With the approval of the sponsor, SME employee transfer was reduced to one year

KUWAIT CITY, November 24: There is a wave of anticipation in Kuwait about a vital decision that could reshape the lives of expatriates aged 60 and above who do not have a university degree. The possibility of canceling compulsory health insurance fees for this group gained attention after the Supreme Court approved a decision made in March 2024, annulling Administrative Order No. 27 of 2021. This decision, which previously regulated work permit regulations, was deemed invalid. This decision made by the First Instance Court marks an important period in legal terms.

While the country awaits official implementation, the Public Authority for Civil Information (PACI) released statistics stating that the number of expatriates in this specific category as of the end of June 2024 was 123,235, with 8,956 cases unspecified. These figures highlight a large demographic group affected by the decision. Meanwhile, another important development took place in the small and medium-sized enterprises (SME) sector.

The Public Manpower Authority announced that the minimum period for worker transfer under SME projects has been reduced from three years to just one year, subject to sponsor approval. However, the sources clarified an important restriction: Employees in SMEs will not be able to transfer to larger private sector companies.

This policy adjustment was attributed to operational challenges faced by many SME projects, including disruptions in startups and difficulties in maintaining operations. The reduction in transfer time aims to provide flexibility in the SME ecosystem and to make better use of the workforce without compromising the stability of the sector. PACI’s comprehensive report sheds light on the broader composition of Kuwait’s foreign workforce, revealing striking disparity in educational qualifications: The report puts the number of University Graduates at 143,488; of these, only 6,561 had advanced degrees (Master’s or PhD); illiterate workers, 82,040; Basic Literacy (Reading and Writing): 954,747; Primary education, 112,933; Secondary education 654,738; High School Graduates: 246,851; Diploma Holders: 79,902 and Unspecified Education Levels: 707,931. Overall, out of the total expatriate population of 3.36 million, 2.9 million expatriates aged 20 and over did not have university qualifications.

These intertwined developments highlight Kuwait’s effort to strike a balance between economic needs, labor market optimization, and social welfare. The potential cancellation of health insurance charges will provide financial relief to older people living abroad, while revised SME workforce rules aim to address the operational challenges of small businesses. The challenge for policymakers is to implement these changes while maintaining fairness and efficiency across sectors. As discussions continue, many expats and businesses await clear directives, hoping for reforms that prioritize inclusion, economic growth and stability in the rapidly evolving labor market.

PACI’s comprehensive report reveals a stark educational divide among Kuwait’s foreign workforce:

1. Total University Graduates: 143,488 • Advanced Degrees (Master’s or PhD): 6,561

2. Number of Illiterate Workers: 82,040

3. Basic Literacy (Reading and Writing): 954,747 4. Primary Education Owners: 112,933

5. Secondary Education Owners: 654,738

6. High School Graduates: 246,851

7. Diploma Holders: 79,902

8. Unspecified Education Levels: 707,931 9.

Total Foreign Population: 3.36 million
• Foreigners aged 20 and over without university qualifications: 2.9 million

Written by Najeh Bilal and Fares Al-Abdan
Arab Times/Al-Seyassah Staff