ALL companies employing 10 or more workers will have to pay staff through banks starting July 1, it was revealed yesterday.

The new wage plan, approved by the Cabinet this January, makes it mandatory for private sector establishments to pay their employees' wages through banks.

The move aims to ensure that workers, who are often paid in cash, can prove that their wages have not been paid on time by the employers.

It will come into force on July 1, Labour Ministry Under-Secretary Shaikh Abdulrahman bin Abdulla Al Khalifa told the ambassadors of India, Pakistan, Bangladesh and the Philippines yesterday.

The modalities of the scheme were finalised by the Labour Ministry after holding talks with the Bahrain Chamber of Commerce and Industry (BCCI).

It will be initially applied to all companies employing 10 or more workers, said Shaikh Abdulrahman at a meeting with ambassadors of labour exporting countries yesterday.

He said the new scheme would give an exact picture of companies, which fail to pay their workers in time.

"A large number of labour disputes in Bahrain are related to non-payment or delays in payment of wages," said Shaikh Abdulrahman.

"Sometimes when workers file complaints with our ministry, they have no proof to show that the wages have not been paid.

"As the payment is very often by cash, it is difficult to prove the claim of non-payment."

Shaikh Abdulrahman said the new scheme would also help the ministry to make an accurate study on the standard of wages in Bahrain.

Indian Ambassador Balkrishna Shetty welcomed the government's new move and said it would help cut down the number of labour disputes.

"This is a very good beginning to protect the interest of workers," he told the GDN.

"One of the major complaints from our nationals who are involved in labour disputes is the delay in payment of wages.

"The Cabinet order which forces all companies employing 10 or more workers to pay through banks is a very healthy move at a time when Bahrain is pursuing major labour reforms."

Shaikh Abdulrahman also said the ministry would now hold talks with the ambassadors of labour exporting countries on a regular basis, said Mr Shetty.

"While the labour attaches will have meetings with labour relations director Shaikh Ali bin Abdulrahman Al Khalifa every month, the meetings with ambassadors will be held once in three months," he revealed.

"This will help us to present to the authorities all major issues facing our community.

"Though housemaids do not come under the labour law, Shaikh Abdulrahman said the ministry would look into all genuine problems affecting housemaids."