Manama: The Labour Market Regulatory Authority (LMRA) announced that it is in the final stages of preparation to launch the upgraded version of the Wage Protection System (WPS), designed to create a comprehensive framework that strengthens labour market stability and safeguards the rights of all parties. The new system will electronically verify the timely payment of wages to private sector employees. The LMRA said that banks and financial institutions that have completed aligning their systems with the new platform will be announced gradually.
Nibras Mohamed Ali Taleb, LMRA CEO, Chairman of the National Committee to Combat Trafficking in Persons, highlighted Bahrain’s progress in developing a fair and well-regulated labour environment, which has earned the Kingdom international trust and enhanced its appeal to investors. He noted that Bahrain’s strong legal framework protects the rights of all parties equally and pointed to the Kingdom’s achievement of Tier 1 status for the eighth consecutive year in the US Department of State’s Trafficking in Persons Report, an accomplishment that reflects Bahrain’s firm commitment to upholding international standards in human rights and labour protection.
Talib explained that the LMRA has developed the new version of the WPS as part of Bahrain’s ongoing efforts to maintain its leadership in labour market governance and to ensure stability in employment relationships. The upgraded system will serve as an integrated platform connecting the LMRA with relevant government bodies and the financial and banking sector, enhancing data accuracy, transparency, and oversight.
He added that the alignment of banking systems with the WPS is being implemented in stages to suit the operations of each institution, and that each bank completing the pilot phase will be announced in due course. Talib also urged employers to encourage their workers to open and activate international bank accounts (IBAN) to ensure smooth transactions once the upgraded system is launched.
The enhanced WPS will record wage payments made on time and in full through secure bank transfers, reducing wage-related disputes and expediting their resolution. It will also enable the LMRA and other government entities to conduct evidence-based studies to support labour market planning and policy-making.
Talib noted that the upgraded system will provide employers with a reliable and secure mechanism to pay wages, helping them maintain stable employment relations and reducing operational burdens, particularly for small and micro enterprises, without the need for separate payroll systems. The platform also offers flexibility in payment schedules that can be adapted to each organisation’s policies.
The LMRA has begun holding information sessions for company representatives and human resources officials to introduce the system’s features and demonstrate how it simplifies wage payments for enterprises of all sizes, including those operating under commercial registrations once they join the system.
The Wage Protection System has been developed in cooperation with the Central Bank of Bahrain (CBB) and the BENEFIT Company (Bahrain Electronic Network for Financial Transactions).
