In response to labour shortages and rising costs, Kuwait has introduced significant changes to its labor permit system.
The Kuwaiti Public Authority of Manpower (PAM) has approved amendments aimed at tackling the labor shortage effectively.
One major change is the removal of the requirement for employers to relocate existing workers within Kuwait before hiring from abroad. This adjustment aims to streamline the hiring process and foster business development.
Additionally, new regulations include a revised fee structure for work permits. Initially, employees will be charged KD 150 for a work permit, with an extra KD 300 for transferring workers between companies within the first three years of employment.
These reforms seek to create a more sustainable economic environment by curbing illegal visa trading, stabilizing the labor market, and reducing labor costs.
Given that expatriates make up a significant portion of Kuwait's population, estimated at 3.2 million out of 4.8 million, these changes will profoundly impact the country's labor market and economic landscape.
