KUWAIT CITY, Dec 21 — The Central Statistical Bureau has revealed that Kuwait employs approximately 757,000 domestic workers, each earning an average monthly salary of KD 120. This translates to a total payroll of around KD 90 million per month, or KD 1.1 billion annually, underscoring the significant financial role this sector plays in the national economy.
Despite directives issued over a year ago by the Central Bank of Kuwait urging financial institutions to facilitate account openings for low-income earners, tradespeople, and domestic workers, implementation remains limited. This slow progress has drawn renewed attention amid rising labor complaints and salary disputes, highlighting the urgent need to integrate domestic workers into the formal banking system.
In response, the Public Authority for Manpower (PAM), acting on instructions from the Cabinet, has mandated that employers deposit worker salaries directly into commercial banks. Compliance will be linked to employee file status, with penalties imposed on companies that fail to adhere to wage-protection rules.
Domestic workers represent approximately 25.3 percent of Kuwait’s total labor market, making them one of the country’s most substantial and economically vital workforce segments. Integrating them into the banking system is seen as critical to enhancing transparency, reducing risks linked to cash transactions, and promoting financial inclusion.
The Central Bank has called on banks to adopt flexible account-opening procedures, simplify documentation requirements, and ensure access to multilingual services. It also urged the development of annual programs to monitor financial inclusion efforts, educate workers on account management, and raise awareness of fraud prevention.
Khaled Al-Dakhnan, head of the Kuwait Union of Domestic Labor Offices, welcomed the move, describing salary deposits into bank accounts as a positive step that protects the rights of both workers and employers. He added that wage transfers through the banking system provide clear proof of payment and help prevent recurring disputes, while also supporting Kuwait’s commitment to labor and human rights.
As the government intensifies efforts to formalize financial access for this large workforce, the initiative is expected to play a key role in strengthening salary protection, reducing exploitation, and promoting greater transparency across the domestic labor sector.
Source Arabtimes Kuwait
