As an employer in Kuwait, you need to take into account the offerings you will make to your new hires. A crucial part of this is the Kuwait compensation and benefits. You need to comply with the Kuwait compensation laws so you can avoid issues with the authorities.
Furthermore, you need to provide a certain amount and statutory benefits to your potential employees so they can accept a position at your business.
Nevertheless, it is sometimes difficult to think about the compensation and benefits when you are expanding. You need to focus on establishing your entity, hiring new employees, planning your expansion, and more.
Therefore, you need to know how to design a great plan so you can communicate your directors leadership news to your board of directors.
For this reason, you have to partner with Connect Resources. We can ensure total compliance with united legislation so you do not have to worry about it. Request a proposal from our team so we can hire your employees by providing a great offering, which includes a well-structured benefits management plan.
Employee Benefits in Kuwait
Employee benefits are a great part of your job offering. These are perks or advantages that you offer to your employees as part of their job. Some benefits may be financial, like health insurance, while others not, such as paid time off, or flexible working hours.
Oftentimes, the employer designs a benefits management plan that is suited to the labour market to make it competitive. During the interview, the employer has to discuss this with the employee since it can become a tool to attract the best talent.
If you are planning your expansion to Kuwait, you need to consider how to design a comprehensive benefits package, since it can offer you the following advantages:
- Motivate employees to boost their morale so they can give their best performance.
- It helps to reduce absenteeism since employees are eager to work to receive their benefits
- It decreases the turnover rate, so your employees can stay with you for the long term.
All of these factors make your company more productive and successful.
Compensation Laws in Kuwait
When you are planning to hire employees in Kuwait, you need to learn all about the Labour Law, Kuwait employee benefits, compensation, minimum wage, and more.
Currently, the minimum wage is 75 Kuwaiti dinars per month. The last modification was in 2018 and played a crucial role in establishing the new minimum wage.
The minimum wage in Kuwait equates to $250 a month, but many employees earn above this amount, making more than $40.000 per year.
Another important aspect of the Kuwait compensation law is that companies are required to pay bonuses, but this is up to the company’s decision.
Guaranteed Benefits in Kuwait
As soon as you are planning your expansion you need to start developing your benefits management plan. This is because it may take some time to create a great offering for your employees.
Here we have the guaranteed benefits you should offer to your employees to stay compliant:
- Days off during Kuwait’s nine public holidays
- 30 days of annual leave (for employees that have worked for nine months for your company)
- Muslim employees that have not performed Al-Hajj are entitled to 21-days off (for those that have worked for two years for your company)
- 30 days of paid maternity leave before the due date and 40 days after the child has been born. Female employees can also take 100 days of unpaid leave after maternity leave. But, it is required to provide a medical certificate.
- Employees that have been working for the company for at least one month are entitled to paid sick leave of 15 days at full pay, ten days at ¾ pay, ten days at ½ pay, ten days at ¼ pay, and 30 days unpaid.
- All employees have to receive government medical insurance.
- In Kuwait, there is no statutory paternity leave, so the company decides whether to offer this benefit or not.
- Employees also are entitled to bereavement leave of 3 days for the death of a family member
- A Muslim female employee is entitled to bereavement leave in the case of the death of her husband. It will consist of a fully paid leave of 4 months and ten days. Non-muslim female employees are entitled to 21 days.
Supplemental Benefits in Kuwait
If you want to become a business internationally lead, you need to provide also some supplemental benefits. It is advisable to consider your current budget so you can determine which ones you can add without increasing the cost of your benefits.
Make sure to consider statutory and supplemental benefits, so you can design a great management plan that may be attractive to your potential employees. Also, it is worth doing market research so you can know which benefits your competition is offering. This will help you become an attractive employer.
Some of the supplemental benefits you may consider are the following:
- Education allowance
- Free air ticket at the end of the contract (flight allowances)
- Housing allowance
- Wellness programs such as gym memberships, health screenings, and others.
- Private medical insurance
- Car allowance
- Transportation allowance
- Phone allowance
Restrictions for Benefits and Compensation
Before starting to hire employees, you must know that you need to have an established subsidiary in Kuwait. Otherwise, you will not be able to operate legally in the country, and thus you cannot design a benefits plan.
By considering longevity these factors, you need to think if you prefer to go through the process of incorporating a company, which may take some days, weeks, or even months, or if you prefer to have a faster market entry.
If you want to start your operations in Kuwait as soon as possible, then the best is to choose our EOR solution. You can use our local entity and we can hire employees, pay them, and manage their benefits on your behalf.
We will be responsible instead of you, so you can focus on growing your company and expanding throughout Kuwait.
Why Choose Us
Connect Resources is an internationally lead source of services to businesses looking to expand to the Middle East. Our team can help you in the entire process of hiring employees, so you can find the best talent based on the leadership news careers.
From knowing how to deal with corporate social responsibility to designing a benefits plan that includes the best statutory and supplemental benefits for your employees, we guarantee the best service. Contact us now to receive a tailored solution exclusive to companies we partner with.