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Sunday, February 23, 2025
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Leave pay sparks financial scrutiny

publish time

23/02/2025

publish time

23/02/2025

Leave pay sparks financial scrutiny

KUWAIT CITY, Feb 23: Nearly three years since the issuance of Decree-Law No. 81/2022, which amended Article 41 of Decree-Law No. 15/1979 regarding the civil service, the issue of cash allowances for leave balances has resurfaced, reports Al-Seyassah daily. This happened after the Civil Service Commission (CSC) sent a letter to the Ministry of Finance to request a study on the future financial impact and expected budget reduction resulting from the amendments approved by the Civil Service Council at its meeting on October 24, 2024, as well as for the study to also determine the expected budget reduction from each amendment separately.

The decisions made by the Civil Service Council during the aforementioned meeting, for which the CSC requested a statement of their financial impact, included three main changes:
1. Reducing the cash allowance due to employees upon the end of their service from 180 days to a maximum equivalent to the unused vacation balance for two years.
2. Granting a mandatory periodic leave of no less than 15 days per year. If the employee does not use their annual vacation voluntarily, it will be deducted from their balance.
3. Reducing the maximum amount of periodic leave that can be carried over from five years to two years, with any excess being forfeited. In the letter, the Civil Service Commission (CSC) also requested that the ministry study the financial impact of the decision to cancel the disbursement of the cash allowance during service, as stipulated by Decree No. 81/2022. CSC clarified in its letter to the Ministry of Finance that this request is based on a letter from the General Secretariat of the Council of Ministers, which included a decision by the Legal Affairs Committee to revisit the issue of amending periodic leaves and the cash allowance.

The committee instructed CSC to coordinate with both the Ministry of Finance and the Fatwa and Legislation Department to prepare a comprehensive project in light of the committee’s observations. This project will then be submitted to the Ministry of Finance for the preparation of an integrated study on the financial impact resulting from the amendment.