Kuwait min wage plan three times world's highest

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Kuwaiti MPs have proposed raising the minimum wage for nationals to KWD1,500 (US$5,300) per month as part of a raft of changes that would boost the income of residents to among the best in the world.

The proposed minimum wage would be by far the highest in the world – three times the present best in Luxembourg, according to a world ranking by international accounting firm PKF International, based on International Labour Organisation data.

The wage also would increase annually in line with inflation, Kuwait Times reported.

The MPs also want to increase the housing loan eligibility to KWD100,00 (US$353,540) a year, while also lifting the cap on how much women can borrow from KWD45,000 to KWD100,000.

Kuwaiti employees also would receive a higher allowance per child, while retirees could claim KWD100 per child per month.

And unemployed Kuwaiti women older than 55 years should receive a minimum KWD500 monthly allowance, the proposal, put forward by MPs Faisal Al-Kandari, Hamad Al-Harshani, Nasser Al-Meri, and Bader Al-Bethali, says.

The MPs also called for Non-Government Organisations (NGOs) and the public sector to be banned from employing foreigners, except for cleaning and loading jobs.

Such a move would help eradicate unemployment and increase Kuwaiti families’ income, the MPs said.

Parliament is yet to vote on the proposal.

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Posted by: SYR

What a stupid suggestion by the idiots who unfortunately are members of the parliament. Kuwaitis don't need more money nor do we need another reason to keep Kuwaitis lazy. The parliament members should focus on more important/urgent issues such as healthcare, education, competitiveness of the market place, and the environment amongst other stuff.

Posted by: Thamir Ghaslan

Jealous and negative comments in 3... 2... 1...

Expats would be singing a different tune if they would easily be given citizenship.

Posted by: Qatari

Spot on.

Posted by: Telcoguy

If stating the obvious (the inflation tsunami of Matrix plus Doug's spot on comments on Kuwaitization of the workforce) is being "Jealous and negative" well yes I guess we are

I am really looking forward to your usual deep, fact-based analysis explaining how this is anything more than a crowd pleaser measure by someone who neither understands the implications now will need to bear the cost

Posted by: Telcoguy

More to the point:
From http://www.arabtimesonline.com/NewsDetails/tabid/96/smid/414/ArticleID/170903/reftab/96/Default.aspx

Head of the parliamentary budgets committee MP Adnan Abdulsamad described the budget as ?crazy? and said the price for oil needed to balance the budget is $85-90 a barrel.
?Ten years ago, we needed oil price to be at $18 a barrel to balance the budget, but now if oil slips below $85-90, we will be forced to withdraw from the assets to pay for wages,? Abdulsamad told parliament.

So now Thamir, please explain us how this additional spending will work. No rush, take your time, plenty of numbers to crunch

Posted by: you you fooling

You could not pay me all the money in the world, unless I could get the privileges and not have to live there. (like most Kuwaitis do come to think of it)
Going to the avenues mall every night and swimming in dirty sea isn't the best life.
Even the Regency hotel I stayed at after a 100 000 million dollar refurbishment was empty.
Al Hamra Tower tallest sculpted concrete building in the world, 10% occupancy (I should know I produced the launch brochure for it)
The Business district is half empty as no outside firms want to work in Kuwait.
Ever wondered why arrivals at the airport on a Thursday is empty and departures is packed!!??
Keep your perks I would rather have a good quality of life(thats not money by the way!!).

Posted by: Matrix

All Expats in Kuwait - expect massive increase in all charges - A Price and Inflation led Tsunami is coming your way if this gets approved as the locals would have all the money while u expats will be derived of it. What will happen is to sustain this every sector will push up the charges to pay for the increased wages. All foreign high value brands are in for good times!

Posted by: mumeen

This Minimum is not for the 'residents', but for the Nationals.

Posted by: Andy

This will help retail sales for Hermes and Porsche in Kuwait.

Posted by: Telcoguy

@Andy it is and it is not. It was certainly for my client, and indirectly for us because they had a hard time isolating the effect and providing an "Arab-spring free" P&L and needed our help; that opened the door

But if you stop to think about the long-term of this region, this summarizes the whole mindset, a huge "carpe diem". I guess that this is slightly better than going on a shopping spree with a credit card or a loan... but still. Maybe i have got too old and too grumpy, but when I was younger people had more self control and did not spend money so freely

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