In a decisive push to safeguard workers’ financial rights and enforce strict labor compliance, the Public Authority for Manpower (PAM) in Kuwait has flagged thousands of private sector employers for failing to disburse employee wages on time.
According to official figures released by the authority, out of 48,408 registered business files involving establishments with five or more workers, a striking 8,849 employer files have been officially flagged for salary payment violations.
Meanwhile, 39,559 files remain in full compliance with the nation’s rigorous wage-protection regulations, underscoring both persistent compliance challenges and the government’s active monitoring framework.
The latest enforcement data highlights PAM’s comprehensive wage-payment tracking system, which oversees more than 100,000 total employer files across the country, including smaller operations with fewer than five employees.
To ensure absolute transparency and protect workers from unlawful wage withholding, the authority also reiterated the strict legal framework governing payroll adjustments.
Employers are legally permitted to make salary deductions under only 13 explicit, valid circumstances—such as unapproved absenteeism, refusal to work, disciplinary suspensions, and various categories of unpaid or sick leave.
Crucially, the regulations mandate that companies provide documented substantiation for the legality of any financial deduction.
To prevent employee exploitation and maintain economic stability, the labor code enforces a strict statutory ceiling, capping any allowable monthly wage deduction at a maximum of 25 percent.
By combining rigorous automated salary monitoring with strict enforcement of deduction limits, Kuwait’s labor authorities continue to prioritize worker welfare and corporate accountability across the private sector.
