Underpaid workers can undertake wage checks and challenge employers

At a glance

• According to the Labour Market Regulatory Authority (LMRA) workers who suspect they are being underpaid can now verify their official wages and hold their employers accountable, as Bahrain’s Wage Protection System intensifies scrutiny of salary violations.
• The government is dedicated to safeguarding wages and monitoring pay management.
• A memorandum signed between the LMRA and the Social Insurance Organisation last year has integrated the wage protection system with insured wage records, making it more difficult for businesses to understate salaries.
• Employers who underpay may face penalties, including work permit suspension or cancellation.

According to the LMRA workers who suspect they are being underpaid can now verify their official wages and hold their employers accountable, as Bahrain’s Wage Protection System intensifies scrutiny of salary violations. The authority has confirmed the system’s expanded reach following inquiries in the Shura Council regarding wage compliance and whether businesses were complying to agreed pay rates. In a written response to a Shura Council member, the LMRA has stated that measures are in place to track payments and intervene when employers fail to meet their obligations. 

The government is committed to safeguarding workers' wages and closely monitoring how pay is managed. The Wage Protection System, introduced in 2019, mandates companies to pay staff through banks or other approved financial services, allowing authorities to verify that wages align with contractual agreements. 

A memorandum signed between the LMRA and the Social Insurance Organisation last year has integrated the wage protection system with insured wage records, making it more difficult for businesses to understate salaries. "This joint effort enhances oversight and ensures employers fulfil their obligations, preventing the misreporting of wages," the LMRA stated. Monthly payroll reports are scrutinised, and cases of underpayment are flagged to ensure contributions correspond with actual earnings. Employers who fail to pay full wages on time may face penalties, including the suspension or cancellation of work permits. 

The LMRA has emphasised that a business cannot recruit foreign staff if it has a history of paying below the agreed contractual amounts. Workers have the right to take their employer to court over unpaid wages, with labour cases exempt from fees. The LMRA’s Protection and Grievances Centre supports foreign staff in lodging claims, tracking disputes, and managing paperwork through a digital system established with the Justice Ministry.