Manama: Kuwait has set a minimum wage of 60 dinars (Dh763; $208) for workers in the private sector.
"No worker will be employed or brought to Kuwait to work in the private sector for a salary of less than 60 dinars," Mohammad Al Afassi, the Social Affairs and Labour Minister, said yesterday.
"The historic decision applies to all new government contracts, but does not affect the ones being implemented," the minister said.
However, the minister did not say whether the new rule would apply to around 700,000 domestic helpers working in Kuwait. The new law, passed in December by parliament, required the government to introduce a minimum wage for certain jobs, especially in the lower-paid categories.
The introduction of the minimum wage is part of a drive by Al Afassi to reform the labour market and give the private sector more advantages that will make it attractive to Kuwaiti nationals, who are traditionally keen on working in the public sector with generous benefits.
Kuwait, like all Gulf Cooperation Council countries, relies heavily on expatriate workers.
Expatriates make up two thirds of Kuwait's total population of 3.2 million.
Most Kuwaitis are employed by the public sector with generous benefits, while the private sector is dominated by foreign workers.
Analysts say 60 dinars is too low and much more is needed to be done to ensure justice for low-paid foreigners. Many domestic helpers, who might not be covered by the new regulation, are paid less that.
— With inputs from Reuters
