According to the clarification reported by Kuwaiti newspapers in recent days, employers are prohibited from reducing the salary agreed upon in an employment contract during its validity. The authority referred specifically to Article 28 of the Labour Law, which protects the wage established under the contractual relationship. This means employers must observe the agreed salary throughout the applicable contract period rather than treating reductions as an unrestricted administrative decision.

The rule has particular importance for workers who encounter disagreements with their employers over contractual salaries or payment arrangements. By reaffirming the protection of agreed wages, the authority highlighted the distinction between an unlawful reduction in contractual pay and deductions that may be legally permitted under specific circumstances. Employment disputes involving such matters must be addressed in accordance with the relevant legislation and established procedures.

Regarding loans and debts owed by employees to their employers, the authority explained that Article 59 places a specific limit on deductions from wages. Under paragraph A, no more than 10 percent of an employee’s salary may be deducted to repay loans or debts owed to the employer. The same provision prohibits employers from charging interest on such amounts, providing an additional safeguard against excessive financial burdens on workers.

For example, an employee earning KWD 400 per month would have a maximum employer-loan deduction of KWD 40 under the 10 percent rule. The remaining balance of a larger debt would have to be addressed without exceeding the applicable deduction limit. This example illustrates the legal ceiling and does not suggest that employers may impose deductions without a valid underlying financial obligation.

The authority also explained that Article 59, paragraph B, establishes a broader ceiling for salary attachment, assignment or deductions to settle debts. Such deductions generally may not exceed 25 percent of the employee’s wage, regardless of the number of debts involved. The applicable rules concerning debts owed to the employer must still be respected, and maintenance obligations are given priority when multiple debt claims compete.

Using the same monthly salary of KWD 400, the 25 percent ceiling would represent KWD 100. However, that figure should not be interpreted as automatic permission for an employer to deduct one quarter of any employee’s income. A deduction must have a lawful basis and comply with the conditions governing the relevant debt or obligation, including the separate restrictions applicable to loans owed to the employer.

Maintenance obligations receive special treatment under the legislation when different creditors seek repayment from the same employee’s wages. The authority emphasized that such obligations take priority over other debts in cases of competing claims. The framework aims to balance creditors’ legitimate interests with the employee’s need to retain a substantial proportion of regular income for living expenses and other essential responsibilities.

The clarification is particularly useful for employees who obtain salary advances or loans from their employers, as well as workers facing several financial obligations simultaneously. Understanding the difference between the 10 percent limit for employer-related loans and the broader 25 percent ceiling for debt-related deductions can help employees assess whether amounts withheld from their wages comply with the applicable legislation.

For private-sector employers, the authority’s reminder reinforces the importance of reviewing payroll systems and ensuring that contractual salaries remain protected. Businesses must also avoid charging prohibited interest on employee loans and ensure that deductions are properly documented and supported by lawful grounds. Accurate salary records and clear communication with employees can reduce misunderstandings and help prevent avoidable labour disputes.

It is important to distinguish the recent announcement from the introduction of new legislation. The authority has not announced newly created deduction percentages taking effect in November 2026. Instead, it has reiterated existing provisions under Kuwait’s Labour Law, including Articles 28 and 59, to improve awareness and encourage compliance among employers and employees.

The Public Authority for Manpower’s clarification forms part of its broader efforts to promote legal awareness, safeguard employment rights and support stable working relationships in Kuwait. Workers are encouraged to review their contracts and salary statements carefully, while employers should ensure that all deductions comply with the established rules. Where disagreements arise, the relevant competent authorities and legal procedures remain the appropriate channels for addressing employment-related financial disputes.

Source: Kuwait Public Authority for Manpower – Al Rai – Al Anba