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Kuwait Tightens Action Against Employers With Unpaid Salaries

Published

19 hours ago

October 22, 2026

Shorya

To ensure that workers’ salary is not withheld from their employers, Kuwait has tightened its security measures on private-sector employers who have been accused of breaching this rule. About 10,000 companies allegedly have their administrative files suspended over extended salary violations by the Public Authority for Manpower (PAM). The measures are to impose stricter enforcement and guarantee workers their wages.

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Kuwait Wage Crackdown Suspends Company Files

Kuwait has blocked files of some 10,000 private sector firms with extended salary non-payment claims.The files of around 10,000 private sector companies accused of withholding salaries have been suspended by the Public Authority for Manpower. The suspensions hurt businesses hit by the losses, as they are unable to issue new work permits or transfer workers, as well as prevent some business interactions with the government.

Kuwait Wage Crackdown Targets Payroll Fraud

Employers are also accused of logging payrolls on paper forms or software as paid but not depositing the funds into employees’ bank accounts. The crackdown aims to distinguish between real salary payments and fake payroll documents and to make more accountability in adherence to the labor laws in Kuwait.

Kuwait Wage Crackdown Strengthens Bank Monitoring

PAM is collaborating with the Central Bank of Kuwait to enhance supervision of salaries payments. Authorities hope to catch discrepancies by verifying digital banking data with companies’ payroll reports and filling in monitoring loopholes to enhance transparency in private sector employment.

Kuwait Wage Crackdown Introduces Tougher Penalties

Under the provisions in the measures, employers whose conduct has been serious or repeated may be held liable to criminal prosecution, suspension and retrieval of licenses and asset freezing.

The enforcement drive will serve as a reminder of the need for wage payments to be made in a timely fashion and ensure they are in line in accordance with the Kuwait Labour Law and also indicate that wage violations could result in consequences, going beyond administrative punishment.