Amending the 60 age decision is inevitable

Kuwait City, Sep 27: The advisory team of the Minister of Trade and Industry has developed 4 scenarios to solve the humanitarian and economic problem created by the decision to ban the issuance of a new work permit in the country for expatriate workers aged 60 years and above holding high school diplomas and below.

Government sources revealed to Al-Qabas that the Minister of Commerce and Industry, Dr. Abdullah Al-Salman, submitted the recommendations of the advisory team to the Council of Ministers, stressing that the minister is pressing to resolve the file because of its serious economic and humanitarian damages, with an absolute rejection of the decision to pay fees of 2000 dinars, and that He supports two directions for resolving the “sixty file.” The first is imposing health insurance with the usual fees, and the other is a government fee of 500 dinars in addition to a health insurance policy of no less than 500 dinars, stressing that the decision of the sixty will be resolved, and it will inevitably be amended.

The study of the government advisory team concluded that the decision affects the labor market environment in the private sector, does not address its imbalances, and is directly related to relieving pressure on the country’s health services system, rather than a measure that would modify the demographic structure.

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The study showed that all jobs occupied by this segment are handicraft professions that are not attractive to citizens and that 57% of these targeted workers have an average wage of less than 300 dinars, in addition to the fact that the targeted age group is the least committed crime in the country.

She stated that the proposal to impose a fee of 2000 dinars has repercussions, including an increase in the prices of services provided by this category to consumers by 54.5%, and the encouragement of “singles” concentration in residential areas, pointing out that the pressure and burden on the health cost in the state can be converted into a benefit for the economy through the application of insurance. Health insurance, which will revive the insurance market, private hospitals, and pharmacies.

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Here are the full details

The advisory team of the Minister of Commerce and Industry has developed 4 scenarios to solve the humanitarian and economic problem created by the Public Authority for Manpower Resolution 520 of 2020, which prohibits the issuance of a new work permit in the country for expatriate workers who have reached 60 years of age and above, who hold high school certificates and above. Without it and equivalent certificates.

Government sources revealed that the decision of the sixties will be resolved and will inevitably be amended, pointing out that the Minister of Trade and Industry, Dr. Abdullah Al-Salman, raised the recommendations of the advisory team to the Council of Ministers, stressing that the minister is pressing towards resolving the file because of its serious economic and humanitarian damage, with His absolute rejection of the decision to pay a fee of 2000 dinars.

She indicated that the minister supports two directions for resolving the “sixty file”, the first: imposing health insurance with the usual fees, and the other: a government fee of 500 dinars, in addition to a health insurance policy of no less than 500 dinars.

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Advisory Report

The government advisory team stated in its report – a copy of which was obtained by Al-Qabas – that the decision of the 2,000 dinars to be paid by an expatriate in his sixties who holds a high school diploma or less has drawbacks, including:

  1. The decision affects the labor market environment in the private sector and does not address its imbalances.
  2. It is directly related to relieving pressure on the health services system in the country, rather than a measure that would modify the demographic structure.
  3. There is a need to study the various dimensions of this resolution before proceeding with its issuance.

The government advisory team confirmed that all jobs occupied by this segment are handcrafted professions that are not attractive to Kuwaiti citizens, indicating that 57% of these targeted workers have an average wage of fewer than 300 dinars and that 73% of the remaining percentage of those workers have an average wage of less than 400 Dinar.

The study revealed the most important thing, that the age group targeted in the law of sixty is the least responsible for crimes in the country, as the “middle” age group of expatriate workers is the one who has a security record of committing crimes of theft, fraud, and murder.

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Repercussions of the 2000 dinars decision

The advisory team refuted the repercussions of the 2000 dinars decision in the event of its implementation, as follows:

  1. Poor financial ability of the target group to pay the financial fee in general.
  2. The category that can pay the finance fee is limited to the professional category with experience and working in major companies.
  3. The imposition of a financial fee means an increase in the cost of living for the worker (in the event of renewal) or the replacement of this labor with young workers (in the event of non-renewal), which will encourage the concentration of “bachelors” in residential areas and abandonment of the family to reduce the financial cost, and this will constitute a drain and greater pressure on services. and utilities, and raises the pace of population growth for expatriate workers and does not reduce it!
  4. Imposing any financial fee on the renewal of expatriate workers will increase the possibility of transferring it to the consumer.
  5. The pressure and burden on the health cost in the country can be converted into a benefit for the economy through the application of health insurance, which will revive the insurance market, private hospitals, and pharmacies.

Final recommendations

The final recommendations of the government advisory team according to the priority left to the selection of the Council of Ministers:

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First – The priority of ensuring the collection of the financial return:

  • The best scenarios: the third scenario 500 dinars or the second scenario 1000 dinars.

Worst case scenario: The first scenario is 2000 dinars; Because it is considered expensive for the worker and he will not be able to carry out the renewal, and therefore his collection will not be achieved.

Second – the priority of economic cost over the consumer:

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  • The best scenario is the fourth only health insurance, then the third scenario is 500 dinars.

Worst case scenario: First scenario: 2000 dinars; Because if the worker renews his residence and pays the fee, he will transfer it completely to the consumer through an increase in the prices of his services by about 54.5%.

Third: The priority of the social cost through the phenomenon of the spread of singles and crimes:

  • The best scenarios, the fourth scenario only, health insurance, then the third scenario 500 dinars.
  • Worst case scenario, first scenario 2000 dinars; Because if the worker renews his residency and pays the fee, he will abandon his family and remain in the single community, and in the event of non-renewal, he will be replaced by another expatriate worker, which increases the spread of the phenomenon of singles in the country.

Fourth – The priority of reducing pressure on the health system:

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  • All scenarios in the event of the implementation of compulsory health insurance will increase the chances of relieving pressure on the health infrastructure system in the government sector.

Negatives for the citizen and the government

First: The effect of applying the 2000 dinars fee in case the employer is a citizen:

  1. High operating and production costs.
  2. Raising the price of services and goods provided to the consumer to compensate for the cost.
  3. Mainly affected individuals.

Second: If the sponsor is a government contract or from the black market:

  1. Download the worker drawing.
  2. The worker raises his wages to compensate for the difference.
  3. The aggrieved private and government sector projects.

Trade union votes against workers!

Informed sources told Al-Qabas that one of the strange ironies in the vote of the Board of Directors of the Manpower Authority to raise the fees for renewing the “sixty” residency permits is that a “labor union” voted to raise the exorbitant fees on workers to reach 2000 dinars annually!

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She added that the vote of a trade union against other workers led to a large number of them being cut off from their livelihoods, and huge sums of money were charged to them. As a result, a number of them ended their long lives in Kuwait and traveled. How does a worker stand against a worker when he is supposed to represent all workers from a professional and humanitarian point of view, not according to nationality.

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