The latest public budget report for the 2025/2026 fiscal year has revealed a substantial increase of KD 33.905 million in estimated end-of-service compensation for employees working in Kuwait's ministries and government departments. This marks a notable rise compared to KD 219.794 million allocated for the current fiscal year and KD 185.889 million for the previous 2024/2025 fiscal year.

The compensation is categorized under “social allowances” in the state’s expenditure and appropriation plan. The budget divides the allocations as follows:

• KD 187.178 million for Kuwaiti employees
• KD 32.624 million for non-Kuwaiti (expatriate) employees

This distribution highlights the government’s ongoing commitment to financially support the public sector workforce, recognizing the contributions of both local citizens and foreign professionals.

This year’s increase may reflect anticipated retirements, staff restructuring, or new policies aimed at enhancing employee benefits. Kuwait has historically allocated a significant portion of its public spending to wages and social benefits, and the trend continues in the upcoming fiscal year.

Relatedly, Kuwait's efforts to streamline government spending and enhance service delivery have also been visible in recent administrative decisions. The Civil Service Commission’s new employment nomination strategies are part of broader structural reforms aimed at efficient workforce management.

The rise in end-of-service payments may slightly increase recurrent public expenditure, yet it also ensures employee satisfaction and smoother transitions during workforce changes. Financial analysts suggest such spending aligns with Kuwait’s broader social welfare goals.

With the 2025/2026 fiscal plan, Kuwait reaffirms its commitment to public sector support through increased end-of-service benefits. The allocation not only addresses the growing needs of the aging workforce but also aligns with the country’s long-term economic and social stability objectives.