PAM plans tougher action against companies delaying workers’ salaries
. . . wage-payment violators face stricter penalties including work permits, government contracts and other company services
Companies that fail to pay their workers’ salaries regularly could be barred from government tenders and contracts under tougher enforcement measures being pursued by Kuwait’s Public Authority for Manpower (PAM), as authorities intensify efforts to protect rights of workers including payment of salaries on regular basis and strengthen compliance across the private sector.
According to a report published by Al-Jarida, PAM will submit the names of companies that fail to meet their monthly wage-payment obligations to the Central Agency for Public Tenders, paving the way for their exclusion from government bidding until they pay salaries of workers on regular basis
The move forms part of the drive by First Deputy Prime Minister and Minister of Interior Sheikh Fahd Al-Yousef to achieve “zero” violations involving salary transfers. Although authorities have reported progress in monitoring wage payments, the stated objective is to eliminate delays and ensure employers fulfil their obligations to workers every month.
Figures cited in the report show that companies submitted 93,865 applications through the Wage Collection System between January and September, representing an increase of 195.6 percent compared with 31,757 applications during the corresponding period a year earlier. The figures indicate a substantial increase in the use of the system, although the number of applications alone does not establish the overall rate of compliance.
Under the requirements outlined by the authority, private-sector companies must collect and transfer at least 90 percent of the total salaries of workers registered on their files each month, in addition to transferring and collecting the wages due to registered workers for the preceding month.
Companies that fail to satisfy these conditions face restrictions on a range of government services. These include the issuance of new work permits and authorizations, except renewals, the registration of government contracts, assessments of manpower requirements, the issuance of certificates needed by entities concerned with tenders, and the registration of company-owned vehicles.
The measures are intended to make timely wage payments a key condition for maintaining access to essential administrative services and participating in government business. Companies that fall short of the requirements will have to address their compliance deficiencies to restore their standing.
Automated monitoring to tighten oversight
In a related development, PAM reviewed its electronic integration with the Wage Protection Platform at the Central Bank of Kuwait, a mechanism designed to improve oversight of salary transfers and strengthen the monitoring of employers’ compliance.
Under the system, employers upload wage files to their banks, which transmit the data through the Central Bank’s platform to PAM. The authority checks the information against the details of workers registered under the employer’s file before the payment process proceeds. Once the bank executes the transfers, the results are sent electronically to the authority.
The automated process is designed to verify wage data before disbursement, eliminate manual correspondence between banks and the authority, and enable faster detection of cases in which employers fail to comply with wage-payment requirements.
PAM is also compiling monthly compliance records to distinguish companies that consistently pay salaries on time from those that repeatedly delay payments. The authority is preparing a framework under which compliant companies could receive advantages based on their compliance levels.
The approach combines stricter enforcement against persistent violations with incentives for employers that maintain a reliable wage-payment record. It also gives companies an opportunity to complete their procedures and rectify shortcomings before their files are suspended.
With tender eligibility and access to key government services potentially at stake, the measures place greater emphasis on regular salary transfers as a fundamental responsibility of private-sector employers. PAM’s stated objective is to build on the progress achieved so far and eliminate wage-payment violations through continuous monitoring, electronic verification and stronger accountability.
