Kuwait to Streamline Work Visa Process and Transfers in June

The Public Authority for Manpower (PAM) in Kuwait is gearing up to implement a new system for granting work visas and transfers for private sector employees, starting early June 2024. This move comes a month after Resolution No. 3 of 2024 was issued, outlining significant changes to the labour market.

Key Provisions of the New Resolution

New Needs-Based Work Permits

Under the revised system, employers seeking to hire foreign workers will need to obtain work permits. These permits will be issued by PAM based on a thorough needs assessment by the relevant department. To cover administrative costs, a new fee of 150 Kuwaiti dinars (approximately USD 490) will be charged for each work permit.

Transfer Fees

The new system also introduces a streamlined process for transferring employees between employers. Workers recruited with a work permit can now be transferred to another company within three years for a fee of 300 Kuwaiti dinars (approximately USD 980).

Exemptions

Certain entities are exempt from these new regulations, including:

• Government-owned companies
• Healthcare facilities licensed by the Ministry of Health
• Educational institutions
• Foreign investors approved by the National Promotion Authority
• Sports clubs
• Public benefits associations
• Cooperative societies
• Labor unions
• Charitable endowments
• Licensed agricultural plots
• Fishing activities
• Livestock operations
• Commercial and investment real estate
• Industrial facilities
• Small industries

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Addressing Labor Market Challenges

Resolution No. 3 of 2024 aims to address severe labour shortages in sectors like construction and contracting, where wages have surged dramatically.

By allowing direct recruitment from abroad, the government hopes to eliminate the residency trade and provide businesses with the necessary workforce without inflating labour costs.

Expected Benefits of the New System

Resolution No. 3 of 2024 aims to achieve several key objectives:

1. Reduce Labor Costs and Prices: By allowing companies to hire based on specific needs, the government hopes to control rising labour costs and ultimately lower prices for goods and services.

2. Targeted Recruitment: Businesses can now recruit foreign workers based on their actual needs, eliminating the need for internal transfers within the country.

3. Combat Residency Trade: The new system aims to crack down on the illegal practice of residency trading.

4. Address Labor Shortages in Key Sectors: Streamlined recruitment processes should ease labour shortages in critical sectors like construction, where wages have skyrocketed due to a lack of qualified workers.

Also Read: Kuwait Visa Update – Clarification on Openings and Application Process

Conclusion

The implementation of this new system in June 2024 is expected to bring significant changes to Kuwait’s labour market. By focusing on needs-based recruitment and stricter regulations, the government aims to create a more efficient and transparent system for both employers and foreign workers.