Kuwait Introduces Major Changes In Work Permit System

The Public Authority for Manpower (PAM) in Kuwait has introduced major changes in its work permit system. With the new changes, employers will have greater flexibility in hiring migrant workers directly from abroad. As per the new changes, employers will be able to bring migrant workers from abroad as estimated for their license. The updated regulations also eliminated the previously set quota, which mandated businesses to fill 75 percent of their workforce through local recruitment.

Notably, the new regulations will come into effect on June 1, 2024. The changes were made by the PAM's Board of Directors during a meeting held under the chairmanship of Deputy Prime Minister, Minister of Defense, and Acting Minister of Interior Sheikh Fahad Yousef Al-Sabah. This significant move is likely introduced to address the labor shortage issue and reduce labor costs in the country. The changes are also expected to develop the business environment.

As per the new regulation, a fee of KD 150 will be charged for issuing a work permit for the first time. Meanwhile, a fee of KD 300 will be imposed for the transfer of migrant workers from one company to another within the first three years. It is worth mentioning that the current employer’s approval is required for this transfer.