By Courtney Trenwith
Lawmakers propose raising minimum wage to US$5,300 in raft of changes to boost income
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.
The first generation built the wealth
The second generation managed the wealth.
The third generation squandered the wealth
Just as my generation spent the money and borrowed, leaving the debts to our children, such will also pass in Kuwait.
This should help Kuwaitization plans...
Oops- I mean, of course, PRIVATE sector!
In other words, the Kuwaiti government has simply given up trying to encourage the public sector to hire nationals. Here's hoping they've got enough oil revenue...otherwise, where will the money come from?
they are destroying what little is left of any work ethic among young Kuwaiti's... how will they compete in the real world... the system is geared towards...entitlement, greed, and more greed...the leadership needs to really think this one through...what kind of value system will this society have in the future....
This will help retail sales for Hermes and Porsche in Kuwait.
This Minimum is not for the 'residents', but for the Nationals.
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!
Jealous and negative comments in 3... 2... 1...
Expats would be singing a different tune if they would easily be given citizenship.
@Telco, this is actually great news if you ask me because they like to spend and retailers love people who love to spend as this extra cash will trickle down to others. There are currently 7 flights a day between Dubai and Kuwait of which are supposedly all full too so some of this extra cash will trickle down to retailers in Dubai. Basically the ruler does not want them uprising with the rest of the Arab Spring of which he is basically telling them here is some extra cash. Go enjoy and keep your mouths shut. If I were them I would take it and enjoy. There are not too many countries out there that share government wealth with their people. Other countries out there want 30-50% of your income while they collect zero taxes from their own people.