FILES OF 10,000 COMPANIES SUSPENDED FOR WITHHOLDING EMPLOYEES PAY
KUWAIT CITY, Oct 22: First Deputy Prime Minister and Minister of Interior Sheikh Fahad Al- Yousef stressed the importance of companies fulfilling their obligations by paying employees’ salaries and financial dues. He said monitoring the wage payment system aims to protect workers, strengthen compliance in the labor market, and put an end to practices that harm employees and damage Kuwait’s reputation.
The First Deputy Prime Minister said this during the second meeting between him and company owners, held under the title “The Wage Payment System: Protecting the Workforce and Ensuring a More Compliant Market.” The meeting reviewed the system’s performance indicators and assessed the extent to which companies comply with salary payment requirements. Sheikh Fahad revealed that some company owners recruit workers but fail to pay their salaries, while some residents receive payments in exchange for being registered with companies for which they do not actually work. He warned that such practices could be linked to money laundering offenses and negatively affect Kuwait’s international standing. The First Deputy Prime Minister said audits had identified 10,000 companies, each employing five or more workers, where some employees had gone four months without receiving their salaries. In other cases, salary delays had extended to a year and a half.
He questioned how workers, who leave their home countries and families to come to Kuwait and contribute to its commercial activity, could cover their living expenses or support their families, whether in Kuwait or abroad, without receiving their wages. Sheikh Fahad said, “Workers’ rights must never be neglected. Kuwait has never been a country that subjects anyone to injustice. Any employer who no longer wishes to retain an employee should pay full entitlements and allow the employee to leave, rather than leaving them without a salary or financial dues.” He criticized cases in which relatives of company owners, including spouses and other family members, receive salaries or labor subsidies while actual employees go unpaid. Sheikh Fahad noted that an examination of certain cases revealed 17 employees who had not received their salaries, while the company owner’s wife was receiving a salary to ensure the continuation of labor subsidies. The First Deputy Prime Minister went on to say, “Action to address these violations should have been taken much earlier.
Also, the rising number of money laundering cases has necessitated more serious measures and closer monitoring.” He explained that he had contacted a government entity holding outstanding financial dues owed to certain companies, seeking the release of those funds. The aim is to use the money to pay overdue salaries and other employee entitlements, enabling the companies to regularize their status and allowing workers whose employment has ended to leave the country in accordance with established procedures.
Sheikh Fahad stressed the importance of taking responsibility and meeting financial obligations to workers in a way that protects their rights and strengthens discipline in the labor market. He also revealed that the relevant authorities had deported 300 delivery workers as part of efforts to monitor workforce compliance and ensure adherence to the country’s laws and regulations. The First Deputy Prime Minister explained that the authorities concerned had met with delivery companies before implementing the new system and informed them of its effective date.
Hence, these measures were not introduced suddenly but were preceded by meetings and clarifications. Sheikh Fahad noted that regulating the delivery sector is closely linked to traffic safety and reducing accidents. He stressed the need to recruit qualified workers who understand the nature of the job and have the ability to perform their duties effectively. Sheikh Fahad highlighted that past practices had created disorder within the sector, making it necessary to change this culture and ensure strict compliance with the new regulations. He criticized the practice of requiring delivery workers to work excessively long hours, sometimes reaching 18 hours a day, warning that such schedules put both workers and other road users at risk due to fatigue and the increased likelihood of traffic accidents. He also questioned the total number of delivery companies operating in the country.
Regarding workforce regulation, Sheikh Fahad explained that he had communicated with officials at the Public Authority for Manpower (PAM), and that the Residency Affairs Department was considering setting a limit of between 30 and 40 percent on the proportion of employees of any single nationality within a company. Companies exceeding the proposed limit would be subject to additional fees. The proposal is currently under review. He went on to explain that employees must work only at their designated workplaces and that assigning them to work elsewhere is strictly prohibited. Regulatory authorities will take firm action against violators, with any company found employing workers outside their assigned locations facing the complete closure of its file.
Sheikh Fahad revealed that he was exploring the possibility of allowing workers under Article 20 (domestic workers) to transfer to Article 18 (private sector) residency status. He indicated that the proposal would also cover workers previously registered under government project contracts that have since expired, allowing them to join the private sector, particularly as many of these workers have clean security records. The minister questioned why such workers should not be utilized in the labor market once their specific projects have ended. Addressing various violations, Sheikh Fahad cited the case of a restaurant staffed by just one person, the nephew of the company’s owner, and noted that KD 70 million had circulated among three companies, including the company to which the restaurant belongs.
He also highlighted the case of an individual registered as receiving a monthly salary of KD 3,000 but who, in reality, receives only KD 180. “We were surprised by the increase in the number of money laundering cases currently being reviewed by State Security,” the minister revealed. Sheikh Fahad instructed officials at PAM to designate one day each week, from 8:00 am to 1:00 pm, to receive members of the public, listen to their concerns, follow up on their cases, and work towards resolving their issues. He stressed that the law would be applied to everyone without exception, saying, “I challenge anyone to claim that I have ever granted special favors (wasta) to anyone.”
Sheikh Fahad said His Highness the Amir had emphasized the importance of upholding the law, even when it involves his own sons. He stressed that Kuwait is more important than any individual, even him, and that he would not compromise when it comes to protecting the nation’s interests. Sheikh Fahad concluded by saying, “Do your job properly, and no one will bother you.”
Meanwhile, Director of PAM Engineer Rabab Al-Osaimi said the authority had identified illegal practices at some companies in which employees are paid their salaries only to have the money subsequently reclaimed from them. Al-Osaimi affirmed that PAM would take action to detect such cases and hold violating companies accountable. She explained that some companies force employees to withdraw money deposited into their bank accounts, while others deduct more than 25 percent of their salaries, both of which constitute violations of the established regulations.
Moreover, paying salaries in cash is prohibited, as all wages must be transferred through approved banking channels. Newly established companies may be granted certain exceptions during their first two months of operation. However, such exceptions will no longer be permitted once that period has elapsed. Also, some companies, including those operating in the delivery sector, have remained inactive for extended periods, with workers sometimes going on strike over delayed salary payments or housing-related issues. PAM’s inspection teams often face difficulties when visiting certain establishments, frequently finding that employee records are unavailable. As a result, inspectors must conduct repeated visits to verify workforce status and ensure companies comply with labor market laws and regulations.
Regarding wage payments, data from PAM showed that 10,000 company files had been suspended for failing to meet wage payment requirements. This represents 18.3 percent of the 48,408 registered company files covering businesses with five or more employees. This information was presented during the second meeting between Sheikh Fahad Al-Yousef and company owners. The system’s performance indicators were reviewed during the meeting and the extent to which companies were meeting their obligations to pay employees’ salaries was assessed. The data showed that the wage compliance rate reached 75.6 percent in July 2026, up 36.9 percentage points from 38.7 percent in the same month of 2025. Between January and September 2026, a total of 93,865 applications were submitted through the system, marking a 195.6 percent increase compared with the 31,757 applications recorded during the same period in 2025. PAM approved 93,852 applications during the period.
By Fares Ghaleb Al-Seyassah/Arab Times Staff
