Kuwait Restricts Six Services for Companies Violating Wage Payment Requirements and Sets Two Compliance Conditions

Kuwait’s Public Authority for Manpower has outlined important compliance requirements for private-sector companies concerning the payment of employee wages, warning that failure to meet the specified conditions can result in restrictions on essential administrative services.

The measures form part of the government’s continuing efforts to strengthen labour protections, address delayed salary payments and ensure that employers fulfil their financial obligations to workers. The requirements are particularly relevant to businesses employing Kuwaiti citizens and expatriate residents, as well as companies that depend on government contracts or recruitment services.

According to information published by Kuwait’s Al Rai newspaper on October 22, 2026, the authority has established two principal requirements for companies to maintain compliant wage records. The first condition requires the payment of wages covering at least 90 percent of the total workforce registered under the company’s file each month. The second condition requires the wages of registered employees for the most recent month to be duly settled. The authority explained that breaches of these requirements may result in administrative restrictions designed to encourage companies to correct non-compliance and fulfil their wage obligations.

The six services subject to restriction include the issuance of work permits, the issuance of work authorizations except renewals, the registration of government contracts, basic manpower needs assessments, the issuance of certificates required by authorities responsible for approvals and tenders, and the registration of vehicles owned by the company. These services are essential to many business operations, particularly for establishments seeking to recruit additional employees, participate in public-sector contracts or complete official commercial and administrative transactions.

The Public Authority for Manpower has also outlined an electronic integration process with the wage protection platform operated through the Central Bank of Kuwait. Under the process, an employer submits its wage payment file to its bank, which transfers the relevant information electronically to the authority for verification against registered workforce records. Once the information has been reviewed and payment approved, the bank processes the transfers and electronically reports the results. The arrangement is intended to improve the accuracy of wage monitoring and reduce reliance on manual correspondence between banks and regulatory bodies.

The measures are expected to help authorities identify companies that fail to meet wage payment requirements more quickly and strengthen oversight of employment records and salary transfers. They also reinforce the importance of maintaining accurate employee information and ensuring that contractual wages are paid through the appropriate channels. Employers are encouraged to review their wage records and address any discrepancies before they affect their access to official services. Importantly, the 90 percent compliance threshold does not authorize employers to deduct ten percent from individual employees’ salaries. The restrictions concern the specific administrative services identified by the authority and should not be confused with an automatic closure of every non-compliant business.

Source: Kuwait Public Authority for Manpower, Al Rai and Al Anba newspapers.