Kuwait Revokes Labor Fees For Expats Over 60

01 December 2024 Kuwait
Kuwait Revises Labor Policies for Expatriates Aged 60 and Above
Kuwait has significantly revised its labor policies concerning expatriate workers aged 60 and above without university degrees. Acting Prime Minister Sheikh Fahad Yousef Saud Al-Sabah, also serving as Minister of Defense and Minister of Interior, has canceled a contentious policy that required this demographic to pay high fees and purchase comprehensive health insurance to renew their work permits.

Details of the Policy Change

The now-canceled policy was introduced under Public Authority for Manpower’s (PAM) decision No. 294/2023. It mandated workers in this category to pay an annual fee of 250 Kuwaiti dinars (KD) and secure an irrevocable health insurance policy. In total, these requirements could cost up to KD 900 annually.

  • Renew work permits without additional fees.
  • Transfer work permits to another employer without university degree restrictions.

Amendments to SME Sector Regulations

The minister also introduced significant amendments to Article 14 of ministerial decision No. 9/2016, impacting workers in the SME sector:

  • Workers can now transfer to another SME company within the same sector after one year of the work permit's issuance with employer approval.
  • Transfers within the same sector and employer’s file are allowed without adhering to the one-year limit, subject to a KD 300 fee for early transfers.

Changes for Government Contract and Distinguished List Sectors

Further adjustments were made to Article 1 of ministerial decision No. 57/A/2016. These changes include:

  • Allowing workers hired under government contracts to transfer to jobs outside the sector.
  • Permitting employees listed under the “distinguished lists” category to transfer to other sectors.

Implementation Timeline

These decisions will take effect from the date of their publication in Kuwait’s official gazette, marking an immediate shift in the labor landscape.

Impact of the New Policies

This overhaul demonstrates Kuwait’s commitment to creating a fairer labor environment for expatriates while fostering flexibility in employment for businesses in various sectors.

Kuwait Revokes Labor Fees For Expats Over 60
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