Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain

Payroll Processing Services in Bahrain – WPS-Compliant & Hassle-Free

Handling payroll in Bahrain can feel overwhelming. Between staying compliant with the Wage Protection System (WPS), calculating end-of-service benefits, preparing SIF files, and avoiding legal fines, even a small payroll error can turn into a costly problem. That’s why more Bahrain-based businesses are turning to outsourced payroll services—to save time, reduce risk, and ensure their staff is paid accurately and on time.

At Fama BH, we offer end-to-end payroll processing in Bahrain tailored to your company size, structure, and industry. Whether you have 5 employees or 500, we manage everything from salary calculation and WPS compliance to gratuity management and payslip distribution—so you don’t have to. Our bilingual team works closely with Bahrain’s legal framework, labor laws, and LMRA requirements to ensure your payroll is 100% accurate, confidential, and compliant.

Accounting and audit firm bahrain

Why Accurate Payroll Matters in Bahrain

Legal compliance with Bahrain’s WPS system

The Wage Protection System (WPS), enforced by the Labour Market Regulatory Authority (LMRA), requires all employers in Bahrain to pay their employees electronically via approved banking systems—and report it to government authorities using a Salary Information File (SIF).

Missing or incorrect payroll submissions can result in:

  • Hefty fines

  • Suspension of work permits

  • Delayed labor approvals or license renewals

We ensure:

  • Every payroll run follows WPS rules

  • SIF files are formatted and submitted properly

  • All employee payments are traceable and LMRA-compliant

 

Avoiding fines and employee disputes

Late salary payments, incorrect deductions, or overtime miscalculations can quickly lead to employee dissatisfaction, legal complaints, and labor disputes. In a competitive market like Bahrain, payroll errors damage your brand and morale.

With Fama, your team gets:

  • Timely, accurate salaries every cycle

  • Transparent payslips

  • Proper leave and bonus documentation

This helps you maintain trust and retention, especially among skilled and expat workers.

 

Enhancing employee satisfaction and retention

Payroll is more than a transaction—it’s a relationship. Employees expect:

  • Clarity in how their salary is calculated

  • Proper documentation for their records and visa renewals

  • Timely payments, especially during holidays or Ramadan

We help you:

  • Avoid payroll stress before salary day

  • Provide digital or printed payslips

  • Offer breakdowns of deductions, bonuses, and overtime

 

When employees know they’re paid fairly and on time, they stay longer and work harder.

 

Challenges of Managing Payroll In-House

Complex calculations for overtime, holidays, and bonuses

In Bahrain, payroll isn’t just a simple gross-to-net formula. You must factor in:

  • Overtime (daily, weekly, or holiday-based)

  • Public holiday adjustments

  • Weekend shifts and night differentials

  • Monthly vs bi-weekly pay cycles

  • Bonuses and commissions

Missing a formula or using the wrong rate leads to inaccurate payroll and legal exposure. Our systems automate these calculations based on your HR policies and Bahrain’s labor laws.

 

Managing leaves, gratuity, and end-of-service benefits

Employees accrue leave, sick days, and gratuity every month. Tracking this manually means:

  • Delayed final settlements

  • Confusion over leave balances

  • Overpayment or underpayment of end-of-service dues

We offer automated tracking of:

  • Annual leave

  • Sick leave

  • Gratuity (based on years of service, per Bahrain Labor Law)

This reduces manual errors and gives HR clear visibility into each employee’s entitlements.

 

Staying up-to-date with ever-changing labor laws

Bahrain’s labor regulations evolve frequently—from changes in leave policy to WPS enforcement or minimum wage adjustments. Most business owners and HR managers don’t have the time or legal training to stay updated.

Our team stays on top of:

  • LMRA announcements

  • Ministry of Labor regulations

  • Bank and payment compliance updates

So your payroll stays compliant—without the guesswork.

 

Our End-to-End Payroll Processing Services

Salary calculation and payslip generation

 

Every month, we:

  • Calculate gross salary, deductions, and net pay

  • Apply overtime, bonuses, leave balances

  • Generate and format payslips (digital or hardcopy)

 

Payslips include:

  • Basic salary and allowances

  • Overtime, incentives, and bonuses

  • Deductions (leave, advances, GOSI, etc.)

  • Net pay in BHD

 

All payslips are branded with your company’s logo and details, and available in English or Arabic.

 

WPS file preparation and bank submissions

We prepare your Salary Information File (SIF) in the exact format required by the WPS system. Then we:

  • Submit it to your approved bank

  • Ensure successful salary transfers

  • Confirm LMRA compliance status post-payment

No more formatting errors, rejected files, or late salary reports.

 

Gratuity, leave encashment, and final settlements

When an employee resigns, is terminated, or completes their service, we handle:

  • Final gratuity calculations

  • Leave encashment

  • Deductions for notice period or advances

  • Final payslip and SIF adjustments

This ensures smooth offboarding with zero compliance risk.

 

Payroll Services for All Business Sizes

Startups and small teams

Even if you have just 3 to 10 employees, payroll compliance applies. We offer:

  • Affordable monthly payroll runs

  • Full WPS support

  • Leave and salary tracking

Perfect for agencies, consultants, freelancers with staff, and family-run businesses.

 

Growing SMEs and multi-branch operations

As you expand, payroll complexity grows. We help you:

  • Manage payroll for different locations

  • Assign cost centers

  • Create department-wise salary reports

 

Our SME payroll plans support:

  • 10 to 100 employees

  • Integration with time-tracking or HR software

  • Consolidated reports for management

 

Corporate groups with 100+ employees

Large firms need enterprise-grade payroll systems. We offer:

  • Batch uploads and imports from ERP/HRMS

  • Payroll calendars and approvals

  • Integration with SAP, Oracle, Zoho People

We handle everything from multi-level approvals to bank coordination, ensuring accurate, compliant, and timely payroll for every department.

Bahrain WPS (Wage Protection System) Explained

What is WPS and who must comply

The Wage Protection System (WPS) is a digital framework introduced by Bahrain’s Labour Market Regulatory Authority (LMRA) that ensures salaries are paid through secure, trackable bank channels. All private sector employers are required to:

  • Pay employees through WPS-approved banks

  • Submit a Salary Information File (SIF) monthly

  • Maintain accurate payroll records

 

This system protects employee rights and ensures wage transparency. Non-compliance can result in:

  • Work permit freezes

  • Penalties starting at BHD 500

  • Delays in government approvals

Fama ensures your payroll processes meet all WPS standards and avoids these risks.

 

SIF file preparation and LMRA integration

We take care of the entire WPS process:

  • Creating monthly SIF files in the approved format

  • Uploading to your bank’s WPS portal

  • Cross-checking successful transactions

  • Coordinating with LMRA if errors or flags occur

All our processes are synced with LMRA’s system updates to ensure error-free reporting.

 

Payroll compliance audits and penalties

If your company is flagged for a payroll compliance audit, we:

  • Prepare a full payroll register

  • Provide proof of payment and payslips

  • Generate LMRA and bank confirmation reports

We also help respond to any inquiries and represent your payroll status professionally to the regulators.

 

Custom Payroll Reports and Employee Dashboards

Monthly payroll summaries

Each month, we deliver a payroll package that includes:

  • Total salary disbursed

  • Breakdown by department or role

  • Attendance-based payment calculations

  • Payroll liabilities (GOSI, gratuity, etc.)

These reports are useful for finance teams, auditors, and management review.

 

Individual salary slips and breakdowns

Your employees receive clean, clear payslips that can be:

  • Emailed securely

  • Downloaded from a portal

  • Printed and sealed if required

Each payslip includes:

  • Basic and gross salary

  • Allowances

  • Deductions and net pay

  • Payment method reference

You can choose between Arabic, English, or bilingual formats.

 

Reports for auditors, LMRA, and internal HR

For audits, visa renewals, or internal HR reviews, we generate:

  • Employee salary history reports

  • Monthly SIF files and proof of payment

  • Gratuity accruals and leave balances

  • GOSI contribution statements

We handle the data so you’re always one step ahead of auditors or regulators.

 

Integration With Time & Attendance Systems

Automated overtime and leave calculation

We integrate with your time-tracking tools—biometric scanners, mobile apps, or software like Zoho People or HRM systems—to automate:

  • Overtime rates (weekend, public holidays)

  • Absence deductions

  • Half-day or short-leave flags

This removes the need for manual entry and eliminates errors.

 

Linking biometric or mobile punch-in data

Got a fingerprint scanner or swipe card system? We’ll pull attendance logs and map them to payroll records, saving HR hours of manual calculations.

We can also handle:

  • Mobile punch-ins for remote staff

  • QR code or GPS-tagged attendance

  • Multiple shifts and break deductions

 

Reducing payroll errors and manual entries

Payroll errors usually happen when too many hands touch too many spreadsheets. Our integrated system streamlines:

  • Data collection

  • Validation

  • Payroll approvals

You get error-free, consistent, and audit-traceable payroll—every single cycle.

 

Leave and Gratuity Management Made Easy

Sick leave, annual leave, and unpaid leave tracking

Every employee has a unique leave balance. We:

  • Monitor accruals based on policy

  • Update balances automatically

  • Show remaining leaves on payslips

  • Alert HR when limits are reached

This ensures fairness and transparency for employees, and fewer disputes for HR.

 

Automated leave encashment

When employees take paid leave or exit the company, we calculate:

  • Pro-rated leave salaries

  • Carry-forward or encashable days

  • Unused vacation payouts

This amount is included in payroll or final settlement, with full documentation.

 

Gratuity calculations as per Bahrain labor law

End-of-service gratuity is mandatory under Bahrain’s labor code. We:

  • Track years of service

  • Calculate final amounts with allowances

  • Adjust for resignations, terminations, or retirements

You get accurate, legally compliant gratuity settlements—and avoid overpaying or underpaying outgoing staff.

 

Why Outsource Payroll to Fama

100% compliant and confidential

We follow the highest data security standards, with:

  • Confidential payroll files

  • Encrypted delivery

  • Access control based on roles

Our team signs NDAs and is trained in payroll confidentiality, so your employees’ data is safe, secure, and trusted.

 

Bilingual support team

Our Arabic-English support team helps you:

  • Communicate with regulators like LMRA

  • Provide Arabic payslips and reports for staff

  • Understand compliance requirements in both languages

This is essential for multi-national teams or government-related matters.

 

Dedicated payroll manager for every client

You won’t be bounced around. You get one payroll manager who:

  • Knows your company’s structure

  • Handles your monthly reports

  • Manages WPS submissions

  • Answers your questions directly

This means faster support, fewer errors, and a relationship that grows with your team.

 

How Our Payroll Service Works

Step 1: Collect employee data and timesheets

Each cycle, we collect:

  • Timesheets or attendance logs

  • Bonus or incentive details

  • Changes in employee contracts

We validate all data for WPS compliance before processing.

 

Step 2: Run payroll and review reports

We process payroll using:

  • Custom salary structures

  • Bahrain labor law formulas

  • Department-wise cost tracking

We then send you a review report, allowing you to approve salaries before they’re locked in.

 

Step 3: Submit WPS and share payslips

Once approved, we:

  • Submit the SIF file to your bank

  • Confirm salary transfers

  • Email or upload payslips to staff

  • Archive all records for audit

It’s smooth, simple, and stress-free.

 

Transparent Pricing for Payroll Services

Monthly fees based on employee headcount

HeadcountPrice Range (BHD/month)Inclusions
1–10 Employees50–100WPS, payslips, leave/gratuity tracking
11–50 Employees150–300Custom reports, department-wise payroll
51–100+ Employees400–600+Full HRMS support, biometric integration

Add-ons for leave, bonus, and gratuity management

Add services like:

  • Gratuity fund tracking

  • Custom bonus calculations

  • Detailed cost center payroll splits

Each can be bundled into your monthly plan or priced separately.

 

Special rates for HR and accounting clients

Already using our accounting or audit services? You get up to 20% off payroll processing as part of a bundled package.

 

Payroll Compliance for Multinational Companies in Bahrain

Local labor law alignment

We help global HR teams ensure their Bahrain branches follow:

  • LMRA rules

  • End-of-service formulas

  • Local working hours and leave policies

We also guide HQs on aligning global policies with Bahrain regulations.

 

Arabic payslips and documentation

Your Bahrain-based employees receive:

  • Arabic salary slips

  • Official employment records

  • Leave and gratuity summaries in both languages

Perfect for government requests and internal transparency.

 

Coordination with global HQ or finance teams

We work directly with:

  • Group finance officers

  • External payroll vendors

  • International HR platforms

This keeps your Bahrain payroll in sync with global systems—without extra effort from your side.

 

Book a Free Payroll Compliance Check

Worried about errors, fines, or employee issues? Book your free 30-minute payroll consultation, where we:

  • Review your current process

  • Identify gaps in compliance or calculations

  • Share a no-obligation quote

You’ll walk away with clarity and confidence, even if you don’t sign up.

 

Conclusion

Payroll in Bahrain doesn’t have to be complex, time-consuming, or risky. With Fama Accounting, you get fast, accurate, and WPS-compliant payroll services that keep your employees happy and your business protected.

Whether you’re a startup or a corporate giant, we tailor our payroll solutions to fit your team, your industry, and your goals—at a price that makes sense.

 

FAQs

1. Do I need to be on WPS if I only have 5 employees?

Yes. All private companies must comply with WPS, regardless of size.

 

2. Can I generate Arabic payslips for local staff?

Absolutely. We offer bilingual payslips with every plan.

 

3. How do you handle bonuses and commissions?

We track and calculate all bonus structures as per your policy and include them in the monthly payroll cycle.

 

4. What if I miss a payroll deadline?

We help you fast-track corrections and resubmissions to avoid penalties and restore compliance.

 

5. Can you work with my HR software or biometric system?

Yes. We integrate with most attendance systems and can adapt to your existing HR tools.

Get a Free Quote

Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.

Write to Us

Pricing Plan

Below is an overview of our general pricing packages for our suite of services in Bahrain. Costs vary depending on factors such as the services we offer.

Chosose Plan

Accounting

Chosose Plan

VAT

Chosose Plan

Audit

Testimonials

What Clients Say About Us

Read some reviews and success stories from our loyal customers who achieved their goals and how our expert solutions have made a lasting impact on their growth, compliance, and financial clarity. Your success is our greatest achievement!

    Maria Luise Lackner

    Client

    I am so happy to have chosen this company! Right from the start it was a very easy decision, I knew I am in the right hands. They contacted me with every update they had and always kept me up to date with all the information and steps that we will proceed next.

      Aya Alsalman

      Client

      Highly recommend for anyone looking to establish a company in Bahrain! Waqas Akram and his team made the entire process smooth and stress-free. They were incredibly knowledgeable, responsive, and handled every detail with professionalism.

        Meghaa Muraleedharan

        Client

        The team was highly professional, efficient, and knowledgeable. They ensured that all paperwork and procedures were handled smoothly, saving us both time and effort. I highly recommend their services to anyone looking out there.

          Joseph Dawber

          Client

          Abdullah and the team have been great in assisting me with related tasks. In challenging timeframes they've supported me to ensure our company operations can start in Bahrain without any issues. Thank you. I will recommed their services.

            Jennifer Giannosa

            Client

            I was extremely impressed with their services. Their expertise made everything smooth and hassle-free. I highly recommend Setup in Bahrain for anyone looking for their business here. Their professionalism and commitment to customer satisfaction are top-notch.

            What Makes Us the Best Choice?

            With years of experience and a highly qualified team, we bring unmatched expertise and in-depth knowledge of Bahrain’s financial landscape to every service we provide.

            Personalized & Tailored Approach

            Years of Experience & Unmatched Expertise

            Comprehensive Solutions Under One Roof

            Accuracy, Reliability, and Client Satisfaction