Private Firms in Kuwait to Face Increased Penalties for Not Meeting Kuwaitisation Targets

Private sector companies in Kuwait will soon face increased penalties for not meeting Kuwaitisation targets, with fines set to rise from KD100 (approximately Dh1,200) to KD300.

This change is part of an upcoming report by the Public Authority for Manpower (PAM), which aims to boost the employment of Kuwaiti youth in the private sector.

The report highlights Prime Minister Sheikh Ahmad Al Abdullah’s dedication to integrating Kuwaiti talent into the private sector, aligning with his broader vision and complementing government employment initiatives.

The heightened fines are intended to address issues of disguised unemployment and manage future budget deficits by regulating salary expenditures.

The report suggests raising the Kuwaitisation rate to 50 per cent in certain sectors, notably the oil industry, and about 30 per cent in other areas.

It also proposes strict penalties for companies that unjustifiably terminate Kuwaiti employees, including measures such as suspending their company files.

These new policies aim to narrow the gap in job benefits between the public and private sectors, ensuring fairer salary structures. PAM is working with various stakeholders to protect the rights of Kuwaiti workers and enhance the appeal of private sector employment.

Recent statistics show that as of mid-2024, the number of Kuwaiti workers in the government sector was approximately 404,900, up from 397,500 at the end of 2023, while the private sector employed around 72,800 Kuwaitis by the end of June 2024.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.