Release 380: New option 'Entered amount' for components affect pension contribution (Middle East legislation)
SE17AE Payroll Middle East
Menu path: Payroll/Components/Maintain/Extra
data tab
Background
Prior to Release 380, the pension contribution was
always depends on the sum of the calculated amount of the following
components:
- Base salary
- Earning affect pension
- Earning affect pension and provident
fund
- Deduction affect pension
- Deduction affect pension and provident
fund
Based on
the latest requirement from Saudi Arabia, the pension contribution may either depends on
the sum of the defined amount or the sum of calculated amount of the
above components. Therefore, new option: Entered amount is now added at
Extra data of the above components.
What has been changed
A new option: Entered amount is now added at
Extra data of the components affect pension contribution as stated above.
By selecting this option, the pension calculation will depends on the defined
amount for each resource components. However, if this option is unchecked, the
calculated amount for each resource components will be taking into pension
calculation. By default, this option is always unchecked.
Screen example
New option: Entered amount at Extra
data tab for components affect pension contribution
Calculation example
|
Case 1 - Unchecked option:
Entered amount |
| Steps:
Create the following components:
- Basic salary (Type: Base salary;
Payment period: Monthly; Source: Contract; Amount:
4000; Prorated by Calendar day; Entered amount:
NO)
- Daily allowance (Type: Earning
affect pension; Payment period: Monthly; Source: NA;
Amount: 150 Quantity: 2.0 Entered amount:
NO)
- Deduction (Type: Deduction affect
pension; Payment period: Monthly; Source: NA;
Amount: 55 Quantity: 0.5 Entered amount:
NO)
- Pension paid by employee (Type:
Pension/ Social insurance paid by employee; Payment period:
Periodically; Calculation method: Percentage; Percentage:
9%)
- Pension paid by employer (Type:
Pension/ Social insurance paid by employer; Payment period:
Periodically; Calculation method: Percentage; Percentage:
9%)
Create a resource with employment start date
01 January 2006
Link the above 5 components to the
resource
Process payroll for this
resource |
Result:
Base salary = 4000.00
Daily allowance = 300.00
Deduction = 27.50
Pension paid by employee
=
[(Base salary +
Daily allowance - Deduction) x 9%]
= [(4000.00 + 300.00 - 27.50) x
9%]
= 384.53
Pension paid by employer
=
[(Base salary
+ Daily allowance - Deduction) x 9%]
= [(4000.00 + 300.00 - 27.50) x
9%]
= 384.53 |
|
Case 2 - Checked option:
Entered amount |
| Steps:
Create the following components:
- Basic salary (Type: Base salary;
Payment period: Monthly; Source: Contract; Amount:
4000; Prorated by Calendar day; Entered amount:
YES)
- Daily allowance (Type: Earning
affect pension; Payment period: Monthly; Source: NA;
Amount: 150 Quantity: 2.0 Entered amount:
YES)
- Deduction (Type: Deduction affect
pension; Payment period: Monthly; Source: NA;
Amount: 55 Quantity: 0.5 Entered amount:
YES)
- Pension paid by employee (Type:
Pension/ Social insurance paid by employee; Payment period:
Periodically; Calculation method: Percentage; Percentage:
9%)
- Pension paid by employer (Type:
Pension/ Social insurance paid by employer; Payment period:
Periodically; Calculation method: Percentage; Percentage:
9%)
Create a resource with employment start date
01 January 2006
Link the above 5 components to the
resource
Process payroll for this
resource |
Result:
Base salary = 4000.00
Daily allowance = 300.00
Deduction = 27.50
Pension paid by employee
=
[(Base salary
+ Daily allowance - Deduction) x 9%]
= [(4000.00 + 150.00 - 55.00) x
9%]
= 368.55
Pension paid by employer
=
[(Base salary
+ Daily allowance - Deduction) x 9%]
= [(4000.00 + 150.00 - 55.00) x
9%]
= 368.55 |
Related topics
| Main Category: |
Support Product Know How |
Document Type: |
Release notes detail |
| Category: |
Release Notes |
Security level: |
All - 0 |
| Sub category: |
Details |
Document ID: |
14.969.888 |
| Assortment: |
Exact Globe
|
Date: |
10-05-2017 |
| Release: |
380 |
Attachment: |
|
| Disclaimer |