Private-sector employment in Kuwait is governed by the Labour Law for the Private Sector (Law No. 6 of 2010), with the Public Authority for Manpower overseeing contracts and work permits. There is no personal income tax, but social security for Kuwaiti nationals and end-of-service indemnity for all staff are key payroll items. Here is what employers need to know about leave, pay and ending employment.
The Labour Law sets minimum leave for private-sector employees. Employment contracts and company policies can be more generous, but employees cannot waive their statutory leave.
30 working days of paid leave a year, available after 9 months of service in the first year (pro-rata before that). Leave can be carried over for up to 2 years and unused leave is paid out when employment ends.
45 paid days on a sliding scale, then 30 unpaid days, supported by a medical certificate. See the table below.
Fully paid by the employer: 30 days before and 40 days after the birth. Up to 4 more months of unpaid leave can be granted on request.
Paid leave once during employment, for employees with at least 2 years of service who have not performed Hajj before.
| Sick leave days | Pay |
|---|---|
| First 15 days | 100% |
| Next 10 days | 75% |
| Next 10 days | 50% |
| Next 10 days | 25% |
| Next 30 days | Unpaid |
The Labour Law has no statutory paternity or parental leave. Many employers offer a few days of paid paternity leave as a policy benefit.
Set up each Kuwaiti leave type in IceHrm with its own accrual, carry forward and approval rules, including the 2-year carry-over limit on annual leave and a one-off Hajj leave type. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Kuwait sets a monthly minimum wage for the private sector by ministerial decision. It has not changed since 2017, but it is meant to be reviewed periodically.
For private-sector workers, in effect since June 2017. Domestic workers have the same rate under a separate law (since May 2022).
8 hours a day, with a break of at least 1 hour after 5 consecutive hours. Reduced to 36 hours a week during Ramadan.
Of the normal hourly wage. Overtime is capped at 2 hours a day, 6 hours a week, 180 hours and 90 days a year.
Employees are entitled to 24 consecutive hours of paid rest after every 6 working days. Work on the weekly rest day is paid at 150% plus a replacement day off, and work on a public holiday at 200% plus a replacement day off. Outdoor work is banned between 11:00 and 16:00 from 1 June to 31 August.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so the 125%, 150% and 200% rates are paid on what was actually worked, and overtime stays within the legal caps. Time & attendance →
Kuwait does not tax the income of individuals, so employers do not withhold income tax from salaries. The main payroll deductions are social security contributions for Kuwaiti nationals.
Kuwait has signed the GCC VAT framework agreement but has not introduced VAT. A 2.5% National Labour Support Tax applies to the profits of Kuwaiti companies listed on the stock exchange, not to salaries.
Social security through the Public Institution for Social Security (PIFSS) applies only to Kuwaiti nationals. For expatriate employees there are no social security contributions, but employers must pay end-of-service indemnity when employment ends.
For Kuwaiti employees, on monthly salary up to a ceiling of KWD 2,750. Covers pensions, disability, sickness and death benefits.
8% of salary up to KWD 2,750, plus a further 2.5% on salary up to KWD 1,500, withheld by the employer.
No contributions for non-Kuwaiti employees. Budget instead for end-of-service indemnity and the health insurance cover the standard contract requires.
Build Kuwaiti pay the way you already structure it, with your own salary components, deductions and formula columns, such as a PIFSS column for Kuwaiti staff and an end-of-service accrual for everyone. Want to know how well IceHrm handles payroll calculations for Kuwait? Contact us or see Payroll →
Fixed-term contracts end on their expiry date. Indefinite contracts can be ended by either party with written notice. A dismissal without a valid reason is treated as arbitrary, and the employee can claim compensation on top of their end-of-service indemnity.
| How the employee is paid | Notice |
|---|---|
| Monthly | 3 months |
| Weekly, daily, hourly or piece rate | 1 month |
| During probation | None |
Employees receive an end-of-service indemnity when the employer ends the contract, when a fixed-term contract is not renewed, and in several other cases set by law. Part years count pro-rata.
| Years of service | Monthly-paid | Other workers |
|---|---|---|
| First 5 years | 15 days' pay per year | 10 days' pay per year |
| Each year after 5 years | 1 month's pay per year | 15 days' pay per year |
Final pay also includes accrued, unused annual leave. Employees made redundant, retiring, disabled at work or who die in service receive the full indemnity regardless of length of service.
Article 68 of the Labour Law gives private-sector employees the following fully paid public holidays, about 13 days a year in total. Islamic holidays follow the lunar calendar, so their Gregorian dates move about 11 days earlier each year, and the government confirms the exact days off annually.
Employees who work on a public holiday are paid double and receive a replacement day off.
Leave groups give each office its own public holiday calendar, so you can load Kuwait's dates once the moon-sighting announcements are made, alongside the calendars of your other offices. Holiday calendars →
Employment contracts must be in writing and in Arabic. A translation can be attached, but the Arabic text prevails in a dispute. Foreign nationals also need a work permit issued through the Public Authority for Manpower.
Probation cannot exceed 100 working days, and either party can end the contract during probation without notice. Fixed-term contracts must run for at least 1 year and at most 5 years, and can be renewed by agreement. The contract is made in 3 copies: one for each party and one filed with the Public Authority for Manpower.
Send Arabic and English contracts for e-signing, store them with work permits and civil ID copies on the employee's record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Kuwait, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Kuwait? Talk to us.
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