Salary problems are among the most common reasons private-sector workers in Kuwait seek legal advice: a salary paid late every month, deductions that were never agreed, an employer who pays part of the wage in cash, or a sudden cut in pay “because business is slow”. Kuwait’s Labour Law in the Private Sector contains a dedicated chapter on wages that answers most of these questions. It defines what counts as the wage, fixes when and how the wage must be paid, caps deductions and attachments, and prohibits reducing a worker’s pay during employment. This guide explains those rules in plain English for employees and employers. It is a practical summary of the Arabic text of the law, not an official translation.
What Counts as the Wage
Article 55 gives the wage a broad meaning. The wage is the basic pay the worker receives, or should receive, for the work, plus all the elements set out in the employment contract or in the employer’s internal regulations. In addition, the law includes in the wage anything the worker receives on a regular, periodic basis, such as allowances, bonuses, grants, gifts or cash benefits. The social allowance and children’s allowance paid to Kuwaiti workers under Law No. 19 of 2000 are governed by that law and are mentioned separately.
Why does this matter? Because the wage is the base for calculating many other rights, including overtime, leave pay and the end-of-service gratuity. A housing or transport allowance paid every month is generally part of the wage, so an employer cannot exclude it simply by calling it something other than salary. For how the wage feeds into the gratuity, see our guide to the end-of-service gratuity.
Article 55 also deals with workers paid a share of net profits. If the business makes no profit, or a very small one, so that the worker’s share no longer reflects the work performed, the wage must be assessed on the basis of the wage paid for similar work, the custom of the profession, or the requirements of fairness.
When and How Wages Must Be Paid
Article 56 sets the basic payment rules. Wages are paid on a working day, in the currency in circulation, and at the following minimum frequency:
- Monthly-paid workers: at least once a month.
- Other workers: at least once every two weeks.
The same article adds that payment may not be delayed beyond the seventh day from the date the wage falls due. A salary that is routinely paid in the third week of the following month is therefore a breach of the law, not a matter of company practice.
Article 57 requires an employer with at least five workers to pay what is owed to them into their accounts with local financial institutions. The Public Authority for Manpower may ask for copies of the transfer statements sent to those institutions. The Council of Ministers may exempt certain activities from the requirement to transfer expatriate workers’ wages to local institutions. In practice, the bank transfer record is the worker’s best evidence of what was actually paid and when.
Limits on Deductions and Attachments
Article 59 protects the wage from being eroded by debts:
- Loans or debts owed to the employer: the employer may not deduct more than 10 per cent of the worker’s wage to recover them, and may not charge any interest on them.
- Overall ceiling: the wage may not be attached, assigned or deducted beyond 25 per cent, whether for a maintenance (nafaqa) debt, a debt for food or clothing, or other debts including the employer’s own debt.
- Priority: where several debts compete, the maintenance debt comes first.
Disciplinary deductions imposed as a penalty for misconduct are a separate matter governed by the disciplinary rules; we explain them in Arabic in our article on disciplinary penalties and salary deductions.
Article 60 adds a further protection: a worker cannot be required to buy food or goods from particular shops or from the employer’s own products.
No Reduction of Pay and No Change of Category Without Consent
Article 62 states clearly that the worker’s wage may not be reduced during employment for any reason. An employer who wants to lower costs cannot simply cut salaries, even temporarily, and a worker who has been paid less than the contractual wage can claim the difference.
Article 58 protects monthly-paid workers specifically: the employer may not move a monthly-paid worker to another pay category, such as daily or piece-rate pay, without the worker’s written consent, and even with consent the rights the worker earned while on monthly pay are preserved.
Article 62 also explains how to calculate a worker’s entitlements. The last wage received is the reference. For piece-rate workers, the wage is the average earned over the actual working days in the last three months. Cash and in-kind benefits are valued by averaging what the worker received over the last twelve months, or over the period actually served if it was less than a year.
Pay During Closure or Stoppage
Article 61 deals with situations where work stops for reasons outside the workers’ control. The employer must keep paying wages during a closure if the employer deliberately closed the establishment to force workers to accept its demands. The employer must also pay wages for the whole period during which the establishment is fully or partly halted for any other reason that the workers had no part in, as long as the employer wishes to keep them in employment. An employer cannot therefore keep workers on the books while refusing to pay them during a stoppage.
Article 63 requires the minister to issue a decision setting the minimum wage at least once every five years, according to the nature of professions and industries and taking inflation into account. The applicable figure is set by ministerial decision rather than in the law itself.
What to Do If Your Salary Is Late, Cut or Deducted
- Keep records: the contract, payslips, bank statements showing transfer dates and amounts, and any written messages about pay.
- Raise it in writing: a short written request to the employer creates evidence of the date the problem was raised.
- File a labour complaint: labour disputes usually begin with a complaint to the labour department of the Public Authority for Manpower, which attempts an amicable settlement before the matter is referred to court.
- Go to court if needed: if settlement fails, the dispute is referred to the labour court, where the worker can claim unpaid wages, unlawful deductions and pay differences.
For a broader overview of workers’ rights, see our guide to Kuwaiti labour law rights and obligations, and for extra hours see overtime pay and working hours.
Frequently Asked Questions
How late can my employer pay my salary in Kuwait?
Monthly-paid workers must be paid at least once a month, and payment may not be delayed beyond the seventh day from the date the wage falls due.
Can my employer deduct a company loan from my salary?
Yes, but no more than 10 per cent of the wage, and without interest. All attachments and deductions together may not exceed 25 per cent of the wage.
Can my employer reduce my salary because of losses?
No. The Labour Law prohibits reducing a worker’s wage during employment for any reason.
Are regular allowances part of my wage?
Yes. Allowances, bonuses and other cash benefits received on a regular, periodic basis are included in the wage under Article 55.
This article provides general legal information about Kuwaiti law and does not replace advice on the facts of a specific case. If you have a dispute over unpaid wages, deductions or a pay cut, you can book a consultation with the office of lawyer Meshari Obaid Alenezi or call +965 2220 4490.
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