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Sunday, 25th October 2026
Kuwait Flags 8,849 Companies Over Wage Violations, Tightens Salary Deduction Rules
25 October 2026 20:10 PM
NEWS DESK
Kuwait’s Public Authority for Manpower (PAM) has officially flagged the records of 8,849 companies employing five or more workers over financial irregularities, including failure to pay employees’ wages regularly.
Meanwhile, 39,559 companies in the same category have been recognised as compliant for paying workers on time in accordance with government regulations.
According to information from the authority, PAM’s digital Wage Payment Monitoring System currently contains 100,252 registered employer files. Of these, 51,844 belong to small businesses or employers with fewer than five workers.
The remaining 48,408 files relate to medium-sized and large establishments employing five or more workers. Among these, 8,849 companies were found to have evidence of wage-related irregularities.
In a separate move to strengthen workers’ financial protection, PAM has specified up to 13 legitimate grounds on which employers may deduct money from employees’ salaries.
The permitted reasons include unpaid leave taken inside or outside the country, childcare leave, sick leave, partially paid leave, suspension, leaving the workplace without permission, refusal to work, absence without prior notice and other legally recognised circumstances related to employees’ professional conduct.
Under the new rules, employers seeking to deduct money from a worker’s salary must submit the necessary official and legally valid documents to establish the legal basis for the deduction.
PAM has also imposed a strict ceiling on salary deductions, stating that employers cannot deduct more than 25 per cent of an employee’s basic salary in any single month.
Even when deductions fall within the 25 per cent limit, employers must provide specific supporting documents to demonstrate that the deductions are lawful.
The measures are aimed at strengthening wage monitoring, improving employer compliance and safeguarding workers against unjustified salary deductions.
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