🇧🇭 Bahrain payroll — WPS, SIO & end-of-service

Bahrain WPS Payroll Software with SIO and End-of-Service

Run salaries for Bahrain’s Wage Protection System, calculate SIO contributions and expatriate end-of-service, issue payslips and post the journal — every month, in one run.

Enhanced WPS readySIO contributionsEnd-of-serviceNo credit card required

Payroll That Posts Straight to Your Accounts

Salary, SIO and end-of-service handled in one run.

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Salary Calculation

Basic salary, allowances, overtime, unpaid leave and deductions calculated per employee.

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WPS Payment Preparation

Each pay run prepared for payment through the Wage Protection System via your bank or payment provider.

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SIO Contributions

Employee and employer shares calculated per employee, with rate tables you can update when the SIO changes them.

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Expatriate End-of-Service

Monthly end-of-service contributions to the SIO for non-Bahraini staff — 4.2% of wage for the first 3 years, 8.4% after.

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Payslips

Digital payslips for every employee, available in the employee self-service portal.

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Ledger Posting

Salary expense, SIO liabilities and end-of-service post to the general ledger automatically.

How a Bahrain Payroll Run Works

1

Calculate

Salaries, overtime and deductions from approved attendance and leave.

2

Contribute

SIO and end-of-service contributions worked out per employee.

3

Pay via WPS

Salaries paid through the Wage Protection System.

4

Post

Payroll journal posted; SIO paid by the 15th of the next month.

Bahrain Payroll Rules at a Glance

Topic2026 rule
Wage Protection SystemEnhanced WPS mandatory for all private-sector employers from February 2026, run by the Labour Market Regulatory Authority (LMRA)
Wages Responsible PersonEmployers appoint a person responsible for wage payments under the system
SIO contributionsPaid monthly, by the 15th of the following month
Insurable wage capBHD 4,000 a month
Expatriate end-of-servicePaid to the SIO since March 2024 (Resolution No. 109 of 2023): 4.2% of wage for the first 3 years, 8.4% after
Bahraini employeesCovered by the SIO pension scheme, with employer contributions rising each year to 2028

Last reviewed October 2026. Tax and payroll content is general information — confirm your position with the National Bureau for Revenue (NBR), the LMRA, the SIO or a licensed Bahrain adviser.

Bahrain WPS Payroll — FAQs

It is the LMRA system that monitors whether private-sector employers pay wages on time and in full through approved banks and payment providers. It became mandatory for all private-sector employers from February 2026, and employers that fail to comply can face restrictions on LMRA services such as work permits.

Yes. ETaxFlow calculates the employee and employer SIO contributions for each employee, Bahraini and non-Bahraini, on wages up to the BHD 4,000 cap, and gives you a monthly summary for payment by the 15th of the following month.

Since March 2024, employers pay a monthly end-of-service contribution to the SIO for non-Bahraini employees — 4.2% of wage for the first three years of service and 8.4% after that. End-of-service accrued before that date remains the employer’s responsibility, and ETaxFlow keeps that balance on record.

Yes. Each payroll run posts salary expense, deductions, SIO liabilities and end-of-service to your general ledger, so payroll and accounts always agree.

Run Bahrain Payroll Without the Manual Work

Salaries, WPS, SIO and end-of-service — in one monthly run.

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