & Vacation Pay

Kuwait's labor law stipulates that the maximum working hours for private and public sector employees are 48 hours per week and 8 hours per day. The maximum working hours are 36 per week during the month of Ramadan. Employees working more than this number of weekly or daily hours are eligible for overtime. Employees in the public sector are not allowed to work more than 2 overtime hours per day.

Overtime work cannot exceed 2 hours per day, 180 hours per year, 8 days a week, or 90 days a year. Employees are also entitled to 125% of their regular hourly remuneration for the overtime period.

If an employee is required to work during an official holiday, they are entitled to 200% of their regular hourly rate and an additional day off. Employers must pay their employees the employee's regular remuneration before they take their annual leave.

Immigration & Visas

Visas

Kuwait offers the following kinds of visas:

  • Family visitors visas - issued to persons visiting Kuwait to see their family based on a No Objection Certificate (NOC) issued by the Directorate General of Immigration Affairs upon request by the host.
  • Medical treatment visitor visas - issued to people coming for medical treatment based on a certificate from the Ministry of Public Health.
  • Business visitor visas - issued to persons who enter Kuwait to conduct any industrial activity, profession, or craft, based on a license from the competent authorities to carry on the activity, profession, or craft.
  • Working entrance visas - issued to persons to enter Kuwait for employment in government or private organizations based on a permit issued by the Ministry of Social Affairs and Labor and an NOC certificate issued by the General Directorate of Immigration Affairs at the request of the employer.
  • Student visas - These visas are issued to persons who enter Kuwait to study on the basis of a certificate from the governmental educational authorities confirming the student's acceptance of the study.

Work Permits

Employers are prohibited from employing expatriate employees unless authorized by the relevant authorities. Foreign nationals who wish to work in Kuwait are required to obtain a work permit. The following documents must be submitted:

  • Signed application
  • Salary certificate from the Labor Inspection Department
  • Copy of educational qualification certificates
  • Copy of the employer's civil card
  • Copy of the employee's passport
  • Copy of the employee's driver's license from their country of origin
  • Copy of any professional license
  • Proof of payment of a fee.

The permit is valid for an initial duration of 5 years and is renewable.

Population 5m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

100%

Urban Population

99.8%

Internet access

74.5%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Vacation Leave

Per the labor law of Kuwait,employees accrue or accumulate annual leave after 6 months of service. Employees in the private sector are entitled to 30 working days of paid annual leave.

Weekends, official holidays, and sick leave falling during the annual leave are not counted as annual leave. Employees are entitled to a leave for the fractions of the year in proportion to the period they spent working, even during the first year of service. Employers must pay their employees before they take their annual leave. Employers also have the right to determine the date of annual leave. Annual leave can be divided after the first 14 days with the employee's consent. Also, employees have the right to accumulate their leave for 2 years and take all of it at once with their employer's consent. The annual leave can be accumulated for more than 2 years with the consent of both parties. Employees are entitled to compensation for their accumulated and unused leave upon the expiration of their contract.

Sick Leave

Kuwait's labor law entitles both private and public sector employees to annual sick leave as follows:

  • 15 days at full pay
  • Next 10 days at 75% pay
  • Next 10 days at 50% pay
  • Next 10 days at 25% pay
  • Next 30 days without pay.

Employers are liable for sick leave benefits. Employees must provide a medical report from the doctor appointed by the employer or a doctor at a government medical center. In the event of a conflict regarding the necessity of sick leave or its duration, the government doctor's report shall be adopted.

Maternity Leave

Kuwaiti labor law provides a paid maternity leave of 70 days to pregnant employees. The employee may take a maximum of 30 days of maternity leave before the date of delivery and 40 days after delivery. The employee is entitled to 100% of their earnings during maternity leave. The employer is responsible for paying these maternity benefits. After the end of maternity leave, the employer may give the working woman, at her request, unpaid leave for a period not exceeding 4 months to care for the baby.

The employer may not terminate a woman's services during this leave or while the employee is absent from work due to a sickness corroborated by a medical certificate explaining that the illness resulted from pregnancy or childbirth.

Paternity Leave

Kuwaiti labor law does not provide statutory paternity leave.

Social Security

Pension

The retirement age in Kuwait is 55 years. To be eligible for a basic retirement pension, individuals must have paid at least 15 years of contributions. Employees may avail themselves of early retirement at the age of 50 with 20 years of contributions. The retirement pension is 65% of the employee's monthly remuneration. It is increased by 2% for each year of service exceeding 15 years, up to a maximum of 95% of the monthly payment.

A supplementary pension fund is also available to insured members. Supplementary pensions are calculated based on contributions made to this fund and are added to the basic pension.

If the insured person's contributions are not sufficient for a retirement pension eligibility, the insured becomes eligible for a retirement bonus. The bonus is calculated as 10% (per year) of the last salary for the first 5 years of service, 12% (per year) for the next 5 years, 15% (per year) for the next 3 years, and 20% (per year) for the remaining years.

Dependents/Survivors Benefits

The social security fund of Kuwait provides for pensions to survivors of the insured. The following survivors are entitled to a pension if the deceased received or was eligible for an old-age pension:

  • Widows
  • Dependent widowers who are unable to work
  • Sons up to the age of 26 years (28 years if studying and for a lifetime if disabled)
  • Unmarried daughters
  • Dependent parents
  • Siblings
  • Grandchildren.

Survivors are entitled to 100% of the old-age pension that the deceased received or was entitled to receive. The pension is divided if there are multiple survivors.

If the deceased employee was not entitled to a pension, survivors would receive a grant equal to 2 months' of the deceased's salary. The minimum amount is as follows:

  • Widow or widower - KWD 242 (Kuwaiti dinars)
  • Parents - KWD 190
  • Sons and grandchildren - KWD 122
  • Siblings - KWD 122.

Invalidity Benefits

Kuwait's social security fund provides disability pensions to persons who have at least 15 years of contributions.

In the case of total disability, there is no limitation of contributions. Totally disabled individuals can retire from employment within 2 years of the onset of disability. The invalidity pension is equal to 65% of the employee's monthly remuneration (75% for military personnel). It is increased by 2% for each year of service exceeding 15 years, up to a maximum of 95% of the monthly remuneration.

Employees who are disabled due to an occupational injury or disease are entitled to 100% of their regular earnings for up to 6 months, then 50% of their earnings until full recovery or certification of permanent disability. The employer bears the total cost of these payments.

Minimum Age

The legal minimum age of employment in Kuwait is 15 years. In government jobs, the minimum age is 18 years. Persons under 18 years of age cannot be employed in industries or professions that are hazardous or harmful to their health. They must undergo a medical examination before starting employment and have periodic medical exams at least every 6 months. Minors are allowed to work for a maximum of 6 hours per day and may not work overtime, on weekly rest days, on official holidays, or at any time between 7:00 PM and 6:00 AM. Minors cannot be employed for more than 4 hours straight without being granted a break of at least 1 hour.

Unemployment 2.1%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

73.8%

Labor force population share

24.1%

Female share of labor force

78%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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