Dirty Dinar

Since news broke out that the government was considering increasing salaries, the co-ops have raised the prices of goods. Buying the weekly groceries has been more expensive than ever before and some believe the government has no choice but to increase salaries.

The Kuwait Times reports:

Government officials recently disclosed that they had almost finalized the salary increases that would include all Kuwaiti employees in government and private sectors as well as all those who receive social aid and retired employees.

Looks like we’re going to be getting raises soon. This will probably be the last increase for a long time. Any guesses how much the increases will be for the varying sectors? Of course, my interests lie in knowing how much the private sector will be getting.

Today’s Kuwait Times featured the article below. I didn’t realize that the number of women in the private sector was so low. Is it possible that only 5% of Kuwaiti women work in the private sector? I’m proud to be one of them but that percentage seems really low! I can’t help but think this is inaccurate. I know plenty of women who own their own businesses and work in the private sector.

KUWAIT: Kuwait is in the forefront of Arab countries in view of women’s participation in labor force by 42 per cent in line with 2006 statistics, an Arab economist said here yesterday.

The percentage of Kuwaiti women’s involvement in labor force is continuously on the increase, having recorded roughly 37 percent and 42 percent in 2003 and 2006 respectively, Riyad bin Jalili, an economist at the Arab Planning Institute (API), told a symposium on women and development in the Arab world.

Most working women, who are university graduates, are concentrated in the public sector by around 95 percent, he said. In spite of the high percentage of Kuwaiti women’s participation in labor force, leading state posts are often inaccessible to them, having stood up at merely six percent in 2004, Jalili added.

Kuwaiti working women’s diversified presence in the labor market is still meager if compared to other Arab countries, he said, arguing that the upward trend of women’s education has a limited impact on their diversified involvement in the labor market. They account for 45 percent in administrative professions, 24 percent in teaching and just four percent in medicine and science.

However, divorced women were more active than married ones in terms of economic activities in 2006, he said. Joblessness among Kuwaiti females and males hit 5.2 percent and 2.7 percent respectively in 2006, he added. — KUNA

Published Date: January 23, 2008 in the Kuwait Times

Kuwait Times ran an unusually high number of articles today dealing with employment, salary hikes and labor laws in Kuwait. Or maybe I’m just more aware of them now that I’m looking into saving and investing.

Below is the article in full.

KUWAIT: A gulf of differences seperates the rights of those working the public vs private sectors in Kuwait. Issued in 1964, the labor law for the private sector requires longer hours for employees who in return receive fewer benefits.

For example, government receive about three times longer paid annual leaves and they work fewer hours and only five days a week. Private sector employees typically work six days a week, at least eight hours a day and have shorter paid holidays. Also regarding the salary increase and employees’ chances to get promoted to higher positions, these rights differ.Plans to revise the private sector labor law, however, have been halted. The Health, Social and Labor Parliament Committee announced last week that it had almost finished reviewing the draft amendments to the private sector labor law. The committee is still reviewing the two last sections of the draft which consists of 146 articles. Once the committee completes its review, the draft will be submitted to the Assembly for approval.

This draft was suggested by the Private Sector Employees Committee, the Kuwait Chamber of Commerce and Industry and some MPs. Representatives of the Ministry of Social Affairs and Labor and representatives from the Manpower and Government Restructuring Program also attended the committee meeting in order to approve suggested amendments.

The draft law, if approved, would bring positive changes for employees in the private sector. According to the committee, this law should increase the period of annual leaves and it should also set the rules for other matters such as working hours, overtime, and many other issues.

The opinions of the employees of the private sector were similar to the committee and they said the law will bring satisfaction and comfort in working in the private sector for both Kuwaitis and expats.

I think it’s a great suggestion which shows appreciation for laborers. It’s an improvement in the legal system of Kuwait and it will positively affect private employees and encourage them to work harder,” noted Ra’fat, a 31-year-old expat employee.

The new law will give advantages to employees who don’t get holidays. “The best advantage of this law is that expat employees can travel for longer holidays, like a month, without any worries. Most expat employees visit their families aboard and they want to spend more time with them,” Fatma, a 24-year-old expat employee, told the Kuwait times.

For Kuwaitis working in the private sector, this law amendment won’t make much of a difference. “The allowances we get are the same as our colleagues in the public sector. It’s true that I work for longer periods than people in the government, but my salary is much higher. Also, I get commission and bonuses unlike in the private sector. I also have a 30-day paid leave every year in my contract,” pointed out Moath, a 30-year-old Kuwaiti working in a private real estate company.

The rights given to private employees differ from one company to another. “I work six days a week, and this makes me jealous of my friends in the public sector. On the other hand, my salary is much higher so I think it’s alright if I work more. I think the new law will bring us more advantages and it will satisfy everyone,” said Mohammed, a 26-year-old Kuwaiti working in the private sector.

Business owners have different views on labor law amendments as there are those who will sustain losses due to these new amendment.

This law will definitely affect me negatively as my laborers will work 11 months instead of 11 and a half months. Furthermore, if my employee holds a key position and I really depend on him, it will negatively affect my work if he leaves for 30 days. I’m flexible with my employees to extend their vacation if it is needed, but if the new labor law states that I will be obliged to give them a 30-day paid leave, I won’t agree to giving them any extra leaves,” argued Salah, a 35-year-old car garage owner.

Published Date: January 07, 2008
By Nawara Fattahova, Staff Writer