Kuwait introduces new $830 fee for companies employing ‘excess’ foreigners

Kuwait’s Ministry of Social Affairs and Labour has reportedly issued a ministerial decision that will see companies pay an additional fee for employing expats.

The levy will be KD250 ($830) per work permit for employing ‘excess’ expats, according to Kuwait Times.

It will apply to foreign hires at companies should their expat headcount exceed 50 per cent of the workforce.

This will likely mean most private sector companies in the country, where nearly nine in 10 citizens work in the public sector, have to pay extra for new hires.

Read: Unemployed Kuwaitis unwilling to join private sector

Kuwait has been increasing charges and fees for foreigners in recent months to boost government revenues.

Last month, it announced new healthcare costs for expats working in the country, while MPs have proposed introducing expat quotas and limits due to concerns of a demographic imbalance.

Read: Kuwait to introduce higher healthcare fees for foreigners

Read: Kuwait MP calls for 10-year limit for foreign workers

Foreigners are estimated to make up more than 70 per cent of the country’s 4.4 million population.

The latest measure is similar to that set to be introduced in Saudi Arabia next year where a fee of SAR300-400 ($80-$107) a month will be introduced for each foreign worker.

Read: Saudi denies increase to work permit fee for foreigners