Minimum Wage
There is no separate minimum wage legislation in the Country; neither there is any indication as to the criteria for managing the same. The Labour Law while discussing the pay for apprentices requires employers that the “wage or reward in the final phase shall not be less than the minimum wage for similar work in the occupation, trade or handicraft for which he has been trained”. Bahrain has a minimum wage for the public sector. A minimum wage of BHD 300 was set for the Bahraini private sector workers and pensioners in January 2014 under a parliament approved bill. The bill also recommended for setting up a fund to supplement the salaries and pensions of those receiving less than BHD 300 per month. There is no clear information whether the said bill was approved by the Shura Council.
Officers of the Ministry of Labour and Social Development, who are delegated the inspection duties, are empowered to undertake inspections and ensure the enforcement of provisions of the Law. For such duties, the inspectors have the access to the work sites, examine the records related to workers and to seek the necessary information, data and documents. Violation of minimum wage and wage payment provisions of the labour law is punishable with a fine ranging from 200 to 500 Bahraini Dinars.
Sources: §16, 177, and 188 of the Private Sector Labour Law 2012
Regular Pay
Under the Labour Law for the Private Sector 2012, the term wage is defined as:
All what the worker receives in return for his work of any kind whatsoever, whether fixed or variable, in cash or in kind, including the basic wage and its accessories such as gratuities, allowances, grants, rewards, commissions, and other benefits.
The worker’s wage is determined in accordance with the individual or collective labour contract or the work regulations at the establishment. In case the wage is not determined in such manners, the worker is entitled to a wage calculated for the work of the same nature. Where no such wage exists, it is calculated in accordance with the business practices retained in the occupation in the relevant sector. If no such practices exist, the competent court will then estimate the wage due to the worker in accordance with the requirements of equity.
Wages can be calculated by the hour, day, and week, month, on a piece-rate or per production. However, they will not be deemed to be calculated on a piece-work or production basis unless expressly specified in the labour contract. The wages and other amounts due to the worker are to be paid in the Bahraini currency (Dinar) and an agreement may be concluded for their payment in a foreign currency. Moreover, wages are to be paid on one of the working days at the workplace, subject to the following:
1- Workers appointed with a monthly wage are paid at least once a month;
2- If the wage is paid per production and the work completion will take more than two weeks, the worker receives each week an payment in accordance with the completed work, provided the remaining amount is paid during the week following the completion of the entrusted work;
3- Other than the above two cases, workers’ wages are paid once every week, unless otherwise agreed upon;
On termination of employment, a worker must be immediately paid his wages and all other amounts due to him. However, if the employment is terminated by the worker, the employer is required to pay the the dues within a period of seven days from the date worker left his work.
In the event of delay in wage payment, employer has to pay extra compensation. The compensation rate is 6% of the due wages for delay one to six months. The rate increases by 1% for each month above 6 months however the maximum rate is 12% of wages per year.
Decree Law No. (59) of 2018 has established the Wage Protection System (WPS) in Bahrain. The system is launched by the Labour Market Regulatory Authority. The WPS ensures that the employer shall transfer wages of workers on specific dates without delaying it. Each delay in payment of wages is punishable with fine ranging from 200-500 Dinars. The fine amount is arrived at by multiplying the number of workers with the fine amount per instance.
An employer cannot deduct more than 10 percent of the worker’s wage in repayment of any amounts loaned to the worker during the validity period of the contract. Such deductions can be raised to 25 percent in respect of house building loans, subject to the worker’s written consent. No interest can be charged on loans or wages paid in advance. If a worker leaves his work before repayment of the loan owed by him, the employer may carry out the off-setting between the amounts borrowed by the worker against the sums due to him by the employer.
The wage due to the worker may not be attached and no portion of it may be assigned or deducted as payment of a debt except to the extent of 25 percent. This proportion may be increased to 50 percent for the payment of alimony. In the event of the payment of multiple debts, alimony will receive first priority, followed by any amounts to be paid to the employer. The validity of the assignment of any portion of the wage, within the above limit, is subject to the worker’s written consent.
Sources: §01 and 38-45 of the Private Sector Labour Law 2012; §188 of the Decree Law No. (59) of 2018
