Bahrain introduces enhanced system to protect wages and support private sector stability

Bahrain’s LMRA unveils upgraded Wages Protection System to secure workers’ rights and streamline private sector payrolls/Image: BNA

Bahrain’s Labour Market Regulatory Authority (LMRA) has rolled out an upgraded version of its Wages Protection System (WPS), designed to ensure transparent, timely, and documented wage payments across the private sector. The enhanced system aims to protect workers’ rights, support employers in managing payroll efficiently, and reinforce Bahrain’s standing as a regional model for fair labour practices and modern financial solutions.

The LMRA announced the launch of the enhanced Wages Protection System as part of its ongoing efforts to safeguard the rights of all work parties and ensure wage payments are made on time. The system records every transaction electronically, supporting contractual stability and transparency in Bahrain’s private sector.Nibras Talib, Chief Executive Officer of the LMRA and Chairman of the National Committee for Combatting Trafficking in Persons, said the upgraded platform was developed in collaboration with the Central Bank of Bahrain, the Bahrain Electronic Network for Financial Transactions (Benefit), and several private sector partners.He explained that the improved WPS helps establishments document and process salaries electronically without needing to build separate financial systems. The initiative aligns with LMRA’s strategy to provide a fair, safe, and stable work environment for national and expatriate employees alike.

Talib highlighted that the system gives equal priority to protecting employees’ rights and supporting national companies in managing administrative and financial operations. The enhanced system helps employers streamline human resources processes, reduce operational costs, and promote business sustainability.He emphasised that this digital shift benefits small and micro establishments in particular by strengthening labour relations, preventing wage disputes, and ensuring faster resolution of any issues. This contributes directly to improving job security and enhancing employer credibility within the labour market.The LMRA Chief Executive called on private sector employers to start adopting electronic wage payments through the new system and urged workers to activate their bank accounts to receive salaries seamlessly.

Nibras Talib commended the cooperation of banks and financial institutions that participated in the system’s pilot phase. He noted that their efforts ensured smooth technical alignment and system integration before the official launch. This collaboration, he added, represents a model example of effective partnership between the public and private sectors in building Bahrain’s digital labour infrastructure.Abdulwahed AlJanahi, Chief Executive of Benefit, expressed pride in the company’s strategic partnership with LMRA in developing the WPS. He described the initiative as a vital step toward enhancing labour market stability, protecting all parties’ rights, and enabling employers to use secure, efficient, and modern payment solutions.AlJanahi said the collaboration demonstrates Benefit’s commitment to innovation and to working with government and regulatory bodies to strengthen Bahrain’s position as a leading regional centre for labour rights protection and electronic payment technologies.

According to the LMRA, the Wages Protection System allows employers to pay salaries through banks and financial institutions authorised by the Central Bank of Bahrain. The system has been designed to ensure transparency, accountability, and compliance with national labour laws.The Authority has completed testing procedures to align the systems of multiple banks and financial institutions with the WPS, confirming service readiness and operational efficiency. Remaining institutions are currently being integrated ahead of full implementation, scheduled for the first quarter of 2026.To prepare the private sector for adoption, the LMRA has started conducting monthly training and orientation workshops in both Arabic and English for employers and HR personnel. Details and schedules of these sessions are available on the Authority’s official website. Go to Source