Kuwait Eases Work Permit Rules for Expats Over 60
In a landmark decision that has been met with widespread approval, Kuwait has officially lifted restrictions on expatriates aged 60 and above without university degrees, allowing them to renew or transfer their work permits with significantly fewer bureaucratic hurdles. This policy change, announced by Sheikh Fahad Yousef Saud Al Sabah, the acting Prime Minister and Minister of Defence and Interior, represents a major shift from previous regulations that imposed financial burdens and strict conditions on older foreign workers.
Background: The Previous Policy’s Impact
For years, expatriates in this age group who did not hold university degrees faced challenging conditions. Under the former policy, these individuals were required to pay an annual fee of KD 250 (approximately $800) and secure comprehensive private health insurance, which could cost up to KD 900 (around $3,000) annually. This made it financially difficult for many long-term expatriate workers to continue living and working in Kuwait, leading to widespread criticism from both expatriate communities and local business owners who relied on their experienced workforce.
The policy not only strained the financial resources of these expatriates but also created labor shortages in certain sectors, particularly those dependent on skilled, experienced workers who had spent decades contributing to Kuwait’s economy.
Key Changes in the New Decision
The latest decision cancels Article 1 of the Public Authority for Manpower (PAM) decision No. 294/2023. This means that expatriate workers aged 60 and above, even if they only possess high school diplomas or lower educational qualifications, can now renew or transfer their work permits without facing the previously mandated fees or the requirement for a university degree.
The new regulations restore the system to its earlier, more flexible framework. Expatriates can now move more freely within the job market, shifting between employers in the private sector without the bureaucratic red tape that previously restricted their employment options.
Additional Amendments to Labor Regulations
In addition to easing restrictions for older expatriates, Sheikh Fahad also announced amendments to Article 14 of decision No. 9/2016, which governs employment practices for workers in small and medium enterprises (SMEs).
Under the updated rules:
- SME workers can transfer to another company within the same sector after completing just one year with their current employer, provided they have their employer’s approval.
- Transfers within the same sector and within the same employer’s file are now allowed without any time restrictions if a fee of KD 300 is paid.
- Government contract workers and those in the “distinguished lists” sector can now transfer to roles outside their designated sectors, a move that broadens employment opportunities for many.
These changes are effective immediately following their publication in Kuwait’s official gazette.
Implications for Kuwait’s Labor Market
The new policy signals a significant shift towards a more dynamic and inclusive labor market in Kuwait. Analysts suggest that this change will:
- Improve workforce mobility by allowing older expatriates to continue contributing to the economy.
- Reduce operational costs for businesses that previously struggled with the high costs associated with hiring or retaining older expatriate workers.
- Encourage long-term expatriates to remain in Kuwait, preserving the institutional knowledge and experience they bring to their roles.
Business leaders, especially those in industries reliant on experienced labor, such as construction, healthcare, and technical services, have welcomed the changes. They argue that the revised policy will help address skills shortages and ensure that businesses can retain their most knowledgeable and skilled employees.
Reactions from the Expatriate Community
The expatriate community has largely applauded the government’s decision. Many see it as a recognition of the vital role that older workers play in Kuwait’s economic development. For expatriates who have spent decades building their lives in Kuwait, the policy change provides not just job security but also peace of mind.
Mohammad Ali, a 62-year-old technician who has lived in Kuwait for over 30 years, shared his thoughts: “This is great news for people like me. I have given my best years to this country, and now I can continue to work without worrying about high fees and complicated paperwork.”
Similarly, expatriate associations and advocacy groups have praised the government for listening to their concerns and acting decisively to address the challenges faced by older workers.
A Broader Strategy for Economic Growth
Experts believe that this policy change is part of Kuwait’s broader strategy to diversify its economy and create a more sustainable, knowledge-based workforce. By removing barriers that discourage experienced expatriates from staying in the country, Kuwait is positioning itself to benefit from a more stable and skilled labor force.
Moreover, the amendments reflect Kuwait’s commitment to improving its business environment, attracting foreign investments, and supporting the private sector’s growth. As the country continues to implement its Vision 2035 development plan, creating flexible labor policies will be crucial to achieving long-term economic goals.
Conclusion
Kuwait’s recent decision to ease work permit restrictions for expatriates over 60 marks a progressive step towards fostering an inclusive and dynamic labor market. By eliminating unnecessary barriers and introducing more flexible employment regulations, the government is not only addressing the immediate needs of its expatriate workforce but also laying the foundation for sustainable economic growth.
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