PAM Mandates Salary Transfer Proof For Workforce Expansion

In a recent administrative move, the Acting Director General of the Public Authority for Manpower (PAM), Marzouq Al-Otaibi, has issued a circular requiring companies to submit proof of salary transfers to local banks when applying for an increase in workforce quota beyond the approved needs assessment.

This directive is part of Kuwait's broader effort to reinforce compliance with labor laws, particularly those mandating timely salary payments, and to protect workers’ rights in the private sector.

Compliance with Labor Law and Wage Protection

According to sources close to the Authority, this measure is designed to enhance labor market regulation and minimize delays in the disbursement of wages and other entitlements. It aligns with the stipulations of Kuwait Labor Law, which obligates private companies to deposit employee salaries into local bank accounts within the first week of each month.

By making salary transfer proof a requirement for expanding labor capacity, the government seeks to ensure that employers maintain financial transparency and uphold their responsibilities toward workers listed on company records.

Reducing Worker Complaints and Strengthening Oversight

This move comes as part of an ongoing strategy to reduce the growing number of worker complaints related to delayed or unpaid wages. With the new rule in place, PAM aims to prevent companies from hiring additional staff without fulfilling existing employee obligations.

Employers who do not comply with the updated requirement may face delays in the approval of new work permits or labor quota increases. The government’s stance signals a zero-tolerance policy toward violations of wage payment regulations.

Economic Impact and Legal Obligations

By tying labor quota expansion to salary compliance, the Public Authority for Manpower is not only safeguarding worker rights but also promoting economic accountability among private sector businesses. Employers are reminded that maintaining accurate payroll records and adhering to wage transfer laws are not optional but legally binding.

Conclusion

The new administrative directive reflects Kuwait’s commitment to fostering a balanced and fair labor environment. Business owners aiming to scale their operations must now demonstrate financial integrity through documented salary bank transfers, reinforcing a culture of legal compliance and worker protection in the country.