BHD 150 Insurance Now a Must for Manpower Permits

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

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Jameel bin Mohammed Ali Humaidan, Minister of Labour and Chairman of the Labour Market Regulatory Authority (LMRA), has announced a significant regulatory update for licensed manpower agencies. Under Decision No. 4 of 2024, which amends Article (6) of Decision No. 3 of 2014, licensed agencies are now required to deposit BHD 150 as insurance for every work permit issued, in addition to the regular work permit fee.

This new requirement applies to manpower agencies that supply labourers on temporary contracts, whether hourly, daily, monthly, or yearly. The Labour Market Regulatory Authority (LMRA) emphasized that the decision is focused specifically on agencies offering temporary labour services.

The BHD 150 insurance deposit will serve as a safeguard for covering repatriation costs for foreign workers hired by these licensed supply agencies. The new measure is aimed at protecting both the workers and the agencies involved, ensuring that the financial burden of repatriation does not fall on workers in cases of contract termination or other related circumstances.

The decision reflects Bahrain’s ongoing efforts to enhance the regulatory framework of the labour market while ensuring the protection of both workers and employers.
The amendment is expected to impact licensed manpower agencies across Bahrain, prompting them to factor in the new costs when securing work permits for temporary labourers. However, it also represents a proactive step toward ensuring better financial security for foreign workers in the country.