The General Authority for Manpower issued an awareness notice Thursday underscoring strict legal limits on salary deductions to protect worker earnings and prevent unauthorized reductions in agreed pay. According to the authority the provisions draw directly from Articles 28 and 59 of Private Sector Labour Law No. 6 of 2010 which remains in force more than 15 years after its publication in the official gazette. The authority stressed that employers cannot lower the contracted wage at any point during its term while any financial deductions must adhere to the specified ceilings to maintain stable labor relations across the private sector.
Article 59(a) specifically caps deductions for settling debts or loans owed to an employer at 10 percent of the worker’s wage and prohibits any interest charges on those amounts the authority reported. In parallel Article 59(b) sets an overall 25 percent maximum on all forms of wage retention assignment or deduction to cover alimony food clothing and other obligations including those due to the employer. The authority’s notice highlighted that alimony debts take priority whenever multiple claims coincide ensuring family support obligations are met first before other deductions proceed.
Kuwait’s private sector workforce includes a substantial share of the more than three million expatriates tracked by Public Authority for Civil Information statistics with many employed under contracts governed by these exact wage protection rules. The authority’s Thursday reminder arrives amid ongoing efforts to educate both employers and employees about their rights and obligations under the 2010 law which was designed to shield vulnerable workers from excessive financial burdens. Enforcement of these percentages helps prevent situations where deductions could leave employees with insufficient income for basic needs the authority indicated in its awareness material.
Central Bank of Kuwait instructions on consumer lending have long required banks to consider net salary after such permitted deductions when assessing borrowing capacity according to regulatory guidelines updated through 2025. This coordination between labor protections and financial oversight ensures that loan approvals align with actual take-home pay rather than gross figures. The manpower authority’s clarification therefore supports broader financial stability by reinforcing the legal framework that governs salary attachments and assignments.
The 2010 labor law’s deduction limits have formed a consistent pillar of worker protections even as subsequent circulars from the Central Bank adjusted installment ratios for new loans to a maximum of 40 percent of net salary in most cases. By restating these foundational rules the General Authority for Manpower aims to reduce disputes and promote compliance across thousands of private establishments operating in the country. Employers found violating the caps face potential regulatory action under the same legal framework the authority noted.
Implementation of the 10 percent and 25 percent thresholds requires clear documentation of all deductions with alimony claims processed ahead of commercial debts when totals approach the overall ceiling. The authority urged both workers and employers to consult official contract terms and seek guidance from its offices if uncertainties arise about permissible deductions. Such proactive awareness initiatives form part of the body’s mandate to uphold fair labor practices and minimize financial exploitation in the workplace.
