How to hire remote employees in

Kuwait

Found someone in Kuwait you’d love to hire, but less excited about the prospect of spending the next 3+ months buried in legal paperwork and fees? You’re in the right place. In the next few minutes, you’ll learn how you can hire remote talent in Kuwait without all the fees and headaches.

Country snapshot

CURRENCY
Kuwaiti Dinar (KWD)
EMPLOYER TAXES
11.5%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Arabic

What to know before you hire in 

Kuwait

Want to hire someone in Kuwait? Excellent. But, no matter where you’re from, labor laws in Kuwait are different from those in your home country (unless you’re from Kuwait, of course). Read on to learn about your options, plus as the easiest way to make remote hires in Kuwait.

If you want to successfully hire in 

Kuwait

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Kuwait

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Kuwait

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Kuwait

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Kuwait

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Kuwait

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Kuwait

?

If you’re hiring contractors in 

Kuwait

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Kuwait

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Kuwait

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Kuwait than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Kuwait.

Taxes in 

Kuwait

Employer tax

Pension

Unemployment

Individual tax

Leave

Paid Time Off (PTO)

PTO is calculated by the:

  • The minimum paid leave is 30 days, beginning after 9 months of service.
  • An employee working for the same employer for two consecutive weeks is entitled to 21 days leave with pay to perform Al-Hajj, as long as the employee has never performed it before.  

Public Holidays

There are 8 public holidays consisting of 13 days off.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

         After the employee provides a written medical report from a doctor:  

  • 15 days at full pay
  • 10 days at ¾ pay
  • 10 days at 1/2 pay
  • 10 days at 1/4 pay
  • 30 days without pay.

Maternity Leave

Maternity leave is 70 days paid, and up to 4 additional months unpaid.

Paternity Leave

There is no paternity leave. 

Parental Leave

There is no parental leave.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

Three days paid leave in the event of the death of first or second-degree relatives.  

A Muslim woman whose husband dies is entitled to a fully paid leave for four months and ten days. A non-Muslim woman is entitled to 21 days of paid leave.

Termination

Termination Process

Termination requires 3–months’ notice from either side for employees with a monthly salary or one month for all others.  

A contract can be terminated without notice or compensation in the event that the employee caused significant monetary loss, committed fraud, or disclosed secrets that led to losses. 

Notice Period

The notice period in Kuwait is:

3-months’ notice from either side for employees with a monthly salary or one month for all others.

Severance Pay

Employees paid on a monthly basis receive 15 days remuneration for each year of employment at the company up to 5 years and a month for each after that, up to a limit of 1.5 years of salary.  

Employees paid by the hour, day, or week receive 10 days’ salary for each year of employment at the company up to 5 years, and 15 days for each year after that, up to 1 year of salary.  

Probation Period

A probation period can be no longer than 100 days.

Employee requirements in 

Kuwait

Working Hours

Kuwaiti law defines the maximum workweek at 48 hours/6 days a week at 8 hours per day. Most companies work 5-day weeks, with Friday and Saturdays off. Those working 6 days get Friday off.  

During the month of Ramadan, the working hours are reduced to 6 per day.  

Employees are entitled to a one-hour break after working five straight hours. The hour is not part of the day’s work.  

Overtime

Overtime should not be more than 2 hours per day, 3 days per week, or 90 days a year. It pays 1.25x regular salary.  

Working on a Friday earns 1.5x regular salary and a compensatory day off.  

Working on a national holiday earns 2x regular salary.  


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