Arab News
Kuwait times,
Mon, Oct 06, 2025 | Rabi al-Thani 14, 1447
Labor deposits further eased; Afya abolished
Kuwait:
The Public Authority of Manpower on Sunday further
cancelled more financial guarantees taken from employers as security deposits to
ensure the rights of expat workers in case of labor disputes. Kuwaiti employers
were required to pay a security deposit of KD 250 per expat worker for several
types of workers, especially those in menial jobs, as insurance for their
rights. The deposit was managed by the manpower authority, which was authorized
to withdraw from it to pay workers.
Since then, the security deposit has been
cancelled for several types of workers, but remained mostly on employees working
on government contracts, like cleaning. The authority said in a statement on
Sunday that the security deposit for the activities of cleaning, security
(guards) and handling, as well as security deposits for absentee workers, have
been cancelled.
The cancellation also includes workers who were
handed a final court verdict, in addition to commercial licenses of citizens of
Gulf Cooperation
Council (GCC) states. The financial deposits
decision was issued at a time when a large number of expat workers were denied
payment of salaries or their wages were delayed for several months, leading to
labor strikes.
Meanwhile, the Kuwaiti government on Sunday
officially abolished the lucrative Afya health insurance scheme for tens of
thousands of retired Kuwaiti citizens that allowed them to seek medical care at
private health institutions. An Amiri decree was published in the official
gazette Kuwait Al-Youm on Sunday, meaning the scheme was officially cancelled.
The government suspended the scheme in Oct 2024
for a year to review the entire system and its cost amid claims that the scheme
which covered more than 150,000 retirees was too expensive and cost several
hundred million dinars. The decree’s explanatory note affirmed on Sunday that
the scheme was too costly, especially as the services can be offered by
government health institutions.