Kuwait to increase penalties for private sector firms failing Kuwaitisation targets
Pvt sector faces tougher norms as Kuwaitisation penalties and employment goals raised
Dubai: Private sector companies in Kuwait will soon face higher penalties for failing to meet Kuwaitisation targets, with fines increasing from KD100 (nearlyDh1,200) to KD300.
This significant change is part of a forthcoming report by the Public Authority for Manpower (PAM) aimed at enhancing the employment of Kuwaiti youth in the private sector.
The report reflects a strong commitment from Prime Minister Sheikh Ahmad Al Abdullah to integrate Kuwaiti talent into the private sector, complementing government employment and aligning his broader vision. The increase in fines aims to address the challenge of disguised unemployment and manage future budget deficits by controlling salary expenditures.
The study proposes raising the Kuwaitisation rate to 50 per cent in specific sectors, particularly the oil industry, and approximately 30 per cent in other sectors.
Additionally, it recommends imposing strict penalties on companies that unjustifiably terminate Kuwaiti employees, including measures such as suspending their company files.
These new policies aim to bridge the gap in job benefits between the public and private sectors, ensuring fairer salary structures.
The Public Authority for Manpower is collaborating with various stakeholders to protect the rights of Kuwaiti workers and make the private sector a more attractive employment option.
According to the latest statistics, Kuwaiti workers in the government sector numbered around 404,900 as of mid-2024, up from 397,500 at the end of 2023, while the private sector employed about 72,800 Kuwaitis by the end of June 2024.