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EMPLOYERS have been urged to encourage their staff to open a bank account for mandatory salary transfer every month, ahead of the launch of an updated Wage Protection System (WPS).
The system aims to protect the rights of foreign employees, especially low-income workers, who are sometimes paid in cash without a salary slip – resulting in exploitation and sometimes non-payment of wages by employers.
The Labour Market Regulatory Authority (LMRA) announced in a statement yesterday that the updated WPS will be launched soon to ensure the protection of rights of all parties through safe and timely payment of workers in the private sector.
However, the labour watchdog did not provide a date for the launch, or details of the updated system.
Updated Wages Protection System to be launched soon
The WPS was launched in 2021 by the government agency, with the first phase covering employers with 500 or more Bahraini and expatriate workers.
The second phase launched the same year included employers with 50 to 499 workers, while the final phase was for establishments with 49 or fewer employees.
Non-payment of salaries is one of the main labour complaints being tackled by the authorities with several cases reported over the years where construction workers were not paid for months.
“The authority has worked to develop the Wages Protection System as part of its commitment to respect contractual obligations,” said LMRA chief executive Nibras Talib.
“The updated version links our systems with relevant government agencies and the financial and banking sector, ensuring the accuracy of information and enhancing oversight.”
He explained the integrated system contributes to labour market stability and protects rights of all parties with wages electronically transferred to bank accounts.
The official said details of the updated WPS will be announced later, as he encouraged workers to open a bank account linked to the issued International Bank Account Number (IBAN).
He added that the system documents payment of the agreed-upon wage on time through oversight of financial transfer, and further respecting contractual obligations.
He said the LMRA has started holding meetings with companies, human resources staff and other entities to familiarise them with the updated WPS system and its mechanisms, and how the payment process is facilitated for owners of different enterprises.
The updated WPS is developed in co-operation with the Central Bank of Bahrain and Benefit, a fintech innovator and electronic financial transaction services provider.
“Bahrain has made significant strides in developing its work environment and a legislative framework that protects the rights of all parties without discrimination,” added Mr Talib.
“This is reflected in the latest US State Departments’ Trafficking in Persons Report 2025, in which Bahrain maintained its Tier-1 status for the eighth consecutive year.”
The GDN reported last week that Bahrain is the only GCC country recognised as being fully compliant with the Trafficking Victims Protection Act’s (TVPA) minimum standards for elimination of human trafficking.
The 25th edition of the annual report features narratives on 188 countries and territories, and covers the period from April 1, 2024 to March 31, 2025.
The document, in its prioritised recommendations, called upon Bahrain’s authorities to fully implement the WPS to include domestic workers, and ensure officials screen all wage theft cases for other trafficking indicators and refer such cases for criminal prosecution.
The report added that the LMRA reported it received 4,740 claims of unpaid wages from workers during the reporting year, referring 750 to labour courts for litigation.
Separately, 505 cases of wage theft were referred to court.
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