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Bahrain to Implement New Wages Scheme Starting September

Bahrain to Implement Much-Delayed New Wages Scheme Starting September

Elsewhere in the world, labour and worker benefit systems are constantly being improved in order to meet international standards, because when they do, this usually means better working conditions and environment for workers regardless of their nationality, country of origin, and so on.

In the Middle East though, these systems are often consulted and based on the standards set by the Gulf Cooperation Council, under which countries such as Saudi Arabia, Qatar, Oman, Kuwait, the UAE, and Bahrain are affiliated to. The Council decides standards that affect economic activities in the region such as imposing taxes in response to the oil crisis that have affected the region in recent years.

Bahrain to Implement Much-Delayed New Wages Scheme Starting September
Credits: Wikimedia Commons

New Wage Scheme Soon to be Rolled Out in Bahrain

In relation to this, Bahrain will implement its much-delayed new wage system from September, meaning employers will have to transfer employees’ salaries directly into their bank accounts, as ashared in a report by Gulf News.

The Wage Protection System (WPS), whch has been launched last year has yet to be put into effect in order to give retail banks and providers more time to prepare for the management of the scheme.

According to Ausamah Al Absi, chief executive of the Labour Market Regulatory Authority (LMRA), they are now in the administrative phase and are expecting the WPS to be rolled out by the end of summer.

Al Absi further explained that the first phase of the scheme will cover all big companies, followed by small companies and then domestic workers in the country.

The entire process could take over a year, until all domestic workers are also covered under the new scheme.

The WPS will mean that employees will no longer be paid in cash but will receive their wages directly into their bank accounts through digital technology and advanced banking facilities.

With this transition soon to be implemented in the kingdom, the opportunity for migrant workers to be exploited by unethical employers will be managed more systematically, putting a solution to the vulnerabilities of the long-standing sponsorship or kafala system in most countries in the Middle East.

However, for the new system of wage protection or improved wage record-keeping to make marked impact across all sectors in the working society, there needs to be strong digital and banking technologies, to ensure that opportunities for exploitation of the system from the end of employers as well as third-parties (banking sector), will be pre-empted and duly addressed as the system is standardised across the Kingdom.

ALSO READ: [Guide] What You Need to Know About Working in Bahrain

[Guide] What You Need to Know About Working in Bahrain

[Guide] What You Need to Know About Working in Bahrain

There are many attractive places to work in the Middle East, but not all are as ideal as Bahrain, which has one of the strongest economies in the region as well as the warmest people to work with.

ALSO READ: Labour Laws in Bahrain: Working Hours and Rest Days

However, before you could even get a job in the country, you need to be acquainted first with the Labour Market Regulatory Authority (LMRA), which serves as the primary agency that handles all foreign workers coming into Bahrain. Through the LMRA, you will understand the requirements which you need to secure to apply for a work visa, identification card, and residency permit in the country.

[Guide] What You Need to Know About Working in Bahrain
Credits: Wikimedia Commons

An Expat’s Guide to Working in Bahrain

In this post, we will share with you some important information that you need to know about the LMRA to help you successfully land a job and hopefully build a career in this country:

  1. What is the Labour Market Regulatory Authority (LMRA)?

As mentioned earlier, the LMRA handles all people coming into Bahrain for employment. This means that if you want to work in Bahrain, you have to go through the process for application set by the LMRA since they would also be the ones to issue entry visas, residency permits, and identification cards.

Also, the LMRA closely works with the Ministry of Health in organizing medical appointments or check-ups. Furthermore, the LMRA is also responsible for transferring workers’ work visa to other employers once their contract ends.

  1. What are the requirements for Work Visa?

For those interested to work in Bahrain, here are the general requirements that you will need to prepare:

  • Visa application form
  • Valid passport
  • Passport size photographs
  • Letter of sponsorship
  • Photocopy of job contract
  • Health record from an authorized clinic
  • Processing fee of BD 1000

Note: The sponsorship letter is a letter of employment that should specify the worker’s name, date of birth, nationality, name of employer / company, commercial registration number, as well as salary.

  1. What are the requirements for Residency Permit or Family Visa?

Meanwhile, for those who are looking to bring their families with them to Bahrain, the following are the requirements needed to acquire a residency permit or family visa:

  • Application form
  • Photocopies of your passport (including those of your family members)
  • Your employee sponsorship letter
  • Your job contract
  • Your family health record issued by an authorized clinic
  • Processing fee of BD 22 per applicant

Note: All of the above requirements are to be submitted to the LMRA. The General Department for Nationality and Passport Residence is responsible for the issuance of your family visa.

  1. What are the requirements for Identification Card or CPR Card?

For those who need to obtain an identification card in Bahrain, also known as the CPR card, here are the following requirements that you need to present at the LMRA:

  • Valid passport
  • Letter of sponsorship indicating the name/s of your dependent/s (if any)
  • Marriage certificate (for spouse) and birth certificates (for children)
  • Processing fee of BD 1 per applicant

Other Things to Note:

Prior to leaving your home country, it’s important to perform the following measures:

  • Review the validity of your visa via the LMRA online portal.
  • Make sure that the clinic where you have availed your medical appointments is authorized and recognized by the LMRA to officially do so. You may visit their website to check their list of approved facilities.
  • Be sure to have the following documents with you:
    • Passport (along with several copies)
    • A photocopy of your LMRA-issued work visa
    • A photocopy of your job contract
    • Driver’s license (if any)
    • Education and skills certification (where applicable)
  • For those travelling with a spouse or with children, be sure to have a copy of your marriage certificate as well as your children’s passport/s.

As you would prepare for travel to any country, you need to secure all the basic requirements, including those needed by your employer when going to Bahrain. To know more about the specific requirements or changes posted for this purpose, be sure to check out the LMRA website as a general guide for your preparations.

ALSO READ: [GUIDE] Riding Public Buses in Bahrain Using a GO Card