Central Bank of Kuwait launches wage protection system

The Central Bank of Kuwait (CBK) has launched the Kuwait Wage Payment and Protection System (KWPS), a centralized national platform designed to process and monitor wage transfers for private-sector employees. As part of the second phase of the Kuwait National Payments System project, the system aims to enhance transparency, efficiency, and the speed of salary payments through local banks.

The KWPS is intended to protect workers' rights by allowing regulatory authorities to monitor and verify salary transfers, helping to identify non-compliance at an early stage. While the CBK will manage the technical and operational aspects of the system, the Public Authority for Manpower will supervise and monitor employer compliance with wage protection provisions.

Built to international standards, the system complies with ISO 20022 for financial messaging. This rollout follows the introduction of the Kuwait Automated Clearing System (KACH) and the Kuwait Dispute Management System (KDMS), marking a continued effort to modernize Kuwait’s financial infrastructure and support digital transformation.