Kuwait Bans Banks From Taking Full Salaries of Debtors

Banks in Kuwait are no longer allowed to take the entire salary of a debtor to recover dues, according to a new legal clarification issued by the Head of the General Administration of Execution, Counselor Abdullah Al-Othman.

In an official letter sent to the Governor of the Central Bank of Kuwait, Al-Othman referenced the newly enacted Decree-Law No. 59 of 2025, which updates parts of the country’s Civil and Commercial Procedures Law. Specifically, the amendments affect Articles 227 and 230, which cover the rules around asset seizures.

The key point? These updates make it clear that even if someone owes money, banks can’t touch their full salary, that includes employees in government ministries, private companies, and even the oil sector.

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Banks Violating the Law

Al-Othman raised concerns about a growing trend: some banks have reportedly been deducting full salaries from debtors without following the proper legal process. That’s a direct violation of Article 216, paragraph (z) of the Civil Procedure Code, which clearly states that:

“Wages and salaries may not be seized, unless under a special law, and even then, only up to half the amount.”

What Happens Next?

He’s now calling on the Central Bank of Kuwait to step in and send a clear message to all banks across the country: follow the law. That means no more full-salary deductions, and any attempt to recover debts must stick to the 50% limit unless other rules apply.

Al-Othman also reminded banks that official enforcement notices from the Execution Department already require them to “abide by the legal provisions governing salary seizures.”

Bottom Line

If you’re a salaried employee in Kuwait and dealing with debt, this legal update offers important protection. Banks can no longer go after your full paycheck and any that try could be stepping outside the law.