October 6, Manama (BNA): The updated Wage Protection System (WPS), which aims to establish a comprehensive framework that fortifies labor market stability and protects the rights of all parties, is about to be launched, the Labour Market Regulatory Authority (LMRA) announced. The new method will electronically confirm that workers in the private sector are paid on time. Banks and other financial institutions that have finished integrating their systems with the new platform will be progressively publicized, according to the LMRA.
LMRA: Upgraded version of WPS to be launched soon
The Nibras Bahrain has made strides in creating a just and well-regulated work environment, which has gained the Kingdom international trust and increased its attractiveness to investors, according to Mohamed Ali Taleb, CEO of LMRA and Chairman of the National Committee to Combat Trafficking in Persons. In addition to pointing out that the Kingdom has achieved Tier 1 status for the eighth consecutive year in the US Department of State’s Trafficking in Persons Report, he said that Bahrain’s robust legal system protects the rights of all parties equally. This achievement demonstrates Bahrain’s strong commitment to upholding international standards in labor protection and human rights.
As part of Bahrain’s continuous efforts to uphold its leadership in labor market administration and to guarantee stability in employment relationships, Talib clarified, the LMRA created the updated WPS. The improved system will improve data accuracy, openness, and supervision by acting as an integrated platform that links the LMRA with other government agencies as well as the banking and financial industry.
In order to accommodate each institution’s operations, he continued, the alignment of banking systems with the WPS is being implemented gradually. Each bank that completes the pilot phase will be announced when it is ready. In order to guarantee seamless transactions after the updated system is implemented, Talib also asked employers to encourage their employees to open and activate foreign bank accounts (IBAN).
The improved WPS will reduce wage-related disputes and speed up their resolution by recording wage payments made on time and in full via secure bank transfers. Additionally, it will make evidence-based research possible for the LMRA and other government agencies to support labor market planning and policy-making.
Without the need for separate payroll systems, Talib stated that the updated system will give employers a dependable and secure way to pay wages, assisting them in maintaining stable employment relations and lowering operational burdens, especially for small and micro businesses. Additionally, the platform provides flexible payment schedules that may be tailored to the requirements of individual organizations.
In order to explain the features of the system and show how it streamlines wage payments for businesses of all sizes, including those with commercial registrations after they join the system, the LMRA has started hosting information sessions for company representatives and HR officials.
The Central Bank of Bahrain (CBB) and the BENEFIT Company (Bahrain Electronic Network for Financial Transactions) collaborated to develop the Wage Protection System.
