PAM cracks down on employers failing to pay worker wages; employees can still renew residencies or transfer to other employers with compliant records
Files of numerous companies have been suspended as a precautionary measure to compel employers to comply with Article 57 of Law No. 6/2010, which mandates that companies with five or more workers pay salaries through local financial institutions and report transactions to the Authority.
The Public Authority for Manpower (PAM) has begun suspending the files of private sector employers who fail to regularly transfer their workers’ salaries into local bank accounts, in line with labor law regulations.
Official sources told Al-Rai that this action comes in response to repeated violations of Kuwait’s Private Sector Labor Law and its amendments, which mandate that companies employing five or more workers must deposit wages through official financial institutions.
The initial phase targets non-compliant employers, with the suspension serving as a warning and corrective measure. PAM will continue monitoring to ensure full adherence to wage transfer obligations.
This move follows directives from First Deputy Prime Minister and Minister of Interior Sheikh Fahad Al-Yousef, who stressed the importance of implementing the Cabinet’s decision on the regular payment of wages.
Authorities emphasized that the measure is part of efforts to uphold Kuwait’s international reputation for labor rights, particularly in protecting expatriate workers. Notably, the suspension of an employer’s file does not impact existing workers — they can still renew residencies or transfer to other employers with compliant records.
Meanwhile, the Al-Jarida, quoting sources, said numerous company files have been suspended as a precautionary measure to compel employers to comply with Article 57 of Law No. 6/2010, which mandates that companies with five or more workers pay salaries through local financial institutions and report transactions to the Authority.
Authorities emphasized that once full compliance is confirmed, suspensions will be lifted automatically without the need for review.
The measure aims to protect workers’ rights and uphold Kuwait’s human rights record. Al-Yousef has reaffirmed his commitment to equal enforcement of labor laws, warning that firms failing to pay salaries will face immediate legal action. “No one is above the law,” he stated in October 2024, adding that Kuwait’s global reputation depends on fair treatment of all workers.
However, suspended companies will be barred from hiring new workers or undergoing workforce assessments until they resolve the violations. This includes providing valid legal reasons for missed payments via PAM’s digital system, “Ash”, and resuming salary transfers as required by law.
