KUWAIT: The Cabinet’s request to the Public Authority for Manpower to study the cancelation of labor support payments to Kuwaitis working in the private sector whose salaries are over KD 3,000 could leave negative repercussions on job security, especially that the amount saved by stopping the allowance would do little to cover the state’s budget deficit. Those included in the decision number 1,400 citizens out of 65,000 who receive the monthly support, Al-Qabas Arabic daily reported yesterday quoting informed sources.
The sources said citizens whose work permits in the private sector indicate their basic salary is KD 3,000 and higher are limited, and they are registered on the third and fifth chapters (employees and businessmen), adding that the average support they get totals KD 1.111 million per month or KD 13.3 million per year.
Lawyer Bassam Al-Asousi said law 19/2020 regarding support for Kuwaiti workers left the option to determine the beneficiary groups to the Cabinet through the Civil Service Commission. Asousi said the decision of the Cabinet contradicts government policies to create a suitable environment for national labor and reduce the salaries item, especially since it is the largest chapter that strains the state budget.
Public Administration Officer Dr Faisal Al-Munawer said the government is now attempting to rationalize by directly targeting the citizens’ pockets, as the plan to remove the support from a certain group of citizens whose monthly salary is KD 3,000 is not simple, as it represents around 25 percent of their income, adding this will affect their purchasing, consumption and saving powers.
The targeted groups include oil company engineers, teachers at private universities and institutions, bank officials, company board chairpersons, bank board members and company owners registered under chapter 5. The justifications of rejecting this move include affecting family budgets, not resolving the budget deficit, contradicting the policy of working in the private sector, not having job security and pushing youths towards government jobs.