Bahrain to implement wage protection system in 2021- Report


Bahrain, after years of delay, announced its gradual implementation of Wage Protection System (WPS) on May 01, 2021, as the last country in the Gulf to implement the electronic salary transfer system.

The announcement came from the Ministry of Labour and Social Development (MOLSD) where it mandates employers to use the WPS to pay employees via bank transfer.

The payment methods will be provided by those authorized by the Central Bank of Bahrain and the rollout will consist of three phases, starting with companies which employ more than 500 workers.

The second phase will cover companies with 50 to 499 workers starting on Sept. 01, 2021, while the third phase will cover companies with 1 to 49 workers, to be implemented on Jan. 01, 2022.

A six-month grace period will be provided to employers to implement the WPS regulations from the start of each respective phase.

As is often the case, domestic workers who are among the most vulnerable to wage theft and unfair deductions, are left out of the WPS system altogether.

However, according to the new regulation, employers of domestic workers can “voluntarily” opt for the WPS.

While this move is a step in the right direction, it remains unclear whether Bahrain’s WPS will be used to immediately alert labour officials of non-payment cases, or if it will only be used to enhance transparency and support the judicial authority in settling wage-related disputes.

It is important that the WPS does both functions as low-income migrant workers are often intimidated into working for months without their wages and systematically discouraged from filing complaints against their employer at the labour courts.

It is also worth mentioning that contrary to official narratives around WPS, it does little to “guarantee” wages or to stop the delays and unpaid wages on its own. Its limitations were particularly evident during the COVID-19 crisis when WPS across the Gulf failed to flag cases of wage theft and protect workers’ wages.

Furthermore, reforms to the wider system are needed for the WPS to have a meaningful impact.

Thousands of migrant workers in Bahrain who were identified by the government and labour courts as victims of non-payment and yet were unable to recoup their owed wages due to employers terminating visas, filing absconding cases, inaction by the executive court, as well as lack of support to migrant workers awaiting judgements.

It also remains unclear if and how Free-visa workers and Flexi-Permit holders will be included in the WPS, given that many of them work for multiple employers or work as freelancers. (Source: Migrant Rights)