The Public Authority for Manpower has introduced an electronic linkage mechanism with the Central Bank of Kuwait’s Wage Protection System, according to a statement from the authority. Companies must now transfer monthly salaries for at least 90 percent of their total registered workforce in addition to ensuring payment for all registered workers in the most recent month. Non-compliance with either condition will trigger limitations on multiple administrative services the authority provides.
According to the Public Authority for Manpower, affected services include issuance of new work permits and authorizations excluding renewals, registration of government contracts, assessment of labor requirements, issuance of certificates for official approvals and tenders, and registration of company-owned vehicles. The authority added that companies with valid reasons for deficiencies may submit explanations and supporting documents through its automated system for staff review and approval. This framework aims to strengthen oversight of wage disbursements across the private sector.
The electronic linkage process starts with the employer submitting the salary file to their bank, the Public Authority for Manpower explained in its announcement. Banks then facilitate the transfer while the integrated system enables real-time verification of compliance with wage rules. The development follows the Central Bank of Kuwait’s launch of the broader Kuwait Wage Payment System in late September 2026 to create a unified national platform for private-sector wage processing.
Central Bank of Kuwait information describes the Kuwait Wage Payment System as a tool to boost transparency, efficiency and speed in salary transfers while allowing regulators to detect non-compliance at an early stage. The platform divides responsibilities so that the Public Authority for Manpower handles supervision of employer adherence to wage protection requirements. It adheres to international standards including ISO 20022 for electronic financial messaging.
Public Authority for Manpower data presented at a recent meeting with company representatives showed wage compliance climbing to 75.6 percent in July 2026, up from 38.7 percent in the same month a year earlier. The authority suspended 8,849 company files for unpaid wages through the end of June 2026, equivalent to 18.3 percent of those with five or more registered workers. Requests submitted through the wage protection system jumped 195.6 percent in the first nine months of 2026 compared with the prior year, with nearly all approved.
The acting deputy director general for human resources and finance at the Public Authority for Manpower reported that automation of the authority’s processes has surpassed 80 percent. Average completion time for transactions on its platforms now stands at less than five minutes, according to the same official. These steps form part of a sustained push toward full digital integration in labor market regulation and worker protections.
