A wave of change is rippling through Kuwait’s labour market, and domestic workers are poised to benefit the most. From July 14, a landmark policy shift will take effect, granting expatriate domestic workers the long-awaited right to transfer their visas to the private sector. This decision, announced by Sheikh Fahad Al Yousuf Al Sabah, the First Deputy Prime Minister and Minister of Defence and Interior, marks a significant step towards a more streamlined and flexible labour system in Kuwait.
Previously, domestic workers faced limitations when it came to job mobility. Now, with the new regulations, they are empowered to seek opportunities that better align with their skills and aspirations. This newfound freedom of choice is expected to have a positive impact on both workers and employers.
However, navigating this new landscape comes with certain conditions. To transfer their visas, domestic workers must secure approval from their current employers, have completed at least one year of service with them, and pay a transfer fee of 50 Kuwaiti dinars (approximately $165 USD). Additionally, a service charge of 10 dinars (approximately $33 USD) is levied for each year of service with the current employer.
This policy change follows on the heels of a recent three-month amnesty program implemented earlier in 2024. The initiative aimed to address the issue of irregular expatriate residents, offering them a chance to rectify their legal status through means like paying fines, obtaining new residency permits, or leaving the country without penalty.
However, the Kuwaiti government has also taken a stricter stance on safety concerns. In the wake of a devastating building fire caused by an electrical malfunction that claimed 50 lives, authorities have intensified their crackdown on illegal housing. This has resulted in the eviction of several international residents deemed to be residing in unsafe structures. The Arab Times reported the eviction of bachelor expatriates in Bneid Al-Gar, leaving them without shelter after authorities enforced building code violations and cut off electricity and water supplies to three buildings deemed unsafe.
Looking beyond the domestic worker sector, the Public Authority for Manpower (PAM) introduced a separate reform in May 2024. Resolution No. 3 of 2024 streamlines the process of granting work visas and transfers for private sector employees, particularly in industries facing labour shortages like construction and contracting. This initiative aims to directly recruit skilled workers from abroad, eliminating residency and trade requirements that previously hindered the process. By simplifying the recruitment process, the government hopes to empower businesses to secure the workforce they need without incurring additional costs.
Kuwait, a nation of approximately 4.8 million people, boasts an expatriate population that makes up a significant portion – nearly two-thirds, or 3.3 million according to December 2023 statistics from the Public Authority for Civil Information (PACI). Indian expatriates, estimated at 30% of the total, play a vital role in Kuwait’s economy. They contribute their skills and expertise across various sectors, from domestic work and private businesses to professional fields like engineering, medicine, accounting, and technology.
The recent policy changes reflect Kuwait’s commitment to a more dynamic and adaptable labour market. By empowering domestic workers and streamlining recruitment processes, the government is paving the way for a future where both employers and employees can thrive. This new chapter holds the promise of a more balanced and efficient labour ecosystem that benefits all stakeholders.
