The minimum wage in a country is the legal lowest remuneration employers can 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 BHD 300 per month, with higher minimum wages for those with higher educational qualifications.

Minimum Wage in Bahrain

Minimum wage in Bahrain for public sector workers

Bahrain does not have a universal minimum wage that applies to all workers. However, a minimum wage exists specifically for Bahraini citizens employed in the public sector. This minimum wage is determined by the workers' educational qualifications under the National Employment and Training Scheme.

High School Diploma

Bahraini citizens with a high school diploma are entitled to a minimum wage of BHD 300 per month (approximately $797 USD).

Diploma

Those with a diploma are entitled to a minimum wage of BHD 380 per month (approximately $1013 USD).

University Degree

Bahraini citizens with a university degree are entitled to a minimum wage of BHD 450 per month (approximately $1200 USD).

It is important to note that this minimum wage only applies to Bahraini nationals working for the government and does not extend to private sector employees or expatriate workers.

Enforcement and Violations

The Ministry of Labour and Social Development is responsible for enforcing the minimum wage provisions. Violations of the minimum wage laws can result in fines ranging from 200 to 500 Bahraini Dinars.

Collective Bargaining

In the absence of a universal minimum wage, pay rates for workers in Bahrain are typically agreed upon directly with employers through collective bargaining or other means of negotiating a fair living wage.

Migrant workers' pay in Bahrain

Migrant workers in Bahrain are foreign employees who have moved to the country for work. Bahrain has long been a hub for international trade and commerce, with its shores visited by people from the Arabian Peninsula, Iran, Mesopotamia, India, and Europe. The country's oil development in the 1930s and the expansion of various sectors in the 1950s and 1960s led to a significant increase in migrant workers, who now make up a large part of the workforce.

Migrant workers in Bahrain mainly come from South and Southeast Asia, Egypt, and Jordan, and they are typically employed in sectors such as construction, automotive repair, hospitality, and domestic service. While the Bahraini government asserts that the labour code for the private sector applies to all workers, foreign employees often face discrimination and unfair treatment in the workplace. This includes instances of withheld passports, restricted movement, substituted contracts, and non-payment of wages.

In terms of pay, Bahrain does not have a separate minimum wage legislation, and there is no minimum wage for non-nationals and private sector workers. 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 in the private sector earn less than BD200 (US$530) per month, with some reporting wages as low as BD60 (US$158). This is despite the substantial profits of Bahraini companies in key sectors and the rising cost of living in the country.

The issue of low wages for migrant workers has been a cause for concern, with organisations like the GFTBU calling for a minimum wage increase to BD700 (US$1,857) to meet the basic obligations of life in Bahrain. Additionally, there have been reports of migrant workers not receiving any pay adjustments in over six years and facing issues with salary non-payments. In some cases, companies have provided cheques to workers for the amounts owed, only for the workers to discover that there were insufficient funds in the sending accounts.

National Employment and Training Scheme in Bahrain

The National Employment and Training Scheme in Bahrain sets out the minimum wage for public employees depending on their educational qualifications. The minimum wage requirements based on educational qualifications are as follows:

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

The Labour Law for the Private Sector (Law No. 36 of 2012) is the primary legislation that all private-sector employers must adhere to, as it governs employment relationships in the country. As of 2024, there is no minimum wage requirement for private-sector employers in Bahrain. However, the minimum wage for Bahraini nationals employed by the government is set at BHD 300 per month.

The National Employment Program, overseen by the Labour Market Regulatory Authority (LMRA), aims to increase employment opportunities for Bahraini university graduates in the private sector and support business growth. Under this scheme, businesses can recruit nominated, high-performing university graduates registered with the Ministry of Labour (MLSD). Nominated candidates from the MLSD lists will be offered free professional training and receive wage support from the Ministry of Labour, including up to 70% wage support during the first year of employment.

The Unemployment Insurance Scheme (UIS), launched in 2007, is a mandatory contributory scheme covering all Bahraini and foreign nationals employed in the country's formal and informal sectors. It is designed to provide basic income security for all working-age residents and citizens. The scheme is financed by contributions of 3% of employee wages, shared equally between the employee, employer, and government. The UIS provides two types of benefits: the Unemployment Aid Benefit and the Compensation Benefit. The former is available to first-time job seekers, providing a monthly payment of BHD 150 or USD 398 to new university graduates and BHD 120 or USD 318 to others for a maximum of six months. The latter is available to unemployed persons and consists of a monthly benefit calculated at 60% of the insured salary, ranging from a minimum of BHD 150 to a maximum of BHD 500, payable for up to six months.

While Bahrain's UIS has successfully assisted over 6,000 job seekers in finding employment, the country faces challenges regarding migrant workers' wages. According to Bahrain's Social Insurance Organisation, 71% of expatriates working in the private sector earn less than BD 200 (USD 530) per month, with some reporting wages as low as BD 60 (USD 158). The General Federation of Bahrain Trade Unions (GFTBU) has called for raising the minimum wage for Bahraini workers to BD 700 (USD 1,857), arguing that anything below this salary does not meet the cost of living in the country.

Bahrain's minimum wage by education level

In Bahrain, there is no universal minimum wage that applies to all workers in the private sector. However, a minimum wage exists specifically for Bahraini citizens employed in the public sector, and this is determined by their educational qualifications.

Under the National Employment and Training Scheme, the following minimum wages are in place:

• Bahraini nationals with a high school diploma are entitled to a minimum wage of BHD300 per month (approximately $797 USD).
• Those with a diploma degree are entitled to a minimum wage of BHD380 per month (around $1013 USD).
• Citizens with a university degree are entitled to a minimum wage of BHD450 per month (approximately $1200 USD).

It is important to note that these minimum wages only apply to Bahraini citizens working for the government and do not extend to private sector employees or expatriate workers, regardless of their profession or educational background.

While there is no separate minimum wage legislation in Bahrain, the Labour Law addresses the pay for apprentices. It requires employers to 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."

The lack of a universal minimum wage in Bahrain has led to concerns about the wages of migrant workers, particularly as profits in key sectors soar. According to Bahrain's Social Insurance Organisation, 71% of expatriates working in the private sector earn less than BD200 (approximately $530 USD per month), with some reporting wages as low as BD60 ($158 USD).

Bahrain's minimum wage compared to other countries

Bahrain's minimum wage policies have evolved in recent years, with a focus on supporting Bahraini citizens and ensuring a basic standard of living for all workers. As of 2021, a new labour law was introduced, setting a minimum wage for both Bahraini citizens and expatriate workers in the private sector.

For Bahraini citizens, the minimum monthly wage was set at 400 BHD (Bahraini Dinar), with higher amounts of 450 BHD for those with university degrees, 380 BHD for diploma holders, and 300 BHD for high school graduates. This move aimed to support Bahraini families and promote a competitive labour market.

Non-Bahraini or expatriate employees are also subject to minimum wage regulations, but these can vary depending on contracts, negotiations, and their specific sector. In some cases, expatriates may receive a minimum wage as stipulated by their home country to protect their welfare. However, Bahrain has no separate minimum wage legislation, and for non-nationals and private sector workers, there is no standardised hourly minimum wage rate.

When comparing Bahrain's minimum wage to other countries, it is essential to consider factors such as the cost of living, taxation, and social security benefits, which can impact the disposable income of employees. Within the Gulf Cooperation Council (GCC), Bahrain's average monthly salaries are competitive, especially when factoring in the cost of living. Countries like Qatar and the United Arab Emirates (UAE) have higher average salaries, but these are offset by a higher cost of living. Additionally, Bahrain does not levy personal income tax on salaries, increasing the net take-home pay for employees.

In comparison to western countries like the United States, Bahrain's nominal average salaries may be lower, but these countries often have higher living expenses and taxes. The social benefits and healthcare systems also differ, affecting the overall quality of life and disposable income. Currency exchange rates also play a significant role in these comparisons, influencing the purchasing power of employees, especially when remitting earnings to their home countries.

While simple salary comparisons provide a basic understanding, a comprehensive evaluation of economic well-being should consider local conditions, taxation, benefits, and personal circumstances. Bahrain's minimum wage policies aim to balance the needs of its citizens with the diverse nature of its workforce, ensuring that workers can meet their basic needs.

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