Manama: Banks in Bahrain are in the process of upgrading their systems ahead of the implementation of a new scheme, under which every employer must transfer salaries of their staff into their accounts.
The Wage Protection System (WPS) is set for implementation from May and aims to protect the rights of all employees in the country, especially low income workers and domestic staff.
The GDN previously reported that the Central Bank of Bahrain (CBB) invited feedback from chief executives of different retail banks and payment service providers ahead of its roll-out.
“We are on track with the implementation of this scheme,” CBB banking supervision executive director Khalid Hamad told the GDN yesterday.
“All of the approved licensees are currently upgrading their systems to provide services to the unbankable segment.”
He said banks were working to introduce prepaid cards and mobile payments as part of the scheme, which aims to end exploitation of workers who are often paid in cash without a salary slip.
It will also notify authorities if a worker has not been paid through an integrated database.
Mr Hamad said there had been unprecedented development in the financial sector, with more than 15 new companies set up providing financial technology (FinTech) services.
The official was speaking during the epay Summit yesterday at the Ritz-Carlton Bahrain, attended by senior bank representatives and experts.
In his keynote speech, Bahrain Bourse chairman Abdulkareem Bucheery said electronic payment is the future of the financial and banking services.
“E-payments play a crucial role in stimulating the economy,” he said.
“According to a study done by VISA, e-payments added $296 billion to GDP in 70 countries between 2011 and 2015, that was equivalent to the creation of about 2.6 million jobs on average per year.”
The two-day conference ends today and is dedicated to e-payment, Internet banking, technology and applications.
Meanwhile, Labour Market Regulatory Authority (LMRA) chief executive Ausamah Al Absi said it was also putting Information Technology systems in place ahead of the roll out of WPS.
“We are working on the technical details in our systems before we introduce the Wage Protection System by May,” said Mr Al Absi.
“Every employer will have to transfer salaries in bank accounts of their staff that fulfils their contractual obligations.
“The scheme will initially cover those hiring a large number of workers and gradually move to those individually employed like domestic workers.”
Mr Al Absi said WPS would also alert authorities to companies that did not pay their staff.
“Our systems will alert us in case of non-payment of wages, whether it’s for a group of workers or an individual case,” he said.
“We will know who is paying and who is not, and that will protect the rights of all parties.”
Mr Al Absi said many options were available for employers, such as prepaid cards and mobile wallets to pay their staff.
“This is a major project that will use Amazon Cloud Computing, that is a secure system and full data confidentiality will be maintained,” he added.
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