KUWAIT CITY, Dec 21: According to official data from the Central Statistical Bureau, Kuwait has 757,000 domestic workers receiving an average monthly salary of KD 120. This amounts to a total monthly payroll of around 90 million dinars, or approximately 1.1 billion dinars annually, reports Al-Rai daily. In consideration of their significance as both a financial and human resource, integrating domestic workers into the formal banking system is considered essential for promoting financial inclusion and ensuring the integrity of transactions for this segment of the population. However, despite directives from the Central Bank of Kuwait issued over a year ago urging banks to facilitate account openings for low-income individuals, tradespeople, and domestic workers, implementation has been slow and limited. The need for action is urgent, given the rising number of labor complaints and financial disputes.

This situation prompted the Public Authority for Manpower (PAM), based on Cabinet’s instructions, to mandate all companies to deposit their employees’ salaries into commercial banks. The move aims to ensure that workers receive their entitlements, linking compliance to employee file status and imposing penalties on companies that fail to adhere to the rules. Given the importance of low-income individuals, particularly domestic workers who make up approximately 25.3 percent of Kuwait’s total labor market, the Central Bank has urged banks to expand financial inclusion. Banks are encouraged to implement clear annual programs with effective monitoring mechanisms to attract these workers for integrating them into the formal banking system. This initiative aims to enhance transparency, improve financial protection, and reduce the risks associated with unregulated cash transactions. Moreover, promoting financial inclusion for domestic workers reinforces Kuwait’s commitment to safeguarding labor rights and human rights more broadly.

The Central Bank has urged banks to provide accessible banking solutions for domestic workers, considering their limited income and diverse nationalities, as well as adopt flexible account opening policies, simplify procedures, and provide services in multiple languages. Annual programs should be developed to expand financial inclusion, monitor implementation, and identify beneficiaries. Banks must inform customers clearly about terms, conditions, and risks, and allow time to update personal information before restricting accounts. In addition, financial literacy initiatives should be strengthened through multilingual awareness campaigns, teaching account management and fraud prevention.

Khaled Al-Dakhnan, head of the Kuwait Union of Domestic Labor Offices, described the deposit of domestic workers’ salaries into bank accounts as a positive measure that safeguards the rights of both workers and employers. In a press statement, he said financial inclusion for domestic workers can reduce recurring disputes over wages, while bank accounts provide proof of salary receipt and track how money is spent or transferred abroad, supporting Kuwait’s efforts in protection of human rights.