Sustaining social stability is the foundation of any organized system in any country. Therefore, decisions must be made with a calm approach, carefully weighing the negative consequences before the positive outcomes. The decision-maker takes the necessary measures to maximize the benefits of the present in order to build for the future and serve future generations. This introduction is necessary to discuss the decision issued by the Public Institution for Social Security (PIFSS) regarding the refund of social security contributions to employees whose citizenship has been revoked. I would like to point out an important issue.
For some time now, annual reports have been issued about an actuarial deficit that PIFSS is facing. While this deficit is theoretically a book deficit, it is still a deficit that needs to be reduced. The employees covered by this decision have served the institutions where they worked for many years, and ultimately, their citizenship was revoked for one reason or another. The installments paid by both employees and employers over the years were invested and generated profits for PIFSS. This means they are entitled to a share of those profits.
Many countries have social security systems even for resident workers who pay installments during their employment and then receive pensions after retirement. Some countries grant such residents permanent residency based on the compensation they are entitled to. When a worker is forced to stop working or loses their job for any reason, they receive monthly payments until they find a new job. Social security institutions invest the funds in profitable projects. When PIFSS pays money to those whose citizenship has been revoked, whether they have obtained citizenship in another country or not, the amounts paid to them have previously generated profits.
Since these workers will not receive the profits, who will benefit from those profits? As per general administrative principles, the side effects can be more serious than the decision itself due to their potential immediate and future consequences. Therefore, the decision-maker should strive to mitigate the impact and transform the threat into an opportunity.
Accordingly, expatriate workers whose citizenship has been revoked should be utilized as an added societal force that contributes to boosting commercial activity and, in turn, supporting the national product, even if only by a few thousand dinars annually. When these individuals leave Kuwait after receiving their due compensation, the country loses a significant workforce and their contribution to driving commercial activity forward. Kuwait possesses considerable potential, some of which is being wasted. These individuals have left the labor market, resulting in reduced spending on goods and other projects.
Therefore, it is important to develop new laws that facilitate the use of their skills, and indeed, the potential of all residents in Kuwait. As a capable and strong nation, Kuwait needs to continuously develop its laws to serve the future, foster societal progress, strengthen the state, and create a stable environment for all types of businesses, from basic services and small enterprises to major development projects. These legislative amendments contribute to creating an industrial and service-oriented environment that enhances Kuwait’s competitive position among regional countries. Gulf states are currently moving towards diversifying their economies and benefiting from the expertise of their expatriate residents.
