03/11/2024
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03/11/2024
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KUWAIT CITY, Nov 3: Kuwait is reportedly considering significant amendments to its labor policies, particularly those affecting expatriate workers aged 60 and above with high school diplomas or less. This potential policy shift has been a topic of discussion for months, with Arab Times and Al-Seyassah reporting on similar plans as early as July 2, 2024. The probable reconsideration of Decision No. 34/2022, issued by the Public Authority for Manpower (PAM), comes three years after its implementation.
The current policy imposes a substantial financial burden of approximately KD 1,000 annually for residency renewal or transfer, which has led to an exodus of skilled workers and ongoing labor market challenges. Labor market observers note that the political leadership, particularly First Deputy Prime Minister and Minister of Defense and Interior Sheikh Fahad Yousef Saud Al-Sabah, is committed to revitalizing the market.
Recent “corrective measures” include:
Decision No. 8/2024, allowing government contract workers to work in other sectors under specific conditions.
Removal of the university degree requirement for transfers from government to private sector.
Experts have long warned about the negative economic consequences of the “60-year” decision, which failed to consider the valuable experience of older workers. They stress the need for a broader, more comprehensive vision that serves both small and large economic entities.
As discussions continue, observers urge officials to address these policies by either radically re-evaluating or canceling them altogether. The potential reforms could significantly impact Kuwait’s economic landscape and its reliance on expatriate labor, addressing ongoing challenges in sectors that have been particularly affected by the current policies.
