1.1 billion dinars in 757,000 domestic worker wages remain largely outside banking system
CBK pushes banks to integrate this sector workers into formal financial system; slow financial inclusion leaves domestic workers without bank accounts
Official data issued by the Central Bureau of Statistics shows that Kuwait is home to approximately 757,000 domestic workers, earning average monthly wages of around KD 120.
This translates into a combined monthly payroll of nearly 90 million dinars, or about 1.1 billion dinars annually, underscoring the sector’s significant economic and human footprint and the urgent need to integrate it into the formal banking system.
Despite the scale of this segment, progress in financial inclusion remains limited. More than a year after the Central Bank of Kuwait (CBK) directed banks to accelerate the opening of accounts for low-income earners, craftsmen and domestic workers, implementation remains slow, amid rising complaints and labor disputes linked to financial rights, reports Al-Rai daily.
In response, the Public Authority for Manpower, acting on directives from the Council of Ministers, has moved to obligate companies across all sectors to deposit workers’ salaries into commercial banks.
Compliance has been linked to file status reviews, with penalties imposed on non-compliant entities, to ensure wage protection and transparency.
Domestic workers alone account for approximately 25.3 percent of Kuwait’s total labor market. Recognizing this, the Central Bank has called on banks to expand financial inclusion through structured annual programs, effective monitoring mechanisms and tailored banking solutions to attract this segment.
The move aims to reduce reliance on unregulated cash transactions, enhance transparency and strengthen financial protection, while reinforcing Kuwait’s commitment to labor and human rights.
The CBK has emphasized that the domestic labor sector requires accessible and flexible banking solutions, given limited incomes and diverse nationalities.
Banks have been urged to simplify procedures, offer multilingual services, clearly explain terms and conditions, and provide adequate notice periods before restricting accounts due to documentation updates.
The instructions also stress the importance of financial awareness initiatives in multiple languages to improve financial literacy, explain account usage, and combat financial fraud.
Commenting on the issue, Khaled Al-Dakhnan, Head of the Kuwaiti Federation of Domestic Labor Offices, said that depositing salaries into bank accounts is a positive step that protects the rights of both workers and employers, reduces disputes, and provides clear documentation of wage payments and transfers.
Meanwhile, domestic labor affairs specialist Bassam Al-Shammari noted that while banks are obliged to open accounts for domestic workers, employers are not yet required to deposit salaries into those accounts.
He stressed the need for awareness campaigns tailored to workers’ linguistic and technical capacities to ensure effective use of banking services and safeguard financial rights for all parties.
