Kuwait Labour Law chapter
Kuwait Labour Law Wages: Articles 55–63
What counts as wages, when they are paid, deductions and minimum pay.
Pay rules decide the size of almost every entitlement, so mistakes here multiply. This section covers what counts as the wage, when and how it must be paid, deductions, and the basis for calculating end-of-service and leave pay.
The points that matter most:
- The wage includes regular allowances, not only basic salary (Article 55).
- Monthly wages must be paid at least monthly and never more than seven days after the due date (Article 56).
- Employers with five or more workers pay through local bank accounts (Article 57).
- Deductions for loans to the employer are capped at 10% of the wage, and all debts together at 25% (Article 59).
- Entitlements use the last wage received (Article 62).
If your end-of-service or leave formulas use basic salary only, they are likely underpaying. Our team can audit your payroll against these articles.
Articles 55–63
- What counts as pay (Art. 55)For end-of-service, use the last wage and applicable recurring components, not basic pay and fixed allowances alone.
- Pay dates (Art. 56)Monthly-paid employees must be paid at least monthly; payment must not be delayed more than 7 days after its due date.
- Salaries paid to bank accounts (Art. 57)Employers with 5 or more workers must transfer wages to employees' bank accounts or local financial institutions. The Cabinet may exempt certain activities from transferring expatriate workers' wages to banks.
- Changing pay basis (Art. 58)A monthly-paid employee cannot be moved to another wage category without written consent.
- Loan deductions limit (Art. 59)Deductions are capped at 10% for loans and 25% overall.
- No forced purchases (Art. 60)Employees cannot be required to buy from particular shops.
- Pay during forced closure (Art. 61)Wages continue during a closure.
- Pay basis for entitlements (Art. 62)For EOS, use the last wage and include applicable recurring wage components, rather than invariably using basic salary alone.
- Minimum wage (Art. 63)The minimum wage is reviewed every 5 years (currently KD 75, Order 14/2017).
This text follows PAM's January 2025 consolidated English edition; this local copy was not independently checked and is not legal advice.
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