The Central bank of Bahrain (CBB) has co-ordinated efforts with Benefit Company to ensure compliance and readiness of systems and procedures adopted by most retail banks in addition to payment service providers including 26 banks and five companies.
The move aims to create electronic portfolios for all workers in order to transfer their salaries to these accounts once they are due for payment, the CBB said.
It followed Decision No 22 of 20121 issued by the Labour and Social Development Minister on March 25 concerning implementation of the first phase of Wage Protection System whereby employers commit to regular and timely transfer of workers’ wages to their bank accounts through any of the payment methods facilitated by entities licensed by CBB.
The trial implementation of the first phase of the Wage Protection System was completed successfully in April and official implementation was in May this year, the CBB said.
The system aims to exert more control on employers and protect employees’ interests. It will also help provide financial services to all social categories at minimum cost through the latest financial technologies, it added.