A new report warns that approval of the amendment to the National Labor Law, to give employees (Kuwaitis and expatriates) retroactive remuneration and 35 days of annual leave, would severely impact the functioning of private sector companies.

The report said, “the general cost of the implementation of the law under the amended law would be KD948 million for the period from 2010 to the end of 2018.”

A sizable chunk of this money, around KD908 million is projected to go to compensate expatriate workers, while only KD40 million is likely to be earmarked for Kuwaitis. The report questioned how the economy would cope if this large amount of money left the country as remittances.

The government’s calculation of the beneficiaries of money to be spent in the event of application of the law is 1.67 million workers (expatriates and Kuwaitis) as per the Law 6 of 2010. The number of Kuwaitis who will benefit is 71,000 or only 4 percent of all private sector employees.

The average salary of the worker in private sector is KD327 per month or KD12.5 per day. Calculate five days retroactively for workers from 2010 to the end of 2018, and you get a rough idea of the amount of money required.

 

 


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