Understanding Kuwait Labor Law: Your Complete 2025 Expat Guide
Moving to Kuwait for a new job? Congratulations. While it’s an exciting opportunity, navigating a new country’s employment rules can be confusing. This essential guide breaks down the 2025 Kuwait Labor Law (Law No. 6 of 2010) for private sector expatriates. We’ll translate the legal jargon into simple, clear advice so you can understand your rights and responsibilities from day one.
Your Employment Contract: The Most Important Document
Think of your contract as the foundation of your employment. Under Article 28, it’s a legal requirement, not a suggestion. Here’s what you must know.
The “Arabic First” Rule
Your contract must be in Arabic. While your employer will likely provide an English (or other language) translation, only the Arabic version is legally binding in a dispute.
Pro Tip: Do not sign until you’ve had a trusted, fluent Arabic speaker review the official contract. Ensure the translation perfectly matches the Arabic original, especially regarding salary, job title, and leave.
Types of Contracts
You will typically be offered one of two types:
- Fixed-Term Contracts: These have a specific start and end date. They are common for project-based work and automatically end unless both parties agree to renew.
- Unlimited (Indefinite) Contracts: These are open-ended and continue until you or your employer terminate them according to the law’s notice procedures. This offers more long-term security.
The 100-Day Probation Period
Employers can set a probation period of up to 100 working days (note: working days, not calendar months). During this time, either you or the employer can end the contract without notice. However, you are still entitled to your full salary and all other rights for the days you have worked.
Salary, Taxes, and Your Take-Home Pay
Let’s talk about compensation. This is often the biggest draw for expats in Kuwait.
The “No Income Tax” Benefit
This is the most significant financial benefit: Kuwait does not charge personal income tax. Your gross salary (the amount in your contract) is your take-home pay, minus any social security contributions (which only apply to Kuwaiti nationals) or specific deductions you’ve agreed to, like a company loan.
Minimum Wage & Salary Protection
As of 2025, the minimum wage for the private sector is 75 KWD per month. In reality, most professional expat salaries are significantly higher. This figure acts as a legal baseline.
Once your contract is signed, your employer cannot legally reduce your salary for the duration of the contract term without your written consent. Wages must be paid on time. Consistent late payments are a serious violation and can be reported to the Public Authority for Manpower (PAM).
Work-Life Balance: Hours, Overtime, and Leave
Standard Work Week & Ramadan Hours
- Standard Week: The legal maximum is 48 hours per week, typically 8 hours a day, 6 days a week (with Friday as the official rest day).
- Breaks: Any break (like a one-hour lunch) after five consecutive hours of work is unpaid and not counted as part of your 8-hour workday.
- Ramadan Hours: During the Holy Month of Ramadan, the workday is legally reduced to 36 hours per week (6 hours per day) for all employees, regardless of faith.
Summer Work Ban
To protect workers from extreme heat, Kuwait enforces a “summer work ban.” From June 1st to August 31st, all outdoor work is prohibited between 11:00 AM and 4:00 PM.
Overtime Pay
If you are asked to work extra hours, it must be compensated correctly:
- Weekday Overtime: 125% of your normal hourly rate.
- Weekly Rest Day (e.g., Friday): 150% of your normal hourly rate.
- Public Holidays: 150% of your normal hourly rate.
Your Leave Entitlements: Time Off Rights
You are legally entitled to several types of paid leave.
Annual Leave
After completing your first year of service, you are entitled to 30 days of paid annual leave. This is in addition to public holidays.
Sick Leave
If you are unwell, you are entitled to sick leave after your probation period ends, provided you have a valid medical report. The tiered payment is as follows:
- First 15 days: 100% (full pay)
- Next 10 days: 75% of pay
- Next 10 days: 50% of pay
- Next 10 days: 25% of pay
- Next 30 days: Unpaid
Maternity Leave
Female employees are entitled to 70 days of paid maternity leave. You can also take up to four additional months of unpaid leave for childcare immediately following your maternity leave.
Public Holidays
Kuwait observes several public holidays (e.g., Eid al-Fitr, Eid al-Adha, National Day). These are paid days off and do not count against your annual leave.
End-of-Service Benefits (Gratuity)
This is your “indemnity” or “final settlement,” a crucial benefit for expats. Governed by Articles 51-54, it’s a lump-sum payment you receive when you leave the company.
How to Calculate Your Gratuity
The calculation is based on your final salary and length of service:
- First 5 Years of Service: You get 15 days’ wages for each year.
- Years 6 and Onward: You get 30 days’ wages (one month) for each additional year.
- Total Cap: The total gratuity payment cannot exceed 1.5 years’ (18 months) salary.
Eligibility: Resignation vs. Termination
- If You Are Terminated (by Employer): You are entitled to your full, calculated gratuity.
- If You Resign (Your Choice):
- Less than 3 years: You are not entitled to any gratuity.
- 3 to 5 years: You get 50% (half) of your calculated gratuity.
- 5 to 10 years: You get 75% (three-quarters) of your calculated gratuity.
- 10+ years: You get 100% (full) gratuity.
Note: Using an “indemnity calculator” online can help you estimate this, but your final amount will be confirmed by your employer.
The Kafala (Sponsorship) System
As an expat, your legal right to live and work in Kuwait is tied to your employer through the Kafala (sponsorship) system. Your employer (your “sponsor”) is responsible for your visa, work permit, and residency.
2025 UPDATE: New Exit Permit Rule
This is a critical change. Starting July 1, 2025, all private sector expats must get an exit permit from their employer before leaving Kuwait (even for a vacation).
- How to Apply: You must apply via the Sahel mobile app or Ashal online portal.
- Notice: You must give at least 7 days’ notice (24 hours for emergencies).
- Employer Approval: Your employer must approve the request via their business portal.
- Disputes: If your employer denies the permit without a valid reason, you can file a complaint with PAM.
Transferring Your Sponsorship (Changing Jobs)
Changing jobs in Kuwait means transferring your sponsorship. This process generally requires a “release” or No Objection Certificate (NOC) from your current employer, as well as approval from your new, prospective employer. This is a regulated process and not always straightforward.
Workplace Safety & Dispute Resolution
What to Do if You Have a Problem
Your employer is required to provide a safe work environment. If your rights are violated (e.g., late salary, contract breach, unsafe conditions), you have a clear path for action.
- File a Complaint: Your first step is to file a complaint with the Public Authority for Manpower (PAM), which oversees all private sector labor.
- Mediation: PAM will first try to mediate the dispute and find a solution.
- Labor Court: If mediation fails, your case will be referred to the labor courts for a final, binding legal decision.
Employers who violate the law face heavy fines, compensation claims, and even license suspension.
Practical Tips for Every Expat
- Before You Sign: Get your Arabic contract professionally reviewed.
- Document Everything: Keep digital and physical copies of your contract, visa, civil ID, salary slips, and any official letters.
- Know Your PAM: The Public Authority for Manpower (PAM) is your primary resource for disputes. Know where their offices are.
- Use the Sahel App: This government app is becoming essential for many official procedures, including the new exit permit.
- Stay Updated: Laws change. Follow official Kuwaiti news and government channels to stay informed.
Disclaimer: This guide provides a general overview of the Kuwait Labor Law for informational purposes. It is not a substitute for legal advice. Always refer to your official contract and consult with PAM or a legal professional for matters specific to your situation.
