Gulf Cooperation Council (GCC) countries have made significant progress in building systems to ensure private sector workers are paid fully and on time, according to a new joint report by the International Labour Organisation (ILO) and the Executive Bureau of Council of Ministers of Labour and Social Affairs in GCC states (EB-GCC).
The report titled "Wage Protection Systems in the Gulf Cooperation Council Countries: a regional analysis," offers a first regional analysis of the innovative Wage Protection Systems (WPS) in the GCC, and provides recommendations to further support fair and transparent wage practices across the private sector.
The report was unveiled at an information meeting organized by the EB-GCC at the ILO headquarters in Geneva. The event brought together policymakers, worker and employer representatives and international organizations under the umbrella of the Global Coalition for Social Justice, an ILO-led initiative to advance social justice across the globe.
The report outlines how, over the past decade and a half, the six GCC countries - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates - have taken significant strides to ensure the timely and correct payment of wages through the establishment of WPSs. These systems - electronic salary transfer systems that enable government oversight of wage payments in the private sector - were developed in line with the ILO Protection of Wages Convention, 1949 (No. 95) and the Protection of Wages Recommendation, 1949 (No. 85). They constitute a pioneering regional innovation that seeks to enhance transparency and accountability in wage payment practices.
The report provides a comprehensive analysis of how these WPSs were designed and operate, drawing on data and insights from GCC government focal points and a joint ILO-GCC Executive Bureau workshop. It identifies promising practices, key challenges, and actionable recommendations to further strengthen wage protection across the region.
GCC Executive Bureau and ILO representatives underscored the importance of collaborative regional efforts to strengthen wage protection frameworks and uphold decent work principles.
ILO Director-General Gilbert F. Houngbo highly commended the excellent cooperation between the ILO and the GCC in advancing fair, transparent and inclusive labour markets, noting that "the launch of this new regional analysis on Wage Protection Systems is a powerful testament to what we can achieve together."
He underscored that the report itself reflects exemplary collaboration between the GCC Executive Bureau and the ILO and "provides a valuable reference point for other countries seeking to enhance transparency and fairness in wage payment."
Director-General of the GCC Executive Bureau Mohammed Al-Obaidli highlighted the Bureau's long-standing partnership with the ILO and the practical value of the report. He reaffirmed that "this joint effort builds on close cooperation between the GCC and the ILO." Director-General Al-Obaidli further emphasized that "The GCC's journey in implementing the Wage Protection System serves as a valuable, established model for nations seeking to boost transparency and ensure fairness in wage payments globally."
The report was developed under the ILO's FAIRWAY Programme which is funded by the Swiss Agency for Development and Cooperation. As a next step, the ILO and the GCC Executive Bureau will jointly organize a follow-up workshop with the participation of GCC member states to review and build upon the report's findings. The workshop will aim to identify practical measures to strengthen wage protection systems in the GCC and promote greater compliance and coverage, further supporting decent work outcomes in the region.
