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Kuwait: Kuwait Implements Revised Work Permit System to Address Labor Market Imbalances. The Kuwaiti government, aiming at labor shortages and high labor costs, has announced a revised work permit system. The new regulations, approved by the Public Authority for Manpower (PAM) board. It is under the leadership of Deputy Prime Minister Sheikh Fahad Yousef Al-Sabah, will come into effect on June 1, 2024.

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Key Changes to the Work Permit System:

• Streamlined Recruitment: Employers will have greater flexibility in hiring migrant workers directly from abroad. This eliminates the previous quota system that mandated a 75% local recruitment ratio. This change is expected to alleviate labor shortages and expedite the hiring process.
• Introduction of Fees: A new fee structure promotes employment stability and discourages visa-trading practices. A fee of 150 Kuwaiti dinars (KD) will apply for issuing new work permits. Also transferring a migrant worker to another company within the first three years will incur a 300 KD fee. It subject to employer approval.
• Enhanced Compliance Measures: PAM will intensify inspections to ensure companies adhere to labor laws and regulations. Particularly regarding worker rights and assigned tasks as per issued work permits. Non-compliance can result in penalties including imprisonment and fines.
• Focus on Kuwaiti Employment: PAM, in collaboration with other government entities, successfully facilitated 137 job placements in the private sector for Kuwaiti citizens, specifically within healthcare contracts. This initiative aligns with Kuwait’s nationalization efforts for government contracts.

These revisions aim to establish a more balanced and efficient labor market in Kuwait. The streamlined recruitment process should address labor shortages, while the new fee structure discourages practices that disrupt market stability. Additionally, the focus on compliance ensures worker rights are protected and Kuwaiti citizens have increased opportunities for private sector employment, reported Arab Times.