The Public Authority for Manpower (PAM) has clarified strict protections for workers’ salaries in Kuwait. According to Article 28 of the Labor Law, employers cannot reduce the wage specified in an employment contract at any point during the contract period.
PAM has set clear limits on salary deductions. Deductions to recover loans or debts owed to the employer must not exceed 10 percent of the wage. Employers are prohibited from charging interest on such loans or debts under Article 59/A of the Labor Law.
For other financial obligations, deductions to settle debts cannot exceed 25 percent of the wage, regardless of how many debts are outstanding. When multiple debts compete for repayment, alimony obligations receive priority under Article 59/B of the Labor Law.
These guidelines are part of PAM’s awareness campaign titled “Clarity of Rights… Stability for the Employment Relationship,” designed to inform workers of their rights and employers of their obligations under Kuwait’s labor legislation.
What This Means for Expats: If your employer deducts salary for loans or other debts, verify the amounts comply with these legal limits—10 percent for employer loans and 25 percent for other debts combined.
Source: Arab Times
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