
Can Your Salary Be Reduced In Kuwait? A Guide For Private Sector Workers
Salary Increase – Employee's Right
Salary increments are not mandatory by law. Employers may increase salaries at their discretion, based on:
Performance evaluations
Company policy
Market standards
Collective labor agreements, if any (usually for larger companies or unions), may contain terms about periodic raises.
Salary Decrease – Strictly Regulated
An employer cannot reduce an employee's salary without consent.
Article 28 of the labor law states:
'It is not permitted to reduce the wage agreed upon in the employment contract unless with the written consent of the employee.'
Any unilateral salary cut without the employee's approval is considered illegal.
Employers may not force or coerce workers into accepting salary reductions. Doing so can be challenged legally.
Important Notes:
If your salary is stated in a written contract, it cannot be reduced, even if you verbally agree later, unless a new contract is signed.
End-of-service benefits and indemnities are calculated based on your last full salary, not the reduced one (if unlawfully reduced).
The Public Authority for Manpower (PAM) handles such complaints and labor disputes in Kuwait.
What You Can Do If Your Salary Is Cut Illegally:
- File a complaint at the Labor Relations Department in your governorate.
- You can also submit a case to the Labor Court if the issue is not resolved through mediation.
Hiring Policy – Key Points
Employment Contract: Must be written in Arabic (can include another language, but Arabic prevails).
Should specify:
Job title and responsibilities
Salary and benefits
Working hours (max 8 hours/day or 48 hours/week)
Duration of contract (limited or unlimited)
Residency & Work Permit
For expats, employers must sponsor the employee and provide:
Iqama (residency visa)
Work permit
The employee cannot legally work for another company without a transfer of sponsorship.
Firing / Termination Policy – Explained
Termination by Employer
Employers can terminate an employee, but must follow these rules:
1. With Just Cause (Article 41):
- No notice or indemnity is required to pay if the employee:
Commits a serious violation (e.g. theft, assault, repeated absenteeism without valid reason, breach of trust, Conflict of interest, Disclosure risk [trade secrets, customer data etc])
- Fails to meet contractual obligations despite warnings
- Is found guilty of gross misconduct
2. Without Cause
Notice period must be given:
3 months for monthly-paid workers
1 month for others
Termination indemnity (end-of-service) must be paid
All accumulated leave, benefits, and pending salaries must be settled
Unlawful Termination
If termination is proven unjustified, the employee can:
- File a labor complaint
- Seek compensation for arbitrary dismissal
Termination by Employee
Employees can resign with:
Same notice period (3 months)
End-of-service benefit eligibility depends on years of service:
- Less than 3 years: 50% indemnity
- 3–5 years: 75%
- Over 5 years: 100%
Probation Period
Up to 100 days

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Arab Times
a day ago
- Arab Times
Kuwait Is Replacing Expats With Kuwaitis — Here's What You Need To Know
KUWAIT CITY, July 22: Acting Director of the Public Relations and Media Department at the Public Authority for Manpower (PAM) Mohammad Al- Muzaini confirmed that the authority continues to Kuwaitize jobs under government contracts. In a press statement, Al-Muzaini disclosed that PAM is currently coordinating with the ministries to Kuwaitize contracts in public entities such as the ministries of Electricity, Water Public Works and Health. He affirmed the completion of the first phase with the Ministry of Health, while awareness programs and interviews have started with the Ministry of Public Works. He stated that applications are being sorted and the authority is working in line with the national strategy to achieve balance in the labor market. He explained that the government contract Kuwaitization program aims to encourage Kuwaiti youths to work in the private sector, away from total reliance on government employment. He said the authority applies national labor quotas to companies and holds job fairs in partnership with the Union of Banks, banks and telecommunication companies. He added the authority has also started Kuwaitizing the health and hotel sectors to provide more job opportunities for Kuwaitis. He said some companies have exceeded the specified quotas and employed up to 40 percent of Kuwaitis without being obligated to do so. 'This is due to the success of the qualification and training programs of the authority, which contribute to the efforts to enKuwait Is Replacing Expats With Kuwaitis — Here's What You Need To Knowcourage qualified nationals to work in the private sector,' he elaborated.


Arab Times
2 days ago
- Arab Times
Delayed and Unpaid Salaries? Kuwait's Authorities Now Watching in Real-Time
KUWAIT CITY, July 21: In a major step towards labour transparency and digital reform, Kuwait's Public Authority for Manpower (PAM) has rolled out the second phase of its smart oversight system, a move aimed at stamping out salary delays for thousands of government contract workers. The new system, part of the 'Ashal Platform', now allows real-time electronic monitoring of wage disbursements for workers employed on government and oil sector contracts. According to well-informed sources, the platform enables contracting agencies to track salary payments, verify workers' legal status, and maintain detailed records of contracts and labour data. This comes amid rising concern over late or unpaid wages among outsourced workers, a problem the government is under increasing pressure to address. The upgraded platform, officials say, is in line with Cabinet directives calling for tighter scrutiny of private firms contracted by the government. Real-Time Oversight and Transparency Described by insiders as a "game-changer," the portal offers an interactive dashboard providing up-to-the-minute reports. Government bodies can now flag violations, monitor contractor compliance with Kuwait's Labour Law, and respond swiftly to any irregularities. The move is seen as part of Kuwait's broader push toward digital transformation and institutional integration, particularly within the labour sector. Officials hope the new system will boost accountability and ensure workers receive their wages on time — a recurring issue on many state-run projects. Supporting National Projects The platform will also support the hiring and management of skilled labour for ongoing infrastructure and oil sector projects, helping agencies better align hiring practices with contract timelines. Officials added that the system's impact will be especially significant in sectors requiring specialist expertise, allowing smoother operations and timely project completion. The Portal Offers Seven Key Services: Registration of government contracts Subcontract registration Contract extensions Contract cancellations Data editing and updates Record tracking and monitoring 'Notify Me' alerts for compliance updates and violations The platform's smart design ensures that agencies are not only alerted to breaches of employment law but are also empowered to act before issues spiral into crises. Kuwait's PAM says the system is designed to serve the public interest, provide oversight tools for government institutions, and promote fairness and transparency in the labour market.


Arab Times
3 days ago
- Arab Times
Employer Delaying Your Exit Permit? File A Complaint Now
KUWAIT CITY, July 20: Under Circular No. 2/2025 issued recently by First Deputy Prime Minister and Minister of Interior Sheikh Fahad Al-Yousuf requiring expatriate workers in the private sector to obtain exit permits from their registered employers before leaving the country (effective from the beginning of this month), more than 100,000 exit permits have been issued to private sector expatriate workers since the implementation of the decision. Sources said the exit permits are processed through the automated systems of PAM, Ashal platform, and Sahel app, indicating the total number of issued permits is expected to double in the coming days as the travel season gains momentum. Sources disclosed that in order to streamline the process and ensure faster completion of travel procedures, the authority completed an automated link with the Ports Directorate General at the Ministry of Interior, thereby ensuring the immediate sharing of exit permit data. Sources added PAM recommends that workers print a hard copy of the permit before traveling, in case it is requested by the airlines. Sources also affirmed that only a small number of complaints regarding permit issuance have been received so far -- mostly concerning employer delays or refusal, which were promptly addressed and resolved. Sources clarified that in cases where an employer is unreasonably withholding or delaying approval, the affected worker is advised to visit the Labor Relations Unit corresponding to their company's file to lodge a formal complaint, under legal procedures. They reiterated that approval from the employer remains a requirement for the permit to be issued. Sources also quoted PAM as saying there is no limit to the number of exit permits that can be issued annually per worker, as long as the employer approves, adding that the system remains open and unrestricted in this regard. Sources explained that the time needed to obtain a permit ( especially in emergencies) depends primarily on the speed of employer approval. 'Therefore, workers are advised to submit their requests well in advance of their travel dates and to coordinate directly with their employers in urgent situations to expedite the process,' sources elaborated. Sources pointed out that workers can either print the approved permit or present it through the Sahel Individuals app to port authorities. They said the Sahel Individuals app enables workers to submit electronic exit permit requests, while the Sahel Business app allows employers to review and approve these requests quickly and conveniently.