A proposed increase in Bahrain’s work permit fees aims to strengthen Bahrainisation by raising the cost of hiring expatriate workers and funding training for local citizens. The plan would introduce a tiered fee system based on salary levels, with permits for jobs paying over BD1,200 rising from a flat BD500 to BD2,500, a fivefold jump. While supporters believe this will boost employment for Bahrainis, the Bahrain Chamber of Commerce and Industry warns it could burden small and medium-sized businesses as Parliament prepares for a key debate on the matter.
Under the new proposal, jobs with salaries up to BD200 would continue to pay the existing fee, meaning they would not incur any increase. Positions earning between BD201 and BD500 would see their fees double to BD1,000. Jobs paying between BD501 and BD800 would incur a fee of BD1,500, while roles with salaries from BD801 to BD1,200 would face a fee of BD2,000. The highest earners, those making over BD1,200, would attract the maximum fee of BD2,500. This proposal has been sent to the Services Committee, backed by several MPs.
According to the proposers, the public interest considerations justifying this proposal include achieving the intended goal of an optional additional fee structure for issuing or renewing work permits outside the mandated Bahrainisation rates, which will be based on an average wage of BD500 for the positions in question. It aims to contribute to an increase in the number of Bahraini positions and adherence to mandated Bahrainisation rates. The Labour Market Regulatory Authority (LMRA) has shown support for Parliament’s efforts but raised concerns about relying on average wages as a measure for the new fee structure.
The LMRA has raised concerns about the potential manipulation of average wages by employers, casting doubt on the accuracy of the proposed fees. They point to the success of the current optional additional fee system, in place since 2019, which has improved the competitiveness of Bahraini workers compared to foreign workers. The BCCI has echoed these worries, warning that the proposed rises could push up costs for many, especially small and medium-sized businesses, potentially impacting consumers.
In conclusion, while the LMRA is open to engaging with the Services Committee to provide further clarifications on the matter, they insist on a careful approach to ensure any changes effectively support the proposal’s aims without creating gaps. The proposed increase in work permit fees in Bahrain is a hot topic of debate, with supporters seeing it as a boost for employment for locals and critics warning of potential burdens on businesses and consumers. As Parliament prepares for a key debate, it remains to be seen how this proposal will play out and what impact it may have on the country’s labor market and economy.
