Can I hire an employee in Kuwait without setting up a company?

Yes, subject to quota. An Employer of Record employs your chosen hire on its own Kuwaiti commercial licence and sponsors the Article 18 work permit. The practical constraint is Kuwaitization: the Public Authority for Manpower checks an employer's labour file before issuing permits, so feasibility depends on available quota in the relevant sector.

Is salary taxed in Kuwait?

No. Kuwait levies no personal income tax on employment income. Expatriate employees also fall outside the Public Institution for Social Security, which covers Kuwaiti and GCC nationals only. For expatriates the long-service benefit is the statutory end-of-service indemnity.

Employer of Record · Kuwait

Employer of Record Kuwait: hire employees without opening a company.

We become the legal employer and sponsor of your team in Kuwait. Article 18 work permits, Labour Law contracts, WPS payroll and end-of-service indemnity, all handled on our own licence and labour file, so you can put people on the ground in Kuwait City without incorporating.

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1–3 weeks for transfers in Kuwait0% personal income taxFull PAM and WPS compliance

Why an EOR

Employer of Record Kuwait: the practical way into a difficult market

Kuwait is among the harder Gulf markets to hire in. Sponsorship is tied to a licensed local employer, and the Public Authority for Manpower checks an employer's workforce composition before it issues work permits. An Employer of Record that already holds a licence, a labour file and available quota removes that barrier.

Sponsorship, already in place

We hold the Kuwaiti commercial registration and the PAM labour file. A candidate already in Kuwait with transferable residency can move to us in one to three weeks, without you registering anything.

Compliance is ours

Labour Law No. 6 of 2010 governs contracts, notice, leave, working hours and indemnity, and salaries must run through the Wage Protection System. We carry that as the legal employer.

No entity, no local partner

No commercial registration of your own, no Kuwaiti shareholder, no capital and no KDIPA application. Pay one monthly fee per employee and scale as your project requires.

Personal income tax on salaries

48 hrs

Standard working week, 36 in Ramadan

30 days

Statutory annual leave entitlement

1.5 yrs

Cap on end-of-service indemnity

Before anything else

We check whether your hire is actually possible

Kuwait operates a nationalisation policy. The Public Authority for Manpower reviews an employer's labour file, and its ratio of Kuwaiti nationals to expatriates, before granting or renewing Article 18 permits. Where a file is short of its sector requirement, new permits are blocked until it is corrected.

That means no honest provider can promise every hire in every sector. Our first step is always a feasibility check against the role, the sector and the candidate's nationality and current status. If it cannot be done compliantly, we will tell you before you commit.

Explore all services

Article 18 work-permit sponsorship on our labour file
Arabic or bilingual Labour Law contracts
WPS payroll in Kuwaiti dinars through a local bank
End-of-service indemnity accrued and settled
PIFSS registration for Kuwaiti and GCC nationals
Mandatory health insurance and residency renewals
Civil ID, medical and biometrics coordination
Compliant offboarding and permit cancellation

How it works

Four steps to a compliant Kuwaiti hire

Feasibility check

We confirm quota, sector and the candidate's status, whether they are in Kuwait on transferable residency or being recruited from abroad.

Days 1–3

Contract & offer

We issue a Labour Law-compliant offer and an Arabic or bilingual employment contract for your candidate to sign, filed with the authorities.

Days 3–7

Permit & residency

Article 18 permit through the Ashal portal, entry visa where needed, medical, fingerprints, iqama and Civil ID, plus health insurance.

1–8 weeks

Payroll & manage

Salary runs through WPS each month. We accrue indemnity, track leave, handle renewals and manage any changes you need.

Ongoing

Kuwaiti labour law, in brief

What every Kuwait employment contract must respect

These reflect Labour Law No. 6 of 2010 and current practice. We build each contract to these rules so nothing is left to interpretation.

Topic	Standard	Notes
Governing law	Labour Law No. 6 of 2010	Administered by PAM; Arabic prevails in disputes
Work permit	Article 18, private sector	Employer-sponsored, typically two years, renewable
Income tax	None	No personal income tax on employment income
Social security	Kuwaiti and GCC nationals only	PIFSS; expatriates are outside the scheme
Working hours	8 per day / 48 per week	Reduced to 36 per week during Ramadan
Probation	Maximum 100 days	Either party may terminate during probation
Annual leave	30 days	Accrues after nine months in the first year
Notice	3 months, monthly-paid	1 month for other employees; payment in lieu permitted
End of service	15 days per year, then 1 month	After five years; capped at 1.5 years' remuneration
Salary payment	Via WPS	Kuwaiti dinars through a local bank

Read the full breakdown in our Kuwait hiring guide.

Employer of Record

Hire now, no entity

We sponsor and employ on our existing licence and labour file. No Kuwaiti shareholder, no capital, no KDIPA process. Suited to project work, tender delivery and testing the market, and simple to unwind when a contract ends.

Your own entity

Incorporate in Kuwait

Either a WLL with a Kuwaiti partner holding the majority, or a KDIPA licence permitting up to full foreign ownership in eligible sectors with investment incentives. Both take months, carry their own quota obligations, and make more sense at sustained headcount.

Common questions

Hiring in Kuwait, answered

What does EOR Kuwait mean?

EOR Kuwait is shorthand for Employer of Record services in Kuwait. A Kuwaiti licensed company becomes the legal employer and sponsor of your chosen hire, holds the Article 18 work permit on its own labour file with the Public Authority for Manpower, and runs WPS payroll, while you direct the day-to-day work.

Can you guarantee you will get the permit?

No, and we would be wary of anyone who does. Permit issuance depends on the employer's labour file position, the sector, the role and the candidate's nationality, and the authorities apply nationalisation requirements. What we can do is check feasibility honestly before you commit, and tell you plainly when something is not achievable.

Is salary really tax-free?

There is no personal income tax in Kuwait, so employees keep their full salary. Expatriates also sit outside the social-security scheme, which covers Kuwaiti and GCC nationals only. Their long-service benefit is the end-of-service indemnity, which we accrue for you.

How quickly can someone start?

A candidate already in Kuwait with transferable residency can often move in one to three weeks. Recruiting an expatriate from abroad typically takes four to eight weeks once the permit, visa, medical, iqama and Civil ID chain is complete.

What does it cost?

A flat monthly fee per employee, plus the gross salary and pass-through statutory costs such as permit fees, health insurance and the indemnity accrual. See our pricing page for how the model works.

Ready to hire in Kuwait?

Tell us the role and the candidate's status and we will come back with a feasibility view, cost and timeline, usually within one business day.

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