Kuwait's PAM Removes Curbs on Hiring Workers from Abroad

Kuwait's Public Authority of Manpower (PAM) announced on Thursday, Apr. 18 that removed the restrictions on hiring workers from outside of the country to curb the rises in labor prices in the country. 

The previous regulation allowed employers in Kuwait only to hire a limited number of workers from abroad, enforcing local recruitment.

This regulation was implemented to balance out the citizen-to-expatriate ratio in Kuwait. Employers in Kuwait were only allowed to recruit workers from outside of the country under strict conditions and when the required manpower was not available locally. 

However, this has led to an increase in prices for hiring expat workers in Kuwait, which dramatically increased overall labor prices. 

The new regulation will help curb the increasing labor prices in Kuwait and it will be effective from Jun. 1.

Employers in Kuwait will have to pay a fee of KD 150 for first-time recruitment of each worker from abroad.

The new regulation also prohibits the transfer of expat workers to other employers in Kuwait before the completion of three years.

If the expat employee still wants to transfer, a fee of KD 300 needs to be paid with the approval of their current employers for the transfer to be completed. 

Other than curbing labor prices, the new regulation will help fight human trafficking in Kuwait and help employers conduct their transactions with ease

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