--- title: Bahrain Payroll Payslips: Frequently Asked Questions url: https://www.erpbahrain.com/compliance/payroll-payslips/faq/ updated: 2026-10-09 publisher: BAHRAIN ERP (part of Shyphan AI Solutions Pvt Ltd) --- Compliance # Bahrain Payroll Payslips: Frequently Asked Questions Answers to common questions about payroll payslips in an ERP context. Quick answer Payroll Payslips in Bahrain: Law 36/2012 Art 40: wages are paid in Bahraini currency (foreign currency by agreement), on a working day, and monthly-paid workers are paid at least once a month. Art 46: an employer is discharged of the wage only if the worker signs a payment register, payroll or receipt, or the wage is transferred to a bank at the worker's request. - Art 44: loan deductions are capped at 10% of wage (up to 25% for housing loans with written consent); Art 45: attachment or assignment is limited to 25% of wage, up to 50% for alimony. - Art 54: overtime is paid at wage plus at least 25% for day hours and at least 50% for night hours; Art 57(b): work on the weekly rest day is paid at 150%. - Art 40(c): delayed wages attract compensation at 6% per annum up to six months, rising 1% per month thereafter to a maximum of 12% per annum. - Sources checked 2026-10-09 This page is part of our Bahrain compliance series. Related topics: [WPS Payroll](https://www.erpbahrain.com/compliance/wps-payroll/), [WPS Bank Files](https://www.erpbahrain.com/compliance/wps-bank-files/). Apply them in [Zoho Books](https://www.erpbahrain.com/zoho/zoho-books/), [Odoo Accounting](https://www.erpbahrain.com/odoo/odoo-accounting/) or [ERPNext Accounting](https://www.erpbahrain.com/erpnext/erpnext-accounting/), and see [all compliance topics](https://www.erpbahrain.com/compliance/). Checked against official sources on 2026-10-09. Source links are listed on this page. Rules change, so check the latest notice from the Labour Market Regulatory Authority (LMRA) and your bank before filing. Verified ## What the Official Sources Say - Law 36/2012 Art 40: wages are paid in Bahraini currency (foreign currency by agreement), on a working day, and monthly-paid workers are paid at least once a month. - Art 46: an employer is discharged of the wage only if the worker signs a payment register, payroll or receipt, or the wage is transferred to a bank at the worker's request. - Art 44: loan deductions are capped at 10% of wage (up to 25% for housing loans with written consent); Art 45: attachment or assignment is limited to 25% of wage, up to 50% for alimony. - Art 54: overtime is paid at wage plus at least 25% for day hours and at least 50% for night hours; Art 57(b): work on the weekly rest day is paid at 150%. - Art 40(c): delayed wages attract compensation at 6% per annum up to six months, rising 1% per month thereafter to a maximum of 12% per annum. In Practice ## What This Means for Your ERP - Configure deduction rules with caps: loans 10% (25% housing with consent), attachments 25% (50% alimony). - Set overtime multipliers of 1.25 day, 1.5 night and 1.5 for rest-day work as the minimum defaults. - Keep an auditable wage payment record per employee and period, as the law and LMRA guidance both stress payment records. Sources ## Official Sources - [Law No. 36 of 2012 - Labour Law for the Private Sector (LMRA-hosted English text)](https://www.lmra.gov.bh/files/cms/shared/file/labour%20law.pdf) - [LMRA - Wages and Indemnity booklet](https://www.lmra.gov.bh/files/cms/shared/wt-a6-booklet-wages-and-indemnity.pdf) Checked on 2026-10-09. Records ## Records Involved Payroll Payslips affects how records are captured, approved and reported in your ERP. The rules come from the Labour Market Regulatory Authority (LMRA) and your bank; this page only describes how a system can be set up to support them. - Earnings and deductions - Leave and overtime - Employer contributions - Delivery records Controls ## Controls and Evidence **Controls and evidence** | Control | Evidence to keep | | Payslips match payroll results | Approval record, report or screenshot with date | | Access is limited to the employee and HR | Approval record, report or screenshot with date | | Corrections create adjustments, not edits | Approval record, report or screenshot with date | | Language and layout are reviewed | Approval record, report or screenshot with date | Configuration ## Settings to Review Settings to review during implementation. Exact names differ by platform. - Payslip template - Component labels - Delivery method - Access rules Setup ## How to Set Up Payroll Payslips in an ERP **Setup steps** | Step | What to do | | 1. Confirm | Confirm the current requirement for payroll payslips with the Labour Market Regulatory Authority (LMRA) and your bank | | 2. Map records | Map earnings and deductions, leave and overtime, employer contributions to ERP fields | | 3. Configure | Set up payslip template, component labels, delivery method | | 4. Add controls | Enable the controls above, with approvals and logging | | 5. Test | Run the scenarios below with sample data and compare with expected results | | 6. Document | Record settings, owners and the review rhythm, then train users | Testing ## Test Scenarios Before Go-Live **Test scenarios** | Scenario to test | Expected result | | Try to break this control: payslips match payroll results | The system blocks or flags it, and the attempt is logged | | Try to break this control: access is limited to the employee and HR | The system blocks or flags it, and the attempt is logged | | Try to break this control: corrections create adjustments, not edits | The system blocks or flags it, and the attempt is logged | | Try to break this control: language and layout are reviewed | The system blocks or flags it, and the attempt is logged | | Run the process end to end with sample data | Reports reconcile with the transactions entered | Avoid ## Common Mistakes These are the mistakes we see most often when payroll payslips is configured in an ERP system. - Copying settings from another company without checking them - Allowing manual journals or edits after the period is closed - Leaving master data incomplete, then fixing it in reports - No named owner for reviewing exceptions each month - Not retesting after a system upgrade or rule change FAQ ## Compliance Questions - Where do these requirements come from? From official publications of the Labour Market Regulatory Authority (LMRA) and your bank, linked on this page - Who sets the rules for payroll payslips? The rules come from the Labour Market Regulatory Authority (LMRA) and your bank. Always check current official sources. - What records are involved in payroll payslips? Earnings and deductions, Leave and overtime, Employer contributions, Delivery records. - Can BAHRAIN ERP configure our system once rules are confirmed? Yes. We configure and test the system against the requirements your adviser confirms. - What do the official sources say about payroll payslips in Bahrain? Law 36/2012 Art 40: wages are paid in Bahraini currency (foreign currency by agreement), on a working day, and monthly-paid workers are paid at least once a month. Art 46: an employer is discharged of the wage only if the worker signs a payment register, payroll or receipt, or the wage is transferred to a bank at the worker's request. Art 44: loan deductions are capped at 10% of wage (up to 25% for housing loans with written consent); Art 45: attachment or assignment is limited to 25% of wage, up to 50% for alimony. - Which records does payroll payslips involve in an ERP? Earnings and deductions; Leave and overtime; Employer contributions; Delivery records. - Which ERP controls support payroll payslips? Payslips match payroll results; Access is limited to the employee and HR; Corrections create adjustments, not edits; Language and layout are reviewed. - Which ERP settings should be reviewed for payroll payslips? Payslip template; Component labels; Delivery method; Access rules. Have More Questions? Book A Free Consultation [ Talk to Us ](https://www.erpbahrain.com/contact.html) Or, Email us at contact@erpbahrain.com ## Related Pages - [Payroll Payslips guide](https://www.erpbahrain.com/compliance/payroll-payslips/) - [All compliance topics](https://www.erpbahrain.com/compliance/) - [Bahrain Payroll Payslips: ERP Control Checklist](https://www.erpbahrain.com/compliance/payroll-payslips/erp-controls/) - [Bahrain Payroll Payslips: System Configuration Requirements](https://www.erpbahrain.com/compliance/payroll-payslips/system-configuration/)