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Wednesday, September 10, 2025
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New regulations overhaul hiring and supervision in Kuwait’s cooperative societies

Stricter criteria, salary caps introduced for cooperative society supervisors

publish time

07/09/2025

publish time

07/09/2025

New regulations overhaul hiring and supervision in Kuwait’s cooperative societies
Kuwait's Ministry of Social Affairs updates rules on cooperative society employment and supervisory appointments.

KUWAIT CITY, Sept 7: Kuwait’s Minister of Social Affairs, Family and Childhood Affairs, Amthal Al-Huwailah, has issued Ministerial Resolution No. 203 of 2025 amending the regulations governing employment and supervisory appointments in cooperative societies, according to the Official Gazette – Kuwait Alyoum.

The new decision replaces Articles 49 to 54 of the Cooperative Work Regulations originally issued under Resolution No. 46/T of 2021 and amended by Resolution No. 68 of 2013. The amendments are aimed at promoting rational hiring practices, reinforcing national employment targets, and ensuring transparent and merit-based appointments to leadership roles within cooperative societies.

Dr. Amthal Al-Huwailah, the Minister of Social Affairs, Family and Childhood Affairs

Under the amended Article 49, cooperative societies must adopt a rational hiring policy based on actual operational needs, without exceeding 6% of total sales on salaries — excluding supervisory positions. This figure is calculated from the most recent financial report, excluding exceptional sales periods. Exceptions to the cap are permitted if additional hiring supports national employment quotas, addresses needs arising from the opening of new branches, or is necessary to appoint an internal auditor.

Eligibility criteria for supervisory positions

Article 50 outlines nine specific conditions for candidates seeking supervisory roles:

  • Must be Kuwaiti nationals.
  • Possess good conduct and a clean criminal record, unless rehabilitated.
  • Not have served on boards of dissolved cooperative societies due to serious violations, unless the legal restriction period has passed.
  • Must not be retired for any reason.
  • Must pass admission exams and personal interviews as set by the Ministry.
  • Must resign from any current employment upon final acceptance.
  • Hold a relevant academic degree certified by the Ministry of Higher Education.
  • Submit applications via the “Fakhrna” platform at the Public Authority for Manpower.
  • Possess necessary experience, including:

Mandatory filling of vacant positions

As per Article 51, cooperative societies are required to coordinate with the Ministry of Social Affairs within two months of any supervisory position becoming vacant, following prescribed procedures for recruitment.

Article 52 establishes a committee tasked with overseeing supervisory appointments. It will be chaired by the Undersecretary of the Ministry of Social Affairs and include members from the Public Authority for Manpower, the Federation of Consumer Cooperative Societies, and a representative of the relevant sector within the Ministry.

The committee’s responsibilities include:

  • Defining specializations required for each role
  • Reviewing applications
  • Referring applicants for standardized testing
  • Evaluating results (candidates must score 80% or higher)
  • Conducting interviews
  • Recommending qualified candidates

According to Article 53, the committee will submit its findings to the relevant department at the Ministry, which will notify the cooperative's board of directors to formalize the appointment and draw up an employment contract in triplicate for Ministry approval.

Remuneration guidelines for large cooperatives

Article 54 sets salary structures for cooperatives with annual sales of 15 million Kuwaiti dinars or more:

  • General Manager: KD 2,000 basic salary + KD 20 annual bonus
  • Deputy General Manager: KD 1,500 basic salary + KD 20 annual bonus
  • Department Head: KD 1,000 basic salary + KD 20 annual bonus

The committee will determine the compensation for societies with lower sales volumes and may exempt such associations from certain supervisory roles based on their financial capacity. Additionally, periodic bonuses throughout a supervisory employee’s service must not exceed 50% of the basic salary.

The regulation stipulates that any provision conflicting with this resolution is repealed. The decision came into effect upon its publication in the Official Gazette.