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Bahrain MPs Approve Plan to Scrap BD500 Fee for Expat Permit

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Bahrain MPs Approve Plan to Scrap BD500 Fee for Expat Permit

Bahrain’s Parliament has approved a plan to remove the BD500 fee that allows companies to bypass Bahrainisation quotas, despite strong objections from the Labour Market Regulatory Authority (LMRA) and the Bahrain Chamber of Commerce and Industry (BCCI).

Concerns Over Local Hiring

The LMRA warns that eliminating the fee may push businesses to hire more foreign workers instead of Bahrainis. The current system, which charges companies for exceeding expatriate employment limits, encourages compliance with Bahrainisation requirements.

"The surge in foreign permits shows where employers are focused," said MP Bader Al Tamimi, who supports the plan. "We face a serious job crisis, and it's time to prioritise Bahraini workers."

Business Perspective

The BCCI expressed concerns that removing the fee could lead to workforce gaps, reduced quality, and harm Bahrain’s economy. It emphasized the need for specialized foreign expertise in some roles and called for a comprehensive overhaul of labour regulations to address unemployment without stifling business operations.

Measures to Boost Bahraini Employment

Since 2016, the fee system has been part of a Cabinet directive on LMRA charges. It has undergone adjustments over the years to align with Bahrain’s labour market goals.

To promote local hiring, the LMRA requires companies to advertise job openings within Bahrain and interview Bahraini applicants before hiring foreign workers. Employers must wait 21 days during this process to ensure foreign recruitment is not the default option.

Balancing Local Talent and Business Needs

Al Tamimi stressed that the plan isn't about penalizing companies but rather about supporting Bahraini workers. "If a company truly values homegrown talent, it shouldn't need a fee to guide it in that direction," he added.

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