Workers’ Salaries Protected: Kuwait Limits Loan Deductions to 10%, Other Debts to 25%

KUWAIT CITY, Oct 30: The Public Authority for Manpower (PAM) has clarified that employers may not reduce workers’ agreed wages during the validity of their employment contracts, while setting strict limits on deductions for loans and other debts.

In an awareness publication titled “Clarity of Rights… Stability for the Employment Relationship,” PAM emphasized that the wage specified in an employment contract must remain unchanged throughout the contract period and cannot be reduced, in accordance with Article 28 of the Labor Law.

The authority explained that deductions from a worker’s salary to recover loans or debts owed to the employer must not exceed 10 percent of the wage. Employers are also prohibited from charging any interest on such loans or debts, under Article 59/A of the Labor Law.

Regarding other financial obligations, PAM stated that the seizure, assignment or deduction of a worker’s salary to settle debts must not exceed 25 percent of the wage, regardless of the number of outstanding debts.

The authority added that the applicable limits on deductions owed to the employer must also be taken into consideration. Where multiple debts compete for repayment, priority must be given to alimony obligations, in accordance with Article 59/B of the Labor Law.

The clarification forms part of PAM’s efforts to raise awareness of workers’ rights and employers’ obligations under Kuwait’s labor legislation.