Will Bahrain’s minimum salary increase?

TDT | Manama                              

The Daily Tribune – www.newsofbahrain.com     

Report by Ashen Tharaka

Minimum wage is the lowest amount that a worker may be paid for his or her work.

Most countries have a nationwide minimum wage that all workers must receive. Only Bahraini citizens are subject to the BD300 rate set for public sector employees in the Kingdom.

The minimum salary was last revised on January 1, 2015. A considerable section of expatriates earn a low income and at the same time face high living costs since the pandemic while private sector profits surge.

Low-wage workers are now even more at risk due to increased living expenses. Hence Bahrain does not have a minimum wage for expatriates, there is no mandatory minimum rate of pay for workers.

Pay rates must be agreed upon directly with the employer through collective bargaining or other means of negotiating a fair living wage. Under these circumstances, with the increase in the cost of living, people often working as labourers and small-scale businessmen are also facing the basic problem of living on a minimum income.

Salim Thoduvel, a businessman from Manama Souq, who spoke to The Daily Tribune, said that even in a small shop, they now had to pay a minimum wage of BD225 to employees, with the remaining BD100 going toward room rent, water, electricity and food.

According to Bahrain’s Social Insurance Organisation, 71% of expatriates working in Bahrain’s private sector today earn less than BD200 a month. This year is not favourable for the world economy, according to forecasts made by leading economists. However according to reports the economy of Bahrain, which derives most of its income from oil, is strong.