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    Bahrain Launches Wage Protection System

    The kingdom of Bahrain has officially put into effect the phased system that aims to protect the wages of private-sector employees and limit labor disputes.

    According to the country’s labor regulator, the first stage of the system went into effect as of May with a wide response from the targeted employers.

    Bahrain Launches Wage Protection System

    Wage Protection System Now in Effect in Bahrain

    The current phase targets employers of 500 workers or more. Around 92 per cent of the employers covered by the first phase of the scheme, unveiled in March, have complied, according to Bahrain’s Labour Market Regulatory Authority (LMRA), the Gulf News reported.

    The Authority has been keen to facilitate all procedures related to joining this system,” LMRA Executive Chairman Jamal Abdulaziz said.

    With this, he pointed out that the employer has to open accounts for all his registered employees, citizens and expatriates alike, at a commercial bank or a financial corporation licensed by the central bank without having to show up in person at LMRA.

    Nearly 92 per cent of the employers targeted in the first phase have partially joined the wage protection system, i.e. they paid the majority of labour wages through this system. The LMRA keeps contacting the employers directly to emphasize the full commitment to pay wages of their registered wages,” he added.

    In relation to this, employers are given a six-month grace period for implementation for follow-up and eliminating any difficulties in registering through the same, according to the official.

    Explaining the oversight process, Abdulaziz shared: “Commitment to this system ensures transferring workers’ wages into their bank accounts regularly and as scheduled, thus consolidating transparency and oversight process. It supports expediting settlement of any wage-related dispute.”

    Meanwhile, the second phase of the scheme takes effect as of September 1, covering employers of 50 up to 449 workers, while the third covering employers of one to 49 workers, will come into effect on January 1 next year.

    In line with this, the system applies on an optional basis to domestic workers’ employers. The arrangement is hoped to curb illegal labour in Bahrain.

    According to the announcement, the system will also be beneficial to employers as it helps maintain a stable professional environment and business growth.

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