Aqid ERPWho must pay through the WPS
Resolution No. 22 of 2021 requires every employer to pay its employees' wages through payment methods offered by institutions licensed by the Central Bank of Bahrain. It was phased in by the number of workers:
| 500 workers or more | From 1 May 2021 |
|---|---|
| 50 to 499 workers | From 1 September 2021 |
| 1 to 49 workers | From 1 January 2022 |
What changed in 2026: the enhanced WPS
On 21 October 2025 the LMRA launched the enhanced WPS. The employer submits the payroll file through the LMRA's Expat Management System (EMS), then approves it through its bank's channel, which makes the salary transfer.
Each employer has one Wage Responsible Person. The employer can take the role or authorise someone, who accepts it in EMS. The Wage Responsible Person and every authorised user need an Advanced eKey to use the system.
The deadlines
- The LMRA's October 2025 guideline set three steps: from October 2025, the system without penalties, for employers to correct their records; from January 2026, every employer to pay wages through it; from February 2026, no LMRA transactions for an employer that does not.
- The LMRA's own FAQ says the mandatory date will be announced through its official channels. The two do not agree, so check the LMRA's latest notice before you rely on either.
- Wages themselves fall due on the dates the Labour Law and the employment contract set; the WPS checks that they are paid.
What employers must keep
- A bank account for every worker registered to the establishment, Bahraini or expatriate, with a bank or financial institution licensed by the Central Bank of Bahrain.
- The establishment's own account with a bank registered under the WPS. Confirm this with your bank before the next payroll.
- Justifications and supporting documents for any month in which a salary was not paid or only partly paid. These are submitted through the WPS portal.
- Each month's payroll, with the wage file uploaded and the payment made, so the three can be matched if the LMRA asks.
What non-compliance costs
The LMRA says that not paying wages through the system is a violation of the law, subject to the measures the law prescribes. Its guideline adds that an employer who does not comply cannot submit transactions to the LMRA; work permits are LMRA transactions, so this can hold up applications and renewals. The LMRA does not publish fine amounts for it.
How Aqid ERP helps
Aqid ERP runs Bahraini payroll monthly in BHD to three decimals, with SIO contributions by nationality, the leaving indemnity under article 116 and payslips in Arabic and English. Every run posts to the ledger, so the salaries in the books are the ones you paid.
Aqid ERP does not yet produce a WPS salary file for Bahrain. Net pay is posted and exported, and you prepare and upload the wage file on the LMRA WPS portal. Have a payroll adviser check your first run.