Kuwait implements fee for work permit change starting June 1

To tackle high labor wages and shortages, a meeting chaired by Deputy Prime Minister, Minister of Defense, and Acting Minister of Interior Sheikh Fahad Yousef Al-Sabah saw the Board of Directors of the Public Authority for Manpower (PAM) approve amendments to the work permit granting mechanism, transfer of expatriates, and imposition of additional fees. This was reported by Al-Seyassah daily.

The unanimous decision by PAM’s Board of Directors amends the previous quota system for work permits. Employers can now bring in migrant workers from abroad as needed for their licenses, rather than adhering to a fixed 25% overseas recruitment and 75% local recruitment quota. This move aims to reduce high wages due to labor shortages and enhance the business environment. Effective from June 1, 2024, the decision replaces the previous requirement for business owners to obtain specific permits from abroad and recruit locally, which inflated labor wages and burdened citizens.

The new decision introduces an additional fee of KD 150 for issuing a work permit for the first time to promote employment stability. It also imposes a KD 300 fee for transferring migrant workers between companies if they have been in the country for less than three years, with employer approval required for the transfer. The decision targets to curb visa trading, facilitate commercial activities for employers, and develop the business environment. It aims to reduce labor costs, contributing to lower costs in sectors like construction and contracting.

In another initiative, the Public Authority for Manpower has launched a comprehensive program for regular inspections of institutions and facilities to ensure compliance with labor laws and regulations. Additionally, the Authority has started a campaign urging employers to adhere to labor laws, emphasizing penalties, including imprisonment and fines, for violations. Furthermore, the Authority facilitated 137 job opportunities for citizens in the private sector through collaborations with the Ministry of Health and the Public Authority for Youth. This aligns with Kuwait’s regulations for the nationalization of government contracts and the promotion of employment opportunities for Kuwaiti citizens.

Add a Comment

Your email address will not be published. Required fields are marked *