Labor Authority: Two Conditions for Monthly Settlement of Labor Wage Files

- Failure to comply with either condition will result in the restriction of six services for the company.

- The company is required to transfer salaries for 90% of the total workers registered under its file, and to fully transfer salaries for the last month.

As part of government efforts to govern and address the issue of delayed worker salaries, the Public Authority for Manpower outlined the electronic linkage mechanism with the Wage Protection Platform at the Central Bank of Kuwait. It mandated that each company transfer salaries for 90% of the total workers registered under its file monthly, in addition to “transferring the salaries of workers registered for the last month.”

The Authority clarified that failure to comply with either of the two conditions will lead to the restriction of six services for the company, including the issuance of work permits and work authorizations (excluding renewals), registration of government contracts, estimation of basic needs, issuance of certificates for entities involved in approvals and tenders, as well as the registration of vehicles owned by the company.

Regarding the electronic linkage mechanism, the Authority confirmed that it begins with the employer uploading the salary file to the bank, which in turn transmits the data through the Central Bank’s Wage Protection Platform to the Authority for verification against the worker data registered in the file. After verification, the payment is approved, the bank executes the disbursement, and the results are electronically sent to the Authority.

The Ministry of Manpower explained that the electronic system aims to verify salary data before disbursement, eliminate manual correspondence between banks, and electronically link the Authority to salary transfer results, thereby accelerating the detection of non-compliance with salary disbursement regulations.