Bill could allow upto 50% in lockdown pay cut and 30% on paid leave

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Bill could allow upto 50% in lockdown pay cut and 30% on paid leave

Bill could allow upto 50% in lockdown pay cut and 30% on paid leave

Committee MP Saadoun Hammad confirmed that the committee approved the bill about dealing with the economic impact of coronavirus on the private sector.

He disclosed the bill allows the employer to reach an agreement with some or all employees to reduce their salaries during the lockdown period by 50 percent maximum; but not lower than the minimum salary in Kuwait, while the actual work hours are taken into consideration.

The bill also allows the employer to reach an agreement with some or all employees to go on leave with pay which is equivalent to 30 percent of the salary, but not lower than the minimum salary in Kuwait.

It stipulates that the vacation or salary reduction period during lockdown is considered part of the service period with full salary in the calculation of the employees’ indemnity.

The bill mandates the employer to inform the Ministry of Social Affairs about the abovementioned agreements with the employees. The bill includes an article on the protection of Kuwaitis working in the private sector, stating that the labor subsidy granted to the employee should be increased by the same amount deducted from the salary during lockdown.

According to the bill, the Public Institution for Social Security (PIFSS) should continue paying the unemployment allowance for six months. Hammad added the bill, once approved, will be implemented retroactively starting from March 12, 2020.

He clarified the grace period for the workers to file complaints is not affected by the lockdown period, reiterating that the lockdown period is not counted.