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๐Ÿงฎ ๐Ÿ‡ง๐Ÿ‡ญ Gross to Net Payroll โ€” Bahrain (PYBH) | SAP ECP

Module: PYBH | Molga: 99 | Currency: BHD | Group: GCC
Includes: SIO (Social Insurance) | WPS (CBB) | EOSB | No income tax | Expat 3% ER levy

๐Ÿงญ The Gross-to-Net Pipeline

Gross Pay (/101) โ†’ SIO EE (nationals only) โ†’ NET PAY (/560)
Bahrain has no income tax. SIO applies to Bahraini nationals: 7% EE + 12% ER. Expats: 3% ER levy only.

๐Ÿ“Œ Bahrain Payroll Configuration Anchors

  • No income tax
  • SIO (Social Insurance Organisation): Bahraini nationals 7% EE + 12% ER
  • Expat ER levy: 3% of basic salary (employer only)
  • EOSB: 15 days/year (1โ€“3 yrs); 1 month/year thereafter
  • WPS: CBB (Central Bank of Bahrain) Bahrain WPS โ€” IBAN mandatory
  • Labour Law: Bahrain Labour Law 2012 (amended 2023)

๐Ÿ‘ฅ Case Studies

Parameter
Case A: Expat
Case B: Bahraini National
Case C: Manager
Nationality
Expat
Bahraini
Expat
Monthly Salary
BHD 1,200
BHD 1,500
BHD 3,500
SIO EE
0
7% = BHD 105
0
SIO ER
3% expat levy
12% = BHD 180
3% expat levy
Net Pay
BHD 1,200
BHD 1,395
BHD 3,500

๐Ÿ—๏ธ Step 1 โ€” Salary Structure & Wage Types (BHD)

Component
WT
Monthly (BHD)
Notes
Basic Salary
BH01
720
SIO EE base
Housing Allowance
BH10
300
25% of basic
Transport Allowance
BH20
120
Flat
Other Allowance
BH30
60
ใ…ค
GROSS /101
ใ…ค
1,200
ใ…ค

๐Ÿ”ข Step 2 โ€” SIO Calculation

Bahraini National:
  • Base: basic salary only
  • EE: 7% โ†’ /3B1; ER: 12% โ†’ /3B2
Expat:
  • ER levy: 3% of basic โ†’ /3B3 (no EE deduction)

๐Ÿ”ข Step 3 โ€” EOSB

Service
Formula
1โ€“3 years
15 days ร— (basic/30) ร— years
3+ years
1 month ร— years

๐Ÿ”ข Step 4 โ€” Net Pay

ใ…ค
Expat
Bahraini National
Gross /101
BHD 1,200
BHD 1,500
SIO EE /3B1
0
โˆ’105
Net /560
BHD 1,200
BHD 1,395

๐Ÿท๏ธ Key Wage Types

WT
Description
Payslip?
BH01
Basic Salary
โœ…
/101
Gross
Internal
/3B1
SIO EE 7%
โœ…
/3B2
SIO ER 12%
Informational
/3B3
Expat ER Levy 3%
Internal
/560
Net Pay
โœ…

SuccessLabs Academy | SAP ECP Bahrain Payroll (PYBH) | Gross-to-Net Playbook