back
Complying with minimum wage laws in Kuwait will help you steer clear of legal issues and establish a positive image for your company.
Knowledge of the minimum wage in Kuwait is essential if you want to start a new business in the country on the right foot.
Paying workers below the minimum wage can result in legal troubles with the Ministry of Social Affairs and Labor (MSAL).
More importantly, since paying workers well is crucial to maximising their productivity, the minimum wage should be a benchmark that you will use to design appropriate wages and salary structures.
Also, since salary payment is the bulk of the operating expenses of most firms, understanding what it will cost to employ needed workers is a crucial part of financial planning.
In what follows, we will consider the minimum wage in Kuwait, the average salary earned by workers in Kuwait, and all you need to know about paying workers rightly in the country:
- What is the minimum wage in Kuwait?
- What is the average salary in Kuwait?
- How to pay employees in Kuwait
[Do you want a fast, seamless, and cost-effective way to receive payments from your customers? Download the Kem app to start using our efficient POS system and payments app.]
1. What is the minimum wage in Kuwait?
Before 2018, the minimum wage in Kuwait per month was 60 KWD (Kuwaiti dinars). Now, the minimum wage is 75 KWD, equivalent to $242 at the time of writing.
As seen in the chart below, this amount is so far away from the highest and lowest minimum wages across the globe:
Source: Papaya Global
More relevant to us is how Kuwait's minimum wage compares to other countries in the Arab States region.
According to 2019 data from the International Labour Organisation,
- The minimum wage is BD300 in Bahrain, though it only applies to public sector workers. This was worth $798 in 2019 but is now worth $796 at the time of writing.
- It is JOD220 ($310.34 at the time of writing) in Jordan for nationals and JOD150 ($211.60 at the time of writing) for expatriates.
- In Oman, the minimum wage is OMR325 ($844.20 at the time of writing) though it only applies to nationals.
- The minimum wage is QAR750 ($206 at the time of writing) in Qatar and it applies to all workers
- There is no legal minimum wage in Saudi Arabia, Yemen, and the UAE
In dollar value, the legal minimum wage in Kuwait is behind Oman, Bahrain, and Jordan (for nationals) and ahead of Qatar and Jordan (for foreign workers).
Interestingly, Kuwait has one of the most inclusive minimum wage laws, covering all employees (national or migrant) working in the private sector.
Also, according to ILO, Kuwait, unlike most other countries, covers domestic workers in its minimum wage laws (except that the minimum wage that applies to them is KWD 60).
Kuwait's minimum wage per hour
The minimum wage in Kuwait is stated as a per-month figure.
However, part-time workers and daily wage workers might be interested in the minimum wage per hour.
There is currently no legal minimum wage per hour. Therefore, the only path we can take is to translate the monthly minimum wage of KWD75 ($242) to a per-hour basis.
Given that Kuwait has a 48-hour work week, this will give us KWD0.39 ($1.26) per hour.
Minimum wage in Kuwait for Indians
The Indian embassy in Kuwait publishes a minimum wage schedule for Indian workers across various job categories. That is, if you are looking to hire Indian workers, there is a minimum wage you must pay them.
In 2016, the embassy issued a new schedule to reflect an increase in the cost of living and a fall in purchasing power. According to the schedule, the lowest wage that can be paid to an Indian worker for any type of job is KWD100. This applies to car washers, domestic help, and construction labour, among others.
Below is a sample of this schedule:
Source: Embassy of India, Kuwait
For some skilled workers (especially those in healthcare), the minimum wage is as high as KWD400. For example, it is KWD450 for medical doctors and KWD420 for nurses with a bachelor's degree.
Minimum wage in Kuwait for Filipinos
Philippine workers in Kuwait also have a minimum wage of KWD150 (which increases for more specialized workers), as reported by Zawya, a news agency covering the MENA (Middle East and North Africa) region.
For domestic workers, it’s relaxed to KWD120.
(Side note: Kuwait indefinitely suspended the issuance of new visas to Filipinos in May 2023)
More countries – including Bangladesh (KWD100), Egypt (KWD 200 for diploma holders and KWD350 for degree holders), and Ethiopia – are also setting specific minimum wages for their workers in Kuwait.
Consequently, before hiring foreign workers, you must do some due diligence. Preferably, you can contact the embassy directly for accurate and up-to-date information about the minimum wage.
2. What is the average salary in Kuwait?
The minimum wage set for foreign workers by different countries shows that it might not be enough to offer KWD75 for employees in Kuwait.
Moreover, in competitive labour markets, it helps to know what other employers are paying workers if you hope to compete. Yes, KWD75 might be the minimum wage but if all other employers are offering KWD150 for the role, then you can’t offer the minimum wage except you are the only firm still recruiting for that role.
Therefore, to make this guide more valuable for you, let’s consider what the average salary is for different categories of workers in Kuwait.
Data from Salary Explorer, a platform providing salary and cost of living data, shows that the average monthly salary (the absence of personal income tax means there is no need to distinguish between gross and net pay) in Kuwait is KWD1,270. They also note that low-income earners earn an average of KWD320 while the high flyers earn an average of KWD5,640.
Other key data are provided in the chart below:
However, data from Wego, a travel blog, shows that the average salary for Kuwaitis in both the public and private sector is KWD1,493 while “non-Kuwaiti workers in either sector continue to receive a significantly lower average wage of KWD 338.”
A study by Al Shall, a business consultancy firm, reported by Times Kuwait, a news agency, puts the figures at KWD1,538 for Kuwaitis and KWD337 for foreign workers. They also note that these “figures do not include domestic workers, which will leave a significant impact on the wage rates of non-Kuwaitis, if taken into account, nor do they include the impact of employment support given for Kuwaitis working in the private sector.”
For cross-country comparisons, CEOWorld, a business magazine published the average monthly salaries for 105 countries.
According to them, the average salary in Kuwait is $1854.45, which puts it at 4th in the Arab world (and in the Gulf Cooperation Council) and 26th in the world.
3. How to pay employees in Kuwait
When paying workers in Kuwait, there are some payment guidelines that you must also be aware of.
That is, it is not enough to pay the minimum salary, you must also be familiar with other important legal requirements.
The Kuwait Labour Law prescribes that salaried workers must receive payment at least once per month while other workers must have wages paid at least once every 2 weeks.
Also, the maximum grace period for payment is 7 days. Refusal to pay workers 7 days after the due date agreed with them in their employment contracts can cause legal troubles.
Other rules regarding the payment of workers include:
- Every worker should have a detailed employment contract
- Employment contracts must state what wages are to be paid in the local currency
- Payment of wages must be made in the local currency
- Wages must be paid as direct deposits into the local bank accounts of workers
- Receipts of wage payments must be submitted to the MSAL
- Employers must pay 10% of Kuwaitis’ wages in the compulsory pension scheme
If your workers are working overtime, there are also guidelines you must follow:
- Overtime hours are limited to 2 hours a day and 3 days a week
- Overtime pay is 125% of basic pay if the overtime hours fall on a normal working day
- Overtime pay is 150% of basic pay if the hours fall on a rest day
- Overtime pay is 200% of basic pay if the hours fall on a public holiday
As said above, Kuwait has a 48-hour work week (except during Ramadan when there are 36 working hours), which translates to 8 hours per day. However, workers must not be active for more than 5 hours at a stretch; there should be a period of rest within the work day.
You can find other information regarding leave and termination in the Labour Law quoted above.
Experiencing seamless payments in Kuwait
If you are a business owner or getting ready to start your business, you need a trustworthy payment system that is also fast, cost-effective, and seamless.
Before you can pay your workers at the right time, you must receive timely payments from your workers.
At Kem, we provide you with an instant payment platform that allows you to quickly collect payments from your customers through QR codes.
If you are an in-store business, your customers can scan your printed QR code on the Kem app for instant payments. And if your customers want to pay online, you can send them your digital QR code on the app.
The use of QR codes will save you from the costs of unsuccessful card transactions, help you process payments instantly, and offer convenience and ease to your customers (which makes it likely that they will choose your business).
Kem protects the data of users through its encryption system (available for public WiFi, private WiFI, 3G, 4G, and 5G) and bank-level fraud detection infrastructure and safety standards. Also, Kem is PCI Data Security Standard (PCI-DSS) Level 1 compliant. You and your customers have nothing to worry about.
[Do you want to improve your revenue collection so you can pay your workers in a timely fashion? Download the Kem app to enjoy the benefits of instant and contactless payments through QR codes.]
Takeaways
- The minimum wage for private sector workers in Kuwait is KWD75 ($242 at the time of writing).
- Many countries with migrant workers in the UAE have specific minimum wage guidelines for employers looking to employ their citizens.
- While the minimum wage in Kuwait is KWD75, the average monthly salary is above KWD1,000 for Kuwaitis and more than KWD300 for expat workers.
- Employers must pay competitive wages and do so in compliance with the labour law.
