KUWAIT CITY, Feb 21: Kuwait's Civil Service Commission has formally requested the Ministry of Finance to conduct a comprehensive financial study to assess the future budgetary impact of recent amendments approved by the Civil Service Council. These amendments, which were discussed in a previous council meeting, focus on changes to employees' cash allowances and leave entitlements, aiming to reduce financial liabilities for the state.
The request emphasizes the need to evaluate the expected reduction in the national budget resulting from each amendment separately. The study will help determine the financial impact of the following key modifications:
1. Reduction of Cash Allowance Upon Service Termination
- Previously, employees were entitled to a cash allowance for up to 180 days of unused leave upon the termination of their service.
- Under the new amendment, this allowance will now be capped at a maximum of two years' leave balance instead.
- The study will assess how much this adjustment will save the government over time.
2. Mandatory Annual Leave Implementation
- A new rule mandates that employees must take at least 15 days of periodic leave per year.
- If an employee does not use this leave, it will be automatically deducted from their balance.
- The financial study will evaluate how this change will impact leave-related expenses.
3. Reduction of Permissible Leave Balance
- Employees were previously allowed to accumulate up to five years of unused periodic leave.
- This has now been reduced to two years, and any excess leave will be forfeited.
- The financial analysis will determine the cost savings of this measure.
4. Cancellation of Cash Allowance for Unused Leave During Service
- The policy allowing employees to receive a cash allowance for accumulated leave during service is being eliminated.
- Currently, such payments are only made once every 10 years, but this amendment completely removes the entitlement.
- The study will estimate the long-term financial impact of this cancellation.
Financial Study to Guide Final Decision
In an official letter dated February 16, the Civil Service Bureau clarified that this financial study is a preliminary step before the amendments are formally resubmitted to the Civil Service Council for final approval. The findings of the study will directly influence the scope and specifics of the amendments, ensuring that any modifications align with Kuwait’s financial planning and budget constraints.
The Bureau emphasized that the study is a necessary prerequisite for drafting the final decree governing periodic leave and cash allowances. The Civil Service Council will review the financial assessment before formally enacting the new policies.
Coordination with Ministry of Finance and Legal Authorities
The Bureau’s letter also referenced a directive from the General Secretariat of the Council of Ministers, which instructed the Legal Affairs Committee to return the proposed amendments for further review. The Civil Service Bureau, Ministry of Finance, and the Fatwa and Legislation Department will now collaborate to develop a comprehensive legislative proposal that incorporates the committee’s recommendations.
The amendments were previously discussed in Civil Service Council Meeting No. 12 (2024), held on October 24, 2024, where the council approved the changes. However, before full implementation, the Ministry of Finance’s financial impact study will determine the precise economic benefits these modifications will bring.
This development marks a significant shift in Kuwait’s public sector employment policies, with the government aiming to enhance fiscal efficiency while ensuring fair labor practices.
