PAM updates worker recruitment rules, implements 3-year transfer policy

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KUWAIT CITY, April 18: In a recent meeting chaired by Sheikh Fahd Al-Yousef, the Deputy Prime Minister, Minister of Defense, and Acting Minister of Interior, the Board of Directors of the Public Authority for Manpower approved significant amendments to the mechanism for granting work permits and transferring foreign workers brought into the country. The decision, effective from June 1, aims to address labor shortages, reduce costs, and enhance the business environment.

Under the newly approved mechanism, employers are now permitted to bring in workers from abroad without the previous requirement of transferring workers from within the country. This adjustment aims to mitigate the rising costs and wages associated with labor shortages and foster a more favorable business climate.

Previously, businesses were obligated to obtain specific permits from abroad and undergo internal labor transfers, leading to increased labor prices and wages, ultimately burdening consumers. Additionally, the Board introduced an additional fee of 150 dinars for issuing a work permit for the first time and a fee of 300 dinars for transferring a worker between companies after three years, subject to employer approval.

The decision is expected to curb residency trading, facilitate commercial activities for employers, and reduce labor costs and wages, consequently leading to lower prices in sectors such as construction and contracting. Overall, these measures aim to enhance employment stability and promote economic growth in the country.

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