Kuwait Scraps Restrictions on Expats Over 60 and Introduces Labor Market Reforms
In a significant shift in policy, Kuwait’s Public Authority of Manpower announced on Wednesday the removal of all restrictions on expatriates aged over 60. This new decision will make it easier for older expatriates to renew their residencies and work permits, as they will now be required to pay the same fees as other expat workers. This move is part of a broader effort to make the country’s labor market more flexible and inclusive, especially for expatriates contributing to its economy.
Changes to Residency Rules for Expats Over 60
Previously, expatriates over 60 years old without a university degree faced stringent requirements when it came to renewing their residency and work permits. These individuals were required to pay an annual special fee of KD 250, along with the cost of a comprehensive health insurance policy from a private insurer, which had to be worth at least KD 500 per year. On top of these fees, expats were also burdened with other additional costs, leading to a total of approximately KD 900 annually for the renewal of their residency.
The decision to lift these restrictions came after criticism from Deputy Prime Minister and Interior and Defense Minister Sheikh Fahad Al-Yousef Al-Sabah, who described these fees and limitations as a “disgrace” for Kuwait. The new rule now means that expatriates over 60 will pay a more reasonable KD 70 annually for government health insurance and other associated fees, aligning them with the fees paid by other expat workers. This move marks a positive change, especially for elderly expats who have contributed significantly to Kuwait’s workforce but were previously forced to leave the country due to high renewal costs or the inability to meet the stringent requirements.
Four years ago, Kuwait had imposed a complete ban on the renewal of residency for expatriates over the age of 60 without a degree, which led to the expulsion of many senior workers from the country. Although the government later relaxed the policy by replacing the ban with hefty fees, many expatriates could not afford the costs and were forced to leave. The recent decision to scrap these high fees and restrictions is expected to benefit a significant number of expatriates, providing them with the opportunity to stay in Kuwait for longer periods without the burden of excessive costs.
Labor Market Reforms: Boosting Flexibility and Opportunities
In addition to scrapping the restrictions on expats over 60, the Public Authority of Manpower also introduced several reforms aimed at improving flexibility in the labor market. The authority has now opened up the recruitment process for employers, allowing all private sector companies to recruit workers from abroad. Previously, only a limited number of companies were permitted to hire employees from outside the country. By lifting this restriction, the government hopes to enhance competition and create more job opportunities within Kuwait’s private sector.
The labor market changes also extend to the transferability of workers. Under the new decision, employees working in small and medium-sized enterprises (SMEs) will now be able to transfer to another employer after just one year of service, down from the previous three-year requirement. This move is expected to increase worker mobility and allow them to seek better opportunities within the same sector. However, the transfer is subject to the prior approval of the employee’s current sponsor.
Moreover, employers of SMEs will be granted the flexibility to transfer their workers immediately to another project or company they own. This can be done by paying a fee of KD 300, bypassing the one-year requirement. These changes are designed to offer greater flexibility to both workers and employers in managing their workforce, ultimately enhancing the overall efficiency of the labor market.
The Impact of These Reforms
These new labor market reforms come at a time when Kuwait is looking to modernize its workforce policies and attract more skilled workers to the country. By removing the restrictions on expats over 60, the government is recognizing the valuable contribution of older expatriates, who have decades of experience and knowledge that can benefit Kuwait’s economy. The simplification of residency and work permit renewals for these workers helps retain skilled labor and maintain a stable workforce, particularly in sectors that rely heavily on expatriate employees.
The decision to allow more employers to recruit workers from abroad, coupled with the easing of worker transfer rules, will also help address labor shortages in various sectors and give companies the flexibility they need to adjust to changing market conditions. These reforms are expected to improve the overall functioning of the labor market, encouraging more private sector investment and stimulating economic growth.
Furthermore, the change in policy reflects a shift in Kuwait’s approach to foreign labor, aligning it with more modern and flexible practices seen in other Gulf Cooperation Council (GCC) countries. With more competitive and accessible labor policies, Kuwait could strengthen its position as a regional economic hub.
Conclusion
Kuwait’s recent labor market reforms, including the removal of restrictions on expatriates over 60 and the relaxation of recruitment and worker transfer rules, represent a significant step toward modernizing the country’s workforce policies. By removing barriers and reducing unnecessary fees, the government is creating a more inclusive environment for expatriates, enabling them to continue contributing to the country’s economy. These changes also foster greater flexibility in the labor market, providing both workers and employers with more opportunities and improved working conditions. As Kuwait adapts to the evolving needs of its labor market, these reforms are expected to enhance the nation’s competitiveness and long-term economic sustainability.