Underpaid Workers Can Check Wages and Challenge Employers

Workers who suspect they are being underpaid can now verify their official wages and hold their employers to account, as Bahrain’s Wage Protection System steps up scrutiny of salary violations, the Labour Market Regulatory Authority has said.

The authority confirmed the system’s expanded reach after questions were raised in the Shura Council about wage compliance and whether businesses were meeting agreed pay rates. In a written response to Shura Council member Nancy Khedouri, the LMRA said measures were in place to track payments and step in when employers failed to meet their obligations.

‘The government is keen to protect workers’ wages and keep a close watch on how pay is handled,’ the LMRA stated. The Wage Protection System, introduced in 2019, requires companies to pay staff through banks or other approved financial services, ensuring authorities can check that wages match what is written in contracts.

Under Ministerial Decision No. 68 of 2019, employers must transfer salaries using providers licensed by the Central Bank of Bahrain. The LMRA holds a database to monitor these payments and flag any shortfalls or irregularities.

The LMRA also outlined its work with the Social Insurance Organisation (SIO) to confirm that employees are registered with their actual wages, ensuring insurance contributions are calculated correctly. A memorandum signed between the two agencies last year has linked the wage protection system with insured wage records, making it harder for businesses to understate salaries.

‘This joint effort strengthens oversight and ensures employers meet their obligations, preventing the misreporting of wages,’ the LMRA said. Monthly payroll reports are examined, and cases of underpayment are flagged to ensure contributions align with actual earnings.

Employers who fail to pay full wages on time may face penalties, including the suspension or cancellation of work permits. The LMRA made it clear that a business cannot bring in foreign staff if it has a record of paying below what was agreed in contracts.

Workers have the right to take their employer to court over unpaid wages, with labour cases exempt from fees. The LMRA’s Protection and Grievances Centre assists foreign staff in lodging claims, tracking disputes, and managing paperwork through a digital system set up with the Ministry of Justice.

The LMRA said it would continue working to ensure businesses comply with the rules and workers receive what they are owed.