Minimum Wage
There is no separate minimum wage legislation in the country, nor any indication of the criteria for managing it. The Labour Law specifies that, when discussing pay for apprentices, employers must ensure 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. There is no general minimum wage for private-sector workers in Bahrain. The minimum wage is notified for the Bahraini nationals in the public sector only.
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 access to the work sites, examine the records related to workers and 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
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
Under the Labour Law for the Private Sector 2012, the term wage is defined as:
All that the worker receives in return for his work of any kind whatsoever, whether fixed or variable, in cash or kind, including the basic wage and its accessories such as gratuities, allowances, grants, rewards, commissions, and other benefits.
The worker’s wage is determined by the individual or collective labour contract or the work regulations at the establishment. In case the wage is not defined in such a manner, the worker is entitled to a salary calculated for the work of the exact nature. Where no such wage exists, it is calculated by 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 following principles of equity.
Wages can be calculated hourly, daily, weekly, monthly, on a piece-rate basis, or per production. However, they will not be considered to be calculated on a piece-work or production basis unless explicitly stated in the labour contract. The wages and other amounts owed to the worker are to be paid in Bahraini currency (Dinar), and an agreement may be made for their payment in a foreign currency. Furthermore, wages are to be paid on one of the working days at the workplace, subject to the following:
- Workers appointed with a monthly wage are paid at least once a month;
- If the wage is paid per production and the work completion will take more than two weeks, the worker receives a payment each week by the completed work, provided the remaining amount is paid during the week following the completion of the entrusted work;
- 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 worker terminates the employment, the employer is required to pay the dues within seven days of the worker's departure.
In case of a delay in wage payment, the employer must pay extra compensation. The compensation rate is 6% of the owed wages for delays of one to six months. The rate increases by 1% for each additional month beyond six 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 Labour Market Regulatory Authority launches the system. The WPS requires that the employer transfer workers' wages on specific dates without delay. Bahrain’s Wage Protection System (WPS) was fully implemented by 2022, requiring wages to be paid through bank transfers. Each delay in salary payment is punishable by a fine of 200 to 500 Dinars. The fine amount is arrived at by multiplying the number of workers by the fine amount per instance.
An employer cannot deduct more than 10 per cent of a worker’s wage to repay any amounts loaned to them during the contract's validity period. Such deductions can be increased to 25 per cent for 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 before repaying the loan, the employer may offset the borrowed amounts against any sums owed to the worker.
The wages owed to the worker cannot be attached, and no part may be assigned or deducted as payment of a debt except up to 25 per cent. This amount may be increased to 50 per cent for alimony payments. In cases of multiple debts, alimony will have priority, followed by any sums owed to the employer. The validity of assigning any part of the wages within these limits depends on the worker’s written consent.
There is no provision in the Labour Law for the Private Sector requiring employers to pay a 13th-month or 14th-month salary, or any general profit-sharing bonus, or any universal year-end or festival bonus.
Any such payments are purely contractual and may arise from an individual employment contract, a collective labour agreement, or company policy / custom, in which case they may become a contractual entitlement if they are consistently applied.
Sources: §01 and 37-45 of the Private Sector Labour Law 2012; §188 of the Decree Law No. (59) of 2018
