Kuwait's Civil Service Commission (CSC) has formally requested the Ministry of Finance to conduct a comprehensive financial study evaluating the budgetary implications of recent amendments to employee cash allowances and leave entitlements. These modifications, previously approved by the Civil Service Council, aim to reduce government financial liabilities and improve fiscal efficiency.

The study will assess the projected cost savings of each amendment separately to ensure they align with Kuwait’s financial strategy.

Key Amendments and Financial Implications

1. Reduction in Cash Allowance for Service Termination

• Previously, employees were entitled to receive a cash allowance for up to 180 days of unused leave upon termination.
• The new amendment caps this benefit at two years’ worth of leave balance instead.
• The financial study will analyze expected savings resulting from this reduction.

2. Mandatory Use of Annual Leave

• Employees are now required to take at least 15 days of periodic leave annually.
• Unused leave from this quota will be automatically deducted from their balance.
• The financial assessment will determine the impact of this change on government leave expenditures.

3. Reduction in Maximum Leave Accumulation

• The permissible accumulation of unused periodic leave has been reduced from five years to two years.
• Any unused leave beyond this limit will be forfeited.
• The study will estimate the cost reduction resulting from this measure.

4. Elimination of Cash Allowance for Unused Leave During Service

• Previously, employees could claim a cash allowance for accumulated leave once every 10 years.
• The new amendment removes this entitlement entirely.
• The Ministry of Finance will assess the long-term budget impact of this cancellation.

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The Civil Service Bureau confirmed in an official letter dated February 16 that this financial study is a preliminary step before the amendments are formally resubmitted to the Civil Service Council for final approval. The results will directly shape the final decree governing leave policies and cash allowances.

The Bureau emphasized that conducting this study is essential to ensuring financial sustainability while maintaining fair public sector employment policies.

The General Secretariat of the Council of Ministers has directed the Legal Affairs Committee to reassess the amendments before full implementation. As part of this process, the Civil Service Bureau, Ministry of Finance, and Fatwa and Legislation Department will collaborate to develop a comprehensive legislative proposal incorporating recommendations from the review committee.

These amendments were first approved in Civil Service Council Meeting No. 12 (2024) on October 24, 2024. However, their full implementation depends on the outcome of the financial study, which will determine their economic viability.

This development signals a major shift in Kuwait’s public sector employment policies, reinforcing the government’s commitment to budget efficiency while maintaining equitable labor standards.