Bahrain Prepares to Launch Upgraded Wage Protection System

The Labour Market Regulatory Authority (LMRA) has begun the final preparations to roll out the upgraded version of the Wage Protection System (WPS), designed to create a comprehensive framework that ensures timely wage payments in the private sector while safeguarding the rights of all parties. The authorities confirmed that announcements regarding financial institutions that have fully aligned their systems with the WPS will be made gradually.

In a statement, Mr. Nebras Talib, Chief Executive of the LMRA and Chair of the National Committee to Combat Human Trafficking, highlighted Bahrain’s significant strides in developing a robust work environment that has earned international trust and recognition. He emphasized that the Kingdom’s legal and regulatory framework protects the rights of all workers without discrimination, reinforcing Bahrain’s appeal for investment. Mr. Talib also pointed out that Bahrain has maintained its top-ranking status in the U.S. Department of State’s annual Trafficking in Persons report for the eighth consecutive year, reflecting its commitment to the highest international standards in human rights and labor protection.

“The upgraded Wage Protection System represents a fully integrated platform connecting LMRA, relevant government agencies, and the financial sector,” Mr. Talib explained. “It ensures accurate information, strengthens oversight, and enhances transparency across the labor market.”

He noted that financial institutions are gradually aligning their systems with the WPS according to their operational requirements, with each institution being officially announced once it completes the pilot phase. Employers are encouraged to assist their employees in opening and activating international bank accounts (IBANs) to streamline wage transfer processes once the upgraded system is launched.

The revamped system will allow employers to document wage payments on time and in the agreed amounts via secure electronic transfers. This is expected to reduce labor disputes related to wages and accelerate their resolution. Additionally, it will enable LMRA and government bodies to conduct comprehensive economic studies and gain a clearer understanding of labor market trends.

Mr. Talib also highlighted the system’s benefits for employers, particularly small and micro-enterprises, by providing a secure, reliable, and flexible platform for wage disbursement without the need to invest in separate payroll systems. The system supports flexible payment schedules tailored to the policies of different institutions while maintaining contractual relationships with employees.

The LMRA has already started conducting informational sessions with company representatives, human resources officials, and business owners to demonstrate the system’s features and usage, showcasing how it simplifies wage payments for organizations of all sizes, including registered individual businesses that join the system.

The development of the upgraded Wage Protection System has been coordinated with the Central Bank of Bahrain and the Bahrain Electronic Network for Financial Transactions (BENEFIT).