Bahrain's MP calls for mandatory wage increases in private sector

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Bahrain - A Bahraini legislator has called for mandatory annual wage increases in the private sector to boost job stability and ease the financial burden on citizens.

MP Jalal Kadhem Al Mahfoodh has submitted a draft amendment to the 2012 Private Sector Employment Law that would require employers to grant every Bahraini employee, who has completed two consecutive calendar years of service, a yearly increment of no less than 2.5 per cent of their basic salary.

The increase would continue to apply annually throughout the employee’s tenure with the same employer.

The proposal, however, exempts daily-wage workers, those hired on a temporary basis for less than six months, part-timers and citizens taking home monthly allowances rather than salaries from receiving the pay rise.

“This proposal is about fairness and sustainability,” Mr Al Mahfoodh told the GDN.

“A large segment of citizens working in the private sector suffer from stagnant wages despite years of loyal service. Their families are struggling to cope with rising living costs, and we cannot allow their salaries to remain frozen while prices increase.

“This draft law is designed to protect long-term, full-time employees who are committed to their jobs. It is not meant to impose unrealistic obligations on employers for temporary or part-time arrangements.”

Mr Al Mahfoodh said the main objective of the proposal was to make Bahrain’s private sector more attractive and competitive for national talent, aligning with the kingdom’s Economic Vision 2030.

“Many Bahrainis still see the public sector as more secure because of regular increments and benefits,” he pointed out.

“By ensuring a guaranteed annual raise in the private sector, we not only improve workers’ living standards but also encourage stability and loyalty.

“This helps narrow the gap between the two sectors and reduces pressure on government jobs.”

The MP warned that wage stagnation in the private sector could have long-term social and economic consequences.

“When salaries don’t grow, it affects family life, morale and productivity,” he said.

“At the same time, it forces workers to constantly look towards the government sector for better opportunities, which is not sustainable.

“This amendment will help workers meet the rising cost of living while giving them confidence to remain in their private sector jobs.”

Mr Al Mahfoodh described the amendment as a small but significant step towards sustainable development and national prosperity.

“Adopting this system would mark an important milestone in strengthening job security, improving quality of life and enabling the private sector to attract and retain national talent,” he said.

“It is a practical solution that benefits both workers and the economy by creating stability and long-term growth.”

Parliament Speaker Ahmed Al Musallam referred the proposed amendments to the services committee yesterday.