Kuwait Introduces Work Permit Change Fee From June 1st, 2024

Big changes are coming to work permits in Kuwait.  Starting June 1st, 2024, it will be easier for companies to hire workers from other countries.

This should help to address the lack of workers in Kuwait and bring down labor costs.

Hiring Made Easier for Companies:

Goodbye Quotas! Previously, companies had to fill a certain number of jobs with local workers before hiring from abroad. This is scrapped! Now, companies can hire as many foreign workers as their business license allows. This should make it much faster and easier to find the workers they need.

First-Time Work Permit Fee: A new fee of 150 Kuwaiti dinars (KD) will be added for obtaining a brand new work permit.

Changing Jobs? New Rules Apply:

Thinking of a Job Switch? Foreign workers who want to switch jobs within 3 years of arriving in Kuwait will face a new fee of 300 KD. Additionally, their current employer must give the thumbs-up for the move. This aims to discourage workers from simply jumping between jobs and promote stability.

Benefits for Businesses and the Economy:

Lower Labor Costs? The government hopes these changes will make it cheaper for companies to hire workers. This could lead to lower prices for goods and services in sectors like construction, benefiting everyone in Kuwait.

Focus on Business Growth: By simplifying the hiring process, companies can spend less time on paperwork and more time growing their business.

Keeping Things Fair: A Crackdown on Labor Law Violations

The Public Authority for Manpower (PAM) is stepping up enforcement of labor laws to protect workers’ rights. Here’s what they’re focusing on:

• Contract Compliance: Companies must follow the terms and conditions agreed upon in worker contracts. This ensures fair treatment for all.
• Matching Work Permits & Jobs: Workers must be assigned tasks that match the job description on their work permit. This prevents companies from exploiting workers.
• No Double-Dipping: Companies cannot hire workers who are already registered under another employer’s file. This helps prevent unfair competition and protects workers already in the system.

PAM Champions Kuwaiti Job Seekers:

PAM isn’t just focused on foreign workers. They’re also working hard to connect Kuwaiti citizens with job opportunities in the private sector. Here’s a recent example:

• Jobs in Healthcare: PAM partnered with other government agencies to connect 137 job seekers with openings related to government health contracts. This initiative helps Kuwaiti citizens find good jobs while supporting the healthcare sector.

Overall Impact:

These changes should benefit both businesses and workers in Kuwait. Companies can find the workforce they need to thrive, while workers have more opportunities to secure good jobs. Additionally, stricter enforcement of labor laws protects everyone and promotes a fairer work environment.