$63m relief for Bahrain businesses
Manama, April 14, 2011
Bahrain employers will be spared up to BD24 million ($63.6 million) following the decision to freeze monthly fees on expatriate workers for six months - on the basis of BD4 million monthly.
'The moratorium aims to ease financial burdens facing businessmen in this critical period,' Labour Minister Jameel Humaidan said yesterday.
He paid tribute to the leadership for efforts to revitalise the economy and contain the damage resulting from the regrettable developments which gripped Bahrain over the last two months.
Humaidan, also Labour Market Regulatory Authority (LMRA) chairman, said the construction sector will benefit most from the grace period.
According to latest figures, the sector, which relies heavily on expat workforce, contributes 30 per cent to the LMRA revenues.
The retail and industrial sectors will also benefit from the moratorium, as they contribute 20 per cent and 14 per cent respectively to the levies.
Humaidan said large companies would be spared an estimated BD1.5 million in fees.
The measure would benefit firms which employ more than 100 foreigners who represent a minimum 40 per cent of the overall workforce.
'These companies will be able to meet their commitments and go ahead with their projects,' he said.
Similary, small companies will be able to continue their activities. Businesses, which employ less that 10 foreigners each, contribute up to 30 per cent to the LMRA.
Companies employing from 20 to 99 foreigners will also benefit as they contribute 21 per cent to the levy scheme.
Humaidan stressed the need to enhance the quality of jobs to reduce reliance on expat workers.-TradeArabia News Service