KPC mandates retirement after 35 years of service for oil sector officials, with conditional exceptions

The Board of Directors of the Kuwait Petroleum Corporation (KPC) has issued six decisions introducing a series of updates to employee policies and administrative procedures that apply across the corporation and its affiliated oil companies.
The changes affect regulations on service termination, consultant appointments, travel benefits, housing allowances, and election-related leave, and also include a significant adjustment to hiring rates for technical positions.
One of the key decisions addresses the termination of service for employees at the managerial level, team leaders, and those in equivalent positions who have completed 35 years of service as recorded by the Public Authority for Social Security.
This termination will be implemented immediately, excluding periods of maritime secondment at the Kuwait Oil Tanker Company. Employees subject to this decision must be given at least three months’ notice prior to the end of their service.
While the termination rule is binding, the Board has approved a mechanism for granting exceptions in certain cases. Managers and team leaders may have their service extended if specific conditions are met.
The managing director of the company must submit a written request to the KPC CEO justifying the need for the extension and specifying the proposed duration.
Approval is contingent on meeting the following criteria: the position must still be part of the company’s organizational structure, the employee must have rare technical expertise or be responsible for ongoing strategic oil sector projects, and there must be no suitable replacement.
Additional conditions for granting a service extension include maintaining a performance rating of “very good” or higher for the past three years, a clean disciplinary record during the same period, and medical fitness to continue working. The extension is capped at three years or until the employee turns 60, whichever comes first. The employee must also be eligible for retirement pension disbursement.
In a separate decision, KPC amended its regulations regarding the appointment of non-Kuwaiti consultants employed under special contracts. The updated policy allows consultants to take unpaid special leave under specific conditions and grants an annual round-trip economy class ticket from Kuwait to their home country. This benefit extends to the consultant, their spouse, and up to two children under the age of 19, provided they reside with the consultant.
The Board also introduced changes to the travel ticket policy for both Kuwaiti and non-Kuwaiti employees. Travel tickets will now be issued after the employee completes one year of service and will be disbursed at the start of each calendar year, without being tied to annual leave.
Kuwaiti employees are entitled to ticket reimbursement for themselves, their spouse, and up to four children, with rates set based on ticket class and the age of the children. For first-class tickets, the rates are 427 dinars for adults and children aged 12 to 19, 423 dinars for younger children, and 55 dinars for newborns. Economy-class ticket rates are 265 dinars for adults, 199 dinars for children, and 36 dinars for newborns.
Non-Kuwaiti employees in grades 6 and below are eligible for an economy-class return ticket every two years. Those in grades 13 to 18 receive an annual economy-class return ticket for themselves, their spouse, and up to four children, provided the children reside with them.
As part of its social policy reforms, KPC has also amended the housing allowance regulations. Under the new rules, widowed female employees with children or divorced women who have custody of their children are eligible for monthly housing grants, provided they have not already received a housing-related court ruling. In cases where a court ruling exists, KPC will pay only the difference, if applicable.
The Board also approved a new policy for employees who wish to run in National Assembly or Municipal Council elections. Candidates will be granted fully paid leave starting the day after their name appears on the official final list and lasting until the end of the election process. If the employee has no remaining annual leave, the absence will be considered unpaid.
Separately, the Federation of Petroleum and Petrochemical Workers, along with affiliated oil unions, announced an increase in the acceptance rate for diploma holders in technical specializations. The rate has been raised to 71 percent, up from around 50 percent. This change is aimed at expanding employment opportunities for Kuwaiti youth in the oil sector.
The union acknowledged the coordinated efforts made before and after the decision to ensure fairness for all applicants in technical fields, emphasizing the leadership’s dedication to fostering national talent. Sources told Al-Rai that around 350 Kuwaiti citizens—both men and women—are expected to benefit from this employment policy shift.