Employment taxes

• Income tax: There’s none. You keep 100% of what you earn.
• Social security: Employees contribute with 10.5%, calculated on the basic salary plus allowances

Leave policy

• Annual leave: 30 calendar days after one year of service.
• Public holidays: Kuwait observes 9 national public holidays
• Sick leave: Up to 75 days, with full pay for the first 15 days, and partial pay (25%-75%) depending on duration. From day 45 the sick leave is unpaid.
• Maternity leave: 70 days fully paid + up to 4 months unpaid extension possible.

Employment termination

• Notice period: Depends on tenure, up to 5 years of service minimum 1 month of notice period is required, for more than 5 years of service 3 months of notice period.
• Severance: Employees receive severance pay based on years of service (usually 10 days’ pay per year for the first 5 years, for more than 5 years of service 15 days' pay per year)
• Valid grounds for termination: misconduct, negligence, fraud, confidentiality breach, absence, assault, redundancy, or mutual agreement.

Hiring and contracts

• Contracts must be written in Arabic or can be bilingual.
• They can be fixed-term or indefinite, with clear terms on salary, leave, working hours, and benefits.
• Probation period up to 100 days

Payroll and salary payments

• Salaries are paid monthly in Kuwaiti Dinar (KWD) via local bank transfer.
• Minimum wage: KWD 325/month (€913/$1060) for the private sector.
• Employers are required to provide payslips and pay within 7 days of the due date.

Benefits

Mandatory:

• Paid annual leave
• Sick leave/Maternity leave
• End-of-service benefits
• Social security contributions

Optional:

• Health insurance
• Housing or housing allowance
• Transportation or car allowance
• Annual flights home
• Performance bonuses

Monthly Living Costs (Kuwait City)

• Rent (1BR city center): KWD 300-450 (€900-1350 / $980-1470)
• Utilities (electricity, cooling, water, internet): KWD 40-60 (€120-180 / $130-200)
• Groceries: KWD 100-150 (€300-450 / $325-490)
• Transport: KWD 20-30 (€60-90 / $65-100)
• Dining out: KWD 5-10 (€15-30 / $16-33)

How to get a local ID number

• After receiving your residency visa, you’ll be issued a Civil ID by the Public Authority for Civil Information (PACI).
• Required documents: passport, residency permit, work visa, and employer sponsorship letter.
• Remote workers need a valid residence permit or business sponsorship to apply.

Social security registration

• Kuwaiti citizens register automatically through their employer.
• Expats are usually excluded, but may contribute voluntarily or through private insurance.

Banking

Opening a bank account is simple once you have your Civil ID.
Popular banks:

• National Bank of Kuwait (NBK)
• Gulf Bank
• Burgan Bank
• Kuwait Finance House

You’ll need your Civil ID, passport, and proof of address. Online banking and mobile apps are widely available.

Housing and rental process

• Rentals are mostly unfurnished, and leases run 1 year with renewal options.
• Tenant rights: You can’t be evicted without a valid reason, and rent increases are regulated.
• Always get a written contract and check if utilities are included.
• Popular expat areas: Salmiya, Hawalli, Mahboula, and Kuwait City center.

Healthcare system

• Kuwait has a public healthcare system that’s affordable and high-quality.
• Expats usually use private clinics with employer-provided health insurance.
• Major hospitals: Mubarak Al-Kabeer, Al-Sabah, and Dar Al Shifa.

Driving and public transport

• You can drive with an international license initially, then apply for a local one through the Ministry of Interior.
• Roads are excellent, and gas is cheap.
• Public transport includes buses and taxis; however, most expats prefer driving or ride-hailing apps like Careem.

Emergency and important contacts

• Police, fire, ambulance: 112
• Public authority for manpower: +965 2205 1426

Work permit and visa requirements

• All foreign nationals need a work permit, a work visa, and then a residency permit, all of which are usually arranged with the help of your employer
• The employer is responsible for initiating the work permit application.
• After obtaining the work permit, you apply for a work visa at the nearest Kuwaiti embassy or consulate in your home country. You’ll also need to provide a valid passport, passport photos, medical test results, and a police clearance certificate.
• Once in Kuwait, within 30 days of arrival, your employer will help you apply for your residency permit (Iqama).
• Once approved, you’ll receive your Civil ID and can start working legally.

Business culture and work norms

• Work week: Sunday-Thursday, 8 AM-5 PM.
• Punctuality matters, but flexibility around prayer times is common.
• Dress modestly, especially in formal meetings.
• Expect hospitality, friendly negotiations, and tea in every meeting.