Kuwait’s Civil Service Commission Requests Financial Study on Policy Amendments
Kuwait’s Civil Service Commission has formally asked the Ministry of Finance to conduct a comprehensive financial study assessing the future budgetary impact of recent amendments approved by the Civil Service Council. These amendments, previously discussed in a council meeting, focus on revising employees’ cash allowances and leave entitlements to reduce the state’s financial liabilities.
The study aims to evaluate the expected reduction in national budget expenditures resulting from each amendment separately. The key modifications under review include:
1. Reduction in Cash Allowance Upon Service Termination
- Previously, employees could receive a cash allowance for up to 180 days of unused leave upon termination.
- Under the new amendment, this will be capped at a maximum of two years’ leave balance.
- The financial study will assess the long-term savings generated by this change.
2. Mandatory Annual Leave Requirement
- Employees must now take at least 15 days of leave per year.
- Any unused leave from this mandatory period will be automatically deducted from their balance.
- The study will examine the financial impact of this policy on leave-related expenses.
3. Reduction in Accruable Leave Balance
- The maximum leave accumulation has been reduced from five years to two years.
- Any excess leave beyond two years will be forfeited.
- The financial assessment will determine the cost savings from this revision.
4. Elimination of Cash Allowance for Unused Leave During Service
- The provision allowing employees to receive a cash allowance for accumulated leave while in service is being removed.
- Previously, this payment was granted once every ten years, but the new amendment eliminates the entitlement entirely.
- The study will estimate the long-term financial effects of this cancellation.
Financial Study to Guide Final Decision
In an official letter dated February 16, the Civil Service Bureau clarified that this financial study is a necessary step before the amendments are resubmitted to the Civil Service Council for final approval. The findings will directly influence the final structure of the policies, ensuring alignment with Kuwait’s financial plans and budget constraints.
The Bureau emphasized that the study is essential for drafting the final decree on periodic leave and cash allowances. The Civil Service Council will review the financial assessment before formally enacting the new regulations.
Collaboration with Finance and Legal Authorities
The Bureau’s letter also referenced a directive from the General Secretariat of the Council of Ministers, instructing the Legal Affairs Committee to return the proposed amendments for further review. The Civil Service Bureau, Ministry of Finance, and the Fatwa and Legislation Department will now collaborate to draft a comprehensive legislative proposal incorporating the committee’s recommendations.
These amendments were initially approved in Civil Service Council Meeting No. 12 (2024) on October 24, 2024. However, before full implementation, the Ministry of Finance’s financial impact study will determine the precise economic benefits of these changes.
This initiative represents a significant shift in Kuwait’s public sector employment policies, as the government seeks to enhance fiscal efficiency while maintaining fair labor practices.
