Labour Law / 4 min read

Salary Protection: 8 Rules You Need to Know

Pay dates, bank transfers, deduction limits, protection against salary cuts, and pay during closure, under Articles 55 to 62.

  1. What is included in salary? Basic pay + fixed allowances and bonuses (Art. 55).
  2. Timing: Monthly, and no later than the 7th day (Art. 56).
  3. Bank: Transfer to employees' bank accounts (Art. 57).
  4. No cuts: Salary cannot be reduced during the contract (Art. 28).
  5. No category change: A monthly-paid employee cannot be moved to another wage category without their written consent (Art. 58).
  6. Deduction limits: 10% for loans and 25% overall (Art. 59).
  7. No forced purchases: The employee cannot be required to buy from a particular shop (Art. 60).
  8. Closure: If you close for a reason unrelated to the employee, pay continues (Art. 61).

All calculations use the last salary (Art. 62), and the private-sector minimum wage is KD 75 (Order 14/2017).

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Frequently asked questions

Can I reduce salary if business slows down?

No (Art. 28).

How much can I deduct for a loan?

10% (Art. 59).

Are allowances included in salary?

Fixed allowances are (Art. 55).

Sources

  1. PAM Labour Law page
  2. English Kuwait Labour Law text
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