Bahrain's Minimum Wage: Understanding The Basic Salary

The minimum wage in a country is the lowest monthly or hourly remuneration that employers are legally allowed to pay their employees. In Bahrain, there is no separate minimum wage legislation, and no minimum wage for non-nationals and private sector workers. However, Bahraini nationals who are public sector workers are entitled to a minimum wage of BHD300 per month, according to a parliament-approved bill from January 2014. This amount varies depending on the level of education of the employee, with high school graduates earning BD350, diploma holders BD430, and bachelor's degree holders BD500.

Minimum wage in Bahrain is based on educational level

The minimum wage in Bahrain is based on an employee's educational level and whether they work in the public or private sector. For Bahraini citizens employed in the public sector, the minimum wage is determined by their educational attainment under the National Employment and Training Scheme.

For those with a high school diploma, the minimum wage is BD 300 (approximately $797 USD) per month. This is the lowest level of educational qualification that is considered for the minimum wage. For context, the average monthly salary for employees in Bahrain ranges from approximately 450 BHD to 4,000 BHD, with a median of 1,500 BHD.

If a Bahraini national holds a diploma degree, the minimum wage increases to BD 380 (around $1,013 USD) per month. This represents a higher level of education and skill attainment, which is reflected in the higher minimum wage.

The highest minimum wage is reserved for those with a university degree, who are entitled to a minimum wage of BD 450 (approximately $1,200 USD) per month. This is due to the specialised knowledge and skills typically acquired through a university education.

It is important to note that these minimum wages do not include additional benefits that employees may be entitled to, such as housing allowances, transportation allowances, and other benefits commonly offered in Bahrain.

In contrast to the public sector, Bahrain does not have a mandated minimum wage for private sector employees, regardless of their nationality. This means that workers in the private sector, including migrant workers, are not guaranteed a minimum wage and may face stagnant wages that do not keep pace with the rising cost of living.

There is no minimum wage for non-nationals and private sector workers

The minimum wage in Bahrain varies according to workers' sectors and nationalities. While Bahraini nationals working in the public sector are entitled to a minimum wage, there is no such legislation for non-nationals and private sector workers.

In January 2014, a minimum wage of BHD 300 was set for Bahraini nationals in the public sector under a parliament-approved bill. The amount varies according to educational qualifications: high school graduates receive BD350, diploma holders BD430, and bachelor's degree holders BD500. This minimum wage does not extend to non-nationals, and there is no separate minimum wage legislation for this group.

The Labour Law in Bahrain requires 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 [the worker] has been trained". However, this does not specify a minimum amount and there is no indication of the criteria for managing wages.

The absence of a minimum wage for non-nationals and private sector workers has resulted in many migrant workers earning far below the minimum living wage. According to Bahrain's Social Insurance Organisation, 71% of expatriates working in the private sector earn less than BD200 per month, with some reporting wages as low as BD60.

While Bahrain does not have a minimum wage for these workers, it has established a Wage Protection System (WPS) to ensure that employers transfer wages on specific dates without delay. Each delay in payment is punishable by a fine ranging from 200 to 500 Bahraini Dinars.

Bahrain's minimum wage is set according to categories and sectors

Bahrain's Minimum Wage Categories and Sectors

Public Sector

The minimum wage in the public sector is BHD 300 for Bahraini nationals. This applies only to citizens employed by the government and was set in January 2014 under a parliament-approved bill. The specific wage within this sector is determined by the worker's educational attainment under the National Employment and Training Scheme:

• High School Diploma: BHD 300 per month
• Diploma: BHD 380 per month
• University Degree: BHD 450 per month

Private Sector

Bahrain does not have a mandated minimum wage for private sector employees, regardless of nationality. This means that workers in the private sector, including migrant workers, are not guaranteed a minimum wage and may receive salaries below the estimated cost of living. However, a minimum wage of BHD 300 was set for Bahraini private sector workers in January 2014, and inspectors from the Ministry of Labour and Social Development ensure the enforcement of minimum wage provisions.

Migrant Workers

Bahrain has no minimum wage for non-nationals, and migrant workers often earn far below the minimum living wage suggested by organisations like the General Federation of Bahrain Trade Unions (GFTBU). According to Bahrain's Social Insurance Organisation, 71% of expatriates working in the private sector earn less than BHD 200 per month.

Migrant workers are paid below the suggested minimum wage

Migrant workers in Bahrain are paid below the suggested minimum wage, despite the high profits of private sector companies. While there is no separate minimum wage legislation in Bahrain, the Labour Law states 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". However, in practice, migrant workers often earn far below the minimum living wage.

According to the General Federation of Bahrain Trade Unions (GFTBU), the minimum wage for Bahraini workers should be BD700 (US$1,857), as "anything below this salary does not meet life’s obligations" in the country. However, Bahrain has no minimum wage for non-nationals and private sector workers, leaving migrant workers vulnerable to low wages.

The situation is further exacerbated by the rising cost of living in Bahrain. While companies in key sectors are seeing substantial profits, wages for migrant workers have remained stagnant. As a result, 71% of expatriates working in Bahrain's private sector earn less than BD200 (US$530) per month, with some reporting wages as low as BD60 (US$158). This disparity has led to calls for the Bahraini government to establish a minimum wage for all workers, regardless of nationality or sector.

The lack of a minimum wage for migrant workers has resulted in exploitative practices, with some workers not receiving any pay adjustments in over six years. This has led to increased vulnerability for low-income migrant workers, who struggle to keep up with the rising cost of living. The situation highlights the need for regulatory intervention to ensure that all workers in Bahrain are paid a fair and livable wage.

The issue of migrant workers being paid below the suggested minimum wage in Bahrain is a pressing one that needs to be addressed by the government. With companies profiting while workers struggle, the disparity in income has widened. A universal minimum wage that applies to all workers, regardless of nationality or sector, could help alleviate the financial burden on migrant workers and ensure that they are paid a fair and livable wage.

The country has no separate minimum wage legislation

The country of Bahrain does not have separate minimum wage legislation. However, the Labour Law states 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 [the employee] has been trained".

In 2014, a minimum wage of BHD 300 was set for Bahraini private sector workers and pensioners under a parliament-approved bill. This applied only to Bahraini nationals, with the amount varying based on educational qualifications. For example, those with a high school diploma received BHD 300, while those with a university degree were entitled to BHD 450. The bill also recommended setting up a fund to supplement the salaries and pensions of those receiving less than BHD 300 per month.

There have been calls to raise the minimum wage for Bahraini workers to BD700 (US$1,857), with the argument that "anything below this salary does not meet life’s obligations". However, it is unclear whether the Shura Council approved the aforementioned bill, and there is no separate minimum wage legislation in the country.

The lack of a separate minimum wage law means that there is no standard rate for all workers, and wages can vary based on factors such as industry, sector, job type, and length of service. Bahrain's minimum wage system is based on categories and sectors, with the Ministry of Labor setting the minimum wage according to these factors and the educational level of the individual.

While there is no national minimum wage in Bahrain, it is important to note that there are still legal obligations that employers must adhere to. Violation of minimum wage provisions can result in fines ranging from 200 to 500 Bahraini Dinars. Additionally, the Labour Law for the Private Sector outlines various rights and protections for employees, such as maximum working hours, vacation days, sick leave, and maternity/paternity leave.

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