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Population
Kuwait has a population of approximately 4.5 million people (as of 2023), with only about 30% being Kuwaiti nationals. The majority of the population consists of foreign workers, mainly from India, Pakistan, Egypt, and other Asian and Arab countries.
Capital
The capital of Kuwait is Kuwait City, which serves as the country’s economic, political, and cultural hub. Kuwait City is known for its modern skyscrapers, shopping malls, and iconic landmarks like the Kuwait Towers.
Economic Strength
Kuwait is one of the wealthiest countries in the world, primarily due to its vast oil reserves. The oil and gas sector accounts for about 90% of government revenues and a significant portion of the GDP. Kuwait is working to diversify its economy with investments in infrastructure, education, and tourism, although it remains heavily dependent on oil.
Culture
Kuwaiti culture is deeply rooted in Islamic traditions and Bedouin customs. Family-oriented and guided by Islamic values, Kuwaiti society celebrates important religious holidays such as Eid al-Fitr and Eid al-Adha. Kuwait also embraces modern cosmopolitan influences, with a strong presence of Western and international cultures. Hospitality is a central part of Kuwaiti culture.
Currency
The official currency of Kuwait is the Kuwaiti Dinar (KWD), which is one of the strongest currencies in the world.
Health Insurance and Social Security System
Kuwait provides its citizens with a state-run healthcare system, offering free or heavily subsidized medical services. Foreign workers are usually required to obtain private health insurance through their employers or contribute to a state-regulated health insurance system for access to medical services. Kuwait’s social security system covers pensions, disability, and unemployment benefits for Kuwaiti citizens, but foreign workers are not eligible for these benefits.
Employer Costs
Employer costs in Kuwait include salaries, contributions to social security for Kuwaiti employees, and health insurance for foreign workers. Employers must contribute 11.5% of a Kuwaiti employee’s gross salary to social security. For foreign workers, employers are not required to contribute to pension funds but must cover health insurance and often provide housing and meals.
Salary and Bonuses
Salaries in Kuwait are high compared to international standards, especially in the public sector and the oil industry. While there is no universal minimum wage, foreign domestic workers have a minimum wage of 60 KWD per month. Bonuses are common, especially during religious holidays such as Eid al-Fitr and at the end of the year, often in the form of additional monthly salaries.
Payroll
Employers in Kuwait must provide monthly payroll statements detailing the base salary, allowances, bonuses, and deductions, including health insurance and other contributions. This ensures transparency and is required by law.
Public Holidays
Kuwait observes several public holidays, both religious and national, including:
- New Year’s Day (January 1)
- National Day (February 25)
- Liberation Day (February 26)
- Eid al-Fitr (End of Ramadan)
- Eid al-Adha (Festival of Sacrifice)
Religious holidays follow the Islamic lunar calendar and thus vary each year.
Working Hours
Standard working hours in Kuwait are 48 hours per week, typically spread over 6 days. During Ramadan, working hours for Muslim employees are reduced to 6 hours per day. Overtime must be compensated in accordance with legal requirements, often at a premium rate.
Vacation
Employees in Kuwait are entitled to 30 days of paid annual leave after one year of service. Vacation must generally be arranged in advance with the employer. In addition to this, employees are also entitled to time off during public holidays.
Sick Leave
Employees are entitled to paid sick leave in the event of illness. Workers receive 15 days of full pay, followed by 10 days at half pay. After that, they may be granted additional unpaid leave in the case of extended illness. A medical certificate is required to claim sick leave.
Termination/Severance
Termination rules in Kuwait usually require a three-month notice period for both employees and employers. In the case of involuntary termination, employees are entitled to severance pay, which is typically calculated based on the length of employment. The severance pay is usually half a month’s salary per year of service for the first five years and one month’s salary per year for each additional year.