In a significant labour market reform, Kuwait has officially ended longstanding fee exemptions on work visa transfers. As of June 2025, all eligible sectors must now pay a flat fee of KD150 for every work permit transfer, marking a major shift in how the country manages foreign labour.
The change, announced through Ministerial Resolution No. 4 of 2025, was issued by First Deputy Prime Minister and Interior Minister Sheikh Fahd Al Youssef on Thursday. The move aims to standardise visa fees and enhance oversight in Kuwait’s employment sector.
Understanding Work Permit Transfer
A work permit transfer means switching from one employer to another while staying in the same country. It allows foreign workers to continue working legally without leaving the country, but usually requires government approval and a new permit.
Previous Rules: Who Was Exempt and Why It Mattered
Until now, certain sectors in Kuwait were exempt from paying work permit transfer fees under Article 2 of the 2024 regulations. These exemptions were designed to support key industries and organisations by reducing operational costs tied to foreign labour.
The exemptions covered:
- Government-owned companies
- Hospitals, clinics, and MOH-licensed health centres
- Private universities and schools
- Foreign investors approved by the Investment Promotion Authority
- Sports clubs and federations
- Public benefit associations, charities, endowments, and unions
- Licensed agricultural, industrial, and commercial enterprises
- Small-scale industries and investment properties
This system allowed these sectors to hire and transfer foreign workers without incurring additional costs, giving them a financial edge while filling skill shortages.
What’s Changing in 2025?
With the repeal of Article 2, every work permit transfer will now attract a KD150 fee, regardless of the sector or employer type. This uniform charge applies to:
- All private and public sector organisations
- Healthcare and education providers
- Accredited investors and industrial operations
- Agricultural and small-scale enterprises
- Charitable and labour-related institutions
The resolution also eliminates the requirement for a one-year impact study that had been mandated in 2024, allowing for immediate and direct implementation without further review by the Public Authority for Manpower’s Board of Directors.
Impact on Foreign Workers and Employers
This reform is expected to have broad consequences for both foreign workers and the businesses that employ them:
1. Higher hiring costs: Employers will now have to budget for the KD150 fee per worker, which may reduce the number of foreign workers hired or transferred.
2. Reduced sector-specific advantages: Industries that previously relied on waived fees, like healthcare and education, may find it harder to maintain staffing levels without raising costs.
3. Increased visa standardisation: For foreign workers, the new policy ensures a more transparent and predictable visa system, but may also limit job mobility due to increased transfer expenses.
Why Kuwait Is Making This Move
The Ministry of Interior’s decision is part of a broader strategy to reform Kuwait’s labour market. By removing fee exemptions, the government aims to:
- Promote fairness in the treatment of all sectors
- Enhance financial accountability for work visa issuance
- Encourage more efficient labour planning and reduce the misuse of manpower permits
This comes at a time when several Gulf nations are reviewing their immigration frameworks to balance economic needs with national employment priorities.
Final Thoughts
For foreign workers in Kuwait and those planning to move there for employment, this rule change marks a new era of uniform labour regulations. While the move adds financial strain for some employers, it also streamlines visa procedures and sets the stage for a more accountable work permit system.
Travellers and expatriates should stay updated on policy shifts like this to better understand their rights and obligations under Kuwait’s changing visa regime.
