No deposit, no business: Companies face suspension over unpaid salaries
Authorities have introduced stricter enforcement measures, including company file suspensions, to ensure salaries are deposited properly, signaling a stronger commitment to protecting workers’ financial rights and promoting employer accountability.
- PAM introduces new digital mechanism allowing private-sector employees to know salary deductions, how much was deducted and why — a move aimed at protecting workers’ rights.
- Companies failing to transfer salaries as required face immediate penalties, starting with the suspension or temporary closure of the company’s file until violations are corrected and pending salary deposits are completed.
The Public Authority for Manpower has begun implementing a new electronic mechanism enabling private-sector employees to view the reasons and amounts of salary deductions through the unified government application “Sahel.”
According to informed sources, the newly-launched service forms part of a broader package of regulatory measures introduced over recent months to ensure companies comply with requirements to deposit employees’ salaries on time and in full into their bank accounts.
The initiative also allows authorities to closely monitor cases involving delayed payments or salary shortfalls, reinforcing oversight of wage compliance across the private sector, reports Al-Rai daily.
Sources explained that companies failing to transfer salaries as required face immediate penalties, starting with the suspension or temporary closure of the company’s file until violations are corrected and pending salary deposits are completed.
Under the new system, any discrepancy or shortage in salary transfers is automatically detected through PAM’s electronic monitoring platform.
Once identified, the company’s file is suspended until the employer provides and documents the reasons for the shortfall. At the same time, the affected employee receives a notification through the “Sahel” application detailing the deduction and its justification.
The authority also continues coordinating with the “Sahel” platform to send workers additional notifications, including alerts related to absences and other labor procedures linking employees to their employers.
The step is intended to enhance transparency, improve communication, and safeguard workers’ legal rights within Kuwait’s labor market.
