Oracle fusion hrms_for_uae_payroll_setup_white_paper_rel11

An Oracle White Paper

March 2016

Oracle Fusion HRMS (United Arab Emirates): Payroll Implementation and Functional Considerations

Oracle Fusion HRMS (UAE): Payroll Implementation and Functional Considerations

Disclaimer

The following is intended to outline our general product direction. It is intended for information purposes only,

and may not be incorporated into any contract. It is not a commitment to deliver any material, code,

or functionality, and should not be relied upon in making purchasing decisions. The development, release,

and timing of any features or functionality described for Oracle’s products remains at the sole discretion

of Oracle.


Introduction ................................................................................................................................. 1

What’s in this Document.......................................................................................................... 1

Other Information Sources ...................................................................................................... 1

Document Updates ................................................................................................................. 2

Comments and Suggestions ................................................................................................... 2

Payroll Data ................................................................................................................................ 3

Person and Employment Payroll Data ..................................................................................... 3

Calculation Cards .................................................................................................................... 5

Statutory Deductions and Gratuity Calculation .......................................................................... 16

Social Insurance Calculation ................................................................................................. 16

Social Insurance Calculation for GCC citizens ...................................................................... 18

Gratuity Calculation ............................................................................................................... 20

Monthly Gratuity Accrual ....................................................................................................... 23

Elements ................................................................................................................................... 23

Element Classifications ......................................................................................................... 24

Element Templates ............................................................................................................... 27

Elements: Allowances, Unpaid Leave and Loans .................................................................. 30

Gratuity Payment Element .................................................................................................... 44

Salary Basis and Additional Allowance Elements .................................................................. 45

Auto Indirect Elements and Creation of Element Eligibility .................................................... 47

Proration and Retroactivity .................................................................................................... 48

Balances ................................................................................................................................... 52

Balances Definitions predefined for UAE ............................................................................... 52

Balances and SOE ................................................................................................................ 56

Payroll Set up............................................................................................................................ 59

Payments Setup .................................................................................................................... 60

Consolidation Groups and Payroll Definitions ........................................................................ 64

Payroll Definitions ................................................................................................................. 65

Salary Basis and Compensation ........................................................................................... 68

Currency Conversion Rates .................................................................................................. 70

Hiring an Employee and Running Payroll for UAE: Worked Example ........................................ 73

Hire an employee .................................................................................................................. 73

Assign additional information ................................................................................................ 76

Run Payroll and Review Results ........................................................................................... 82

Government Sector Employees............................................................................................. 85

Mandatory Post-Payroll Processes ........................................................................................... 87

Calculate Prepayments ......................................................................................................... 87

Archive Periodic Payroll Results ............................................................................................ 88

Payments Processing and Payslip ............................................................................................ 91

Payments Processing ........................................................................................................... 91


Payslip .................................................................................................................................. 96

Roll Back Process ............................................................................................................... 100

Monthly Reports ...................................................................................................................... 102

Form 1 ................................................................................................................................ 102

Form 6 ................................................................................................................................ 106

Form 7 ................................................................................................................................ 108

Monthly Contributions – Private Sector ............................................................................... 110

Monthly Contributions – Government Sector ....................................................................... 113

Wage Protection System: Salary Information File................................................................ 116

Emirati IPE Consolidated Report ......................................................................................... 117

Payroll Validation Report ..................................................................................................... 120

Disabled Workers Report .................................................................................................... 121

Global Reports ........................................................................................................................ 123

Statutory Deductions Register ............................................................................................. 123

Payroll Register Report ....................................................................................................... 127

Payment Register Report .................................................................................................... 130

Gross-to-Net Summary Report ............................................................................................ 133

Payroll Activity Report ......................................................................................................... 137

Element Result Report ........................................................................................................ 144

Payroll Balance Report ....................................................................................................... 148

Payroll Balance Exception Report ....................................................................................... 152

Deductions Report .............................................................................................................. 156

Termination ............................................................................................................................. 160

Worked Example – Terminating an Employee ..................................................................... 161

Reverse or Correct Termination .......................................................................................... 164

Form 2 ................................................................................................................................ 164

Conclusion .............................................................................................................................. 168

Glossary.................................................................................................................................. 168

General Terminology ........................................................................................................... 168


1

Introduction

This paper identifies and describes payroll setup tasks for Oracle Fusion Human Resources Management System

(HRMS) for the United Arab Emirates (UAE).

What’s in this Document

This document is intended to support the implementation team in understanding:

UAE-specific payroll data that needs to be provided.

UAE statutory deductions calculations and set up needed at implementation level.

UAE predefined element templates and set up that needs to be done when creating customer specific elements.

UAE-specific predefined balances and how these can be fed by customer specific elements.

UAE-specific considerations for proration, retroactivity and terminations.

The base set up that needs to be done to execute a UAE payroll and prepare payment file and payslip.

The post-payroll processes that can be executed for UAE.

UAE predefined setup for SOE online results viewing and impact on customer created balances.

The migration process from a legacy system, by identifying UAE-specific fields that need to be populated by

such migration.

Note: Flexfields described in this document are Developer Descriptive Flexfields (DDF) that must not be

customized at an implementation level. Customer Descriptive Flexfields (DFF) are the fields delivered by the

product that are meant to be used for customization during implementation.

This documentation may also be beneficial to end users who run application processes after implementation.

Note: This document should not be considered a comprehensive guide for payroll implementations. The focus of

this document is UAE-specific processes and information. For information about generic tasks, the

implementation team should refer to documentation listed in the following section.

Note: Before running payroll for UAE, Human Resources needs to be implemented for the country itself. For this

task refer to the HR Implementation and Functional Considerations guide for UAE, listed in the following section.

Other Information Sources

Oracle Fusion Workforce Deployment Implementation Guide: http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm

Oracle Fusion HRMS (UAE): HR Implementation and Functional Considerations Guide:

https://support.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1565436.1

Oracle Fusion Global Payroll User Guide:

http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf

http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm

https://support.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1565436.1

http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf


2

Document Updates

This document is based on the most current application release as of the document’s publication date. Content is

updated as needed only to reflect major changes to existing features or when significant new features are added to

the UAE localization. For this reason, it is possible that some minor UI differences may exist between the version

being implemented and the version described in this document.

Change Record

Date Version Change Reference

17-July-2015 1.1 Document updated for Release 10 Features. Included and updated sections:

Calculation Cards

Monthly Gratuity Accrual

Emirati IPE Consolidated Report

Payroll Balance Exception Report

Deductions Report

05-Nov-2015 1.2 Document updated for Release 10 Patch Bundle Features. Included and updated sections:

Calculation Cards

Social Insurance Calculations

Monthly Reports

05-Feb-2016 1.3 Document updated for Release 11 Features. Included and updated sections:

Abu Dhabi Retirement Pensions and Benefits Fund

(ADRPBF)

Payroll Definitions

Payroll Validation Report

Disabled Workers Report

Reverse or Correct Termination

Comments and Suggestions

Your comments are important to us. We encourage feedback about Oracle Fusion Applications Help and guides.

Please send your suggestions to: [email protected].

You may also use the Send Feedback to Oracle link in the footer of Oracle Fusion Applications Help.

mailto:[email protected]


3

Payroll Data

Person and Employment Payroll Data

For a person to be processed in payroll a payroll relationship must be defined for the same. This section describes

specific requirements for UAE in terms of payroll relationships including the UAE-specific information needed for

payroll that must be captured in the employment and payroll relationship data

Payroll Relationships, Terms and Assignments

Payroll Relationship represents the relationship of the person with the Payroll Statutory Unit (PSU). This varies

from country to country, but essentially no balance aggregation is performed above this level for a person.

Each country defines the person types for which a payroll relationship is created. In general, to be processed in

payroll, a person must have a person type of Employee, Contingent Worker or Beneficiary.

In UAE, the payroll relationship type Standard is used for person type Employee.

You can also create a payroll relationship for other person types such as contingent worker and nonworker.

If the nonworker type is NonWorker Paid, the payroll relationship is Standard.

If the nonworker type is NonWorker, the payroll relationship must be of type Element Entries Only.

If the nonworker type NonWorker Unpaid, no payroll relationship is created.

For contingent workers the payroll relationship is of type Element Entries Only.

For UAE, a single payroll relationship is created per relationship type. In case of rehire, the employee is treated as a

new employee and so there is only one payroll relationship per person. For UAE, the payroll relationship rule

Continuous Period of Service (C) is predefined.

Note: Payroll relationship rule Continuous Period of Service (C) implies that when the HR user creates a new

Work Term, a check is made for a Payroll Relationship of the same type and PSU. If one exists, the LSED of the

payroll relationship will be validated. If it is greater than the Term start date, the Work Term will be attached to it.

If it is less than the Term start date, a new Payroll Relationship will be generated. If one does not exist, a new

Payroll Relationship will be generated. When a Work Term is terminated, if it is the last active Work Term

associated with the Payroll Relationship, the Payroll Relationship will also be terminated.

Note: You can find the predefined data for legislation rules in the Oracle_Fusion_HRMS_UAE_Payroll_Data.xls

on My Oracle Support (MOS).

UAE has a requirement to handle multiple assignments within a legal employer. A person may have multiple

assignments within different terms. Possible valid combinations are:

1 Payroll Relationship – 1 Term – 1 Assignment

1 Payroll Relationship – 1 Term – n Assignments

1 Payroll Relationship – n Terms – n Assignments

Social insurance deduction is calculated at payroll relationship level. Earnings related to social insurance are

considered at all the three levels, that is, Relationship, Terms, and Assignments.


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UAE-specific data must be captured at a payroll relationship level and the calculation of some country specific

allowances is derived from this. To capture this information, four flexfields are enabled for the UAE at the payroll

relationship level:

Note: The additional information section includes the attributes “Ministry of Labour Employee ID” and “WPS

Account Number” which are required for the Wage Protection System statutory report.

If data is migrated from a legacy system, this UAE-specific field must be populated. The following table shows the

attributes of this flexfields for record PAY_PAY_RELATIONSHIPS_DDF

(DESCRIPTIVE_FLEX_CONTEXT_CODE = AE):

TABLE 1. PAYROLL RELATIONSHIP DATA FLEXFIELDS UAE

APPLICATION_COLUMN_NAME END_USER_COLUMN_NAME LOOKUP DESCRIPTION

REL_INFORMATION1 ACCOMMODATION_PROVIDED HRC_YES_NO Accommodation Provided

REL_INFORMATION2 TRANSPORTATION_PROVIDED HRC_YES_NO Transportation Provided

REL_INFORMATION3 ORA_HRX_AE_MOL_EMPLOYEE_ID ORA_HRX_AE_NUM_14 Ministry of Labour Employee ID

REL_INFORMATION4 ORA_HRX_AE_WPS_ACCOUNT_NUMBER ORA_HRX_AE_NUM_16 WPS Account Number

Contract Data

Contract data must be captured for every payroll relationship, which also affects gratuity processing. For this

reason, it is strongly recommended that UAE payroll customers use the 3-tier employment model. If there is no

requirement to have multiple terms and multiple assignments, the 2 tier – single contract – single assignment

employment model can also be used.

The UAE has the following 2 contract types:

Fixed Contract

Unlimited Contract

The flexfield Employment Status is enabled to capture UAE specific contract details.


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If data is migrated from a legacy system, this UAE-specific field must be populated. The following table shows the

attributes of this flexfields for record PER_CONTRACT_LEG_DDF

(DESCRIPTIVE_FLEX_CONTEXT_CODE = AE):

TABLE 2. CONTRACT DATA INFORMATION FLEXFIELDS UAE

APPLICATION_COLUMN_NAME END_USER_COLUMN_NAME LOOKUP DESCRIPTION

CTR_INFORMATION1 EMPLOYMENT_STATUS HRX_AE_EMPLOYMENT_STATUS Employment Status

Calculation Cards

Calculation cards functionality is used to capture data needed for payroll processing that cannot be captured in

global fields. These cards are used to capture data at the organization level as well as the person level.

The UAE localization provides two predefined cards at the payroll statutory level (PSU). These are:

Employer Social Insurance Details

Employer Gratuity Details

At the person level, there are two predefined cards:

Employee Social Insurance Details card

End of Service Details card

The flexfield structure used to store information entered in the calculation cards is described in

Oracle_Fusion_HRMS_UAE_Payroll_Data.xls on My Oracle Support (MOS).

Employer Social Insurance Calculation Card

The employer social insurance details card uses the following information for social insurance calculation at the

legal entity level:

Employer Sector: The employer sector can be either government sector or private sector. The deduction

rules are applied based on the type of sector you choose.

Employer Number: The two digit number is issued by the Social Insurance Office to Government

Agencies and is used in the Monthly Contribution – Government Sector statutory report.

Contributory Salary Reference Formula: You can define the formula that calculates the contributory

salary at the legal entity level. The contributory salary value is derived from this formula and is used as the

reference value for social insurance calculation. This formula must have the value returned using variable

CONTRIBUTORY_SALARY_REFERENCE. This is only used in the private sector. For additional

details on the calculation, refer to the section on social insurance calculation.


6

Social Insurance Fund Type: The social insurance fund type (Applicable to Release 10 and later) can be

either Abu Dhabi Retirement Pensions and Benefits Fund or General Pension and Social Security

Authority. The deduction rules for social insurance are applied based on the social insurance fund type.

Note: You cannot change the fund type, if the payroll is processed for the payroll statutory unit.

To enter or modify this information:

1. Sign in to the Oracle Fusion application using a role that has the profile of a superuser and privileges to create all organizational structures:

2. Select Setup and Maintenance from the Navigator:

3. Navigate to task Define Legal Entities for Human Capital Management:


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4. Select the legal entity through Selected Scope, for which data needs to be added and select task Manage Legal Entity Calculation Cards:

5. Select the Employer Social Insurance Details Card from the given list. If no card exists, click Create. Select

the Employer Social Insurance Details and click Continue. The Manage Calculation Cards page appears:

6. Enter required details in the Payroll Statutory Unit Social Insurance Details:


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Employer Gratuity Details Card

The gratuity card contains the payroll statutory unit (PSU) gratuity details and uses the following information for

gratuity calculation at the legal entity level:

Calculation Basis: The amount of gratuity is based on the salary per day of the employee which will

differ based on whether you choose fixed or actual calculation basis. For gratuity calculation, the monthly

salary is converted to annual salary. This amount is divided by the number of days in a year. The actual

calculation basis uses 365 days in a year whereas the fixed calculation basis uses 360 days.

Salary Formula: You must define your own salary formula for gratuity calculation. Once you have

defined the salary formula, you can select it here. The formula must return the values using variable

MONTHLY_SALARY. Additional details on the calculation are provided in the section on gratuity

calculation.

Reference Formula: You can define your own reference formula to calculate the paid gratuity amount

and select it here. The formula must return the values using variable PAID_GRATUITY. This overrides

the amount calculated by the default reference formula in the End of Service Details card in the gratuity

details calculation component, and will be used as the Maximum Gratuity Accrued at the Payroll Period

End Date in the Monthly Gratuity Accrual calculation.

To enter or modify this information:

1. Follow steps 1-5 used for employer social insurance details card.

2. Select the Employer Gratuity Details:

3. Enter required details in the Payroll Statutory Unit Gratuity Details:


9

Person Social Insurance Calculation Card

The calculation component on the employee social insurance card corresponds to the social insurance contribution

payroll deduction element, defined at the legislative level. The employee social insurance component details section

captures additional information used to calculate the deduction. When the employee social insurance calculation

card is created, the social insurance calculation component and the social insurance calculation components details

record are automatically created. You can create additional calculation component details such as Social Insurance

Contributory Salary Override and Social Insurance Contributory Salary Adjustment Amount.

The social insurance card is automatically created when the new hire process for an employee is completed,

provided the employee citizenship information is specified. If the citizenship information is not specified, then the

social insurance card must be created manually for this employee.

For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle Fusion Payroll or

Payroll Interface.

To enter this information:

1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager:

2. Select Payroll Calculations task from the Navigator:


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3. Navigate to Manage Calculation Cards task and select the person for whom you want to review the calculation card:

4. Select the Employee Social Insurance Details Card from the given list. The Manage Calculation Cards page

appears:

Note: If no card exists, select Create and create the calculation card manually. 5. Enter details or edit the Employee Social Insurance Details:


11

Note: For the UAE localization, you must associate the social insurance card to a person for running the payroll.

Consider the following points when entering the data:

Citizenship: Social insurance deductions are processed only for the Gulf Cooperation Council (GCC)

citizens. You must specify the citizenship of the employee as the social insurance card will be processed

based on this information.

Method of Obtaining Nationality: This information is used for reporting purposes. The method of

acquiring nationality could be by birth, residence, marriage or any other factor.

Date of Acquiring Nationality: The date of acquiring nationality cannot be earlier than the person's date

of birth.

Exception Type: Social insurance deductions are processed based on the exception type:

Employee pays both employer and employee contributions

Employer pays both employee and employer contributions

Employer pays contribution monthly and employee pays later

Depending on the selected exception type, the employee or the employer pays the contributions. If no

value is specified, then the employer and the employee each pay their contributions.

Registered for Social Insurance: The label for this field has been changed from Registered for Social

Insurance to Registered for Social Insurance or Pension from Release 10. This checkbox indicates

whether to process social insurance calculations for employees. For employees who are Emirati citizens

and have their Social Insurance Numbers specified during the new hire process, this checkbox is selected

automatically indicating that social insurance calculations must be processed. For employees who are

non-Emirati citizens, this checkbox remains unselected indicating that social insurance calculations will

not be processed. Employees registered for social insurance are not eligible for gratuity or monthly

gratuity.


12

Paid from another Government Sector: Select this checkbox to specify if the employee receives

additional pay from another government sector organization. You can select the checkbox by editing the

automatically created card.

Sector or Department Name: This is a free text field. This does not affect the social insurance

calculation, but used for reporting purposes.

Exempt from SI Contribution Difference: This checkbox indicates whether to process the difference

in the employer's subscription. The employee will normally pay the difference in the contribution unless

the flag is set and the Country of Citizenship has agreed to pay the difference on behalf of the employee.

Country of Citizenship Pension: This checkbox indicates whether or not an employee is receiving a

pension from their country of citizenship. This does not affect the social insurance calculation, but used

for reporting purposes.

6. Enter Override or Adjustment amounts:

To enter the employee social insurance contributory salary override or adjustment amounts, you must manually

create the calculation component details. Click Create to create the calculation component details and enter the

required information:


Social Insurance Contributory Salary Override: You can additionally create the calculation component details for Social Insurance Contributory Salary Override, if applicable. You use the


13

override amount to specify a social insurance contribution amount that is different from the social insurance balance, or the amount derived from the reference formula at the legislative level. This is applicable only for the private sector employees and is processed just in the first month of joining or in the month of January every year. This amount, if specified, is applicable for the whole year.

Social Insurance Contributory Salary Adjustment: You can additionally create the calculation component details for Social Insurance Contributory Salary Adjustment Amount, if applicable. You use the adjustment amount to make any changes to the social insurance contributory salary amount. This is only applicable for private sector employees and can be specified any time during the year.

7. Click the Associations tab to ensure that the calculation card is associated with the appropriate TRU and Employment Terms:

Note: The calculation card is associated automatically to the appropriate TRU and Employment Terms.

End of Service Details Calculation Card

The component in the End of Service Details card corresponds to the payroll element gratuity contribution,

defined at the legislative level. This card captures additional information related to gratuity and end of service

details.

The End of Service Details card has two main components:

Gratuity details

End of Service details

Gratuity Details

When you create the End of Service Details card, the gratuity details component and components details record is

created automatically. The gratuity details component is used to enter data that impacts the calculation of gratuity

payment.

On termination, you can enter an override amount to be paid to the employee as gratuity. This amount overrides

the gratuity amount calculated using the reference formula defined at the payroll statutory unit level and the

legislative level formula calculation.

For example, if the primary term is a fixed contract type and the subsequent terms are unlimited, then the amount

of gratuity calculated is based on fixed contract type instead of reduced amount for the unlimited contract. In this

case, you can enter an override amount at the payroll relationship level.


14

Gratuity card is created automatically upon employee termination, provided the Registered for Social Insurance

checkbox is unselected for the employee. When the gratuity card is created, the gratuity component, component

details, and the association are automatically created.

The automatic card creation is enabled only if the Payroll Product Usage is set to Oracle Fusion Payroll or Payroll

Interface.

As workers registered in the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) are not eligible for

end of service payments there will be no automatic card creation if the Social Insurance Fund Type is ADRPBF.

This is applicable from Release 10 onwards.

End of Service Details

You use the End of Service Details card to specify whether the employee wants to claim the end of service

remuneration or pension from the social insurance office. In this card, you can also specify the bank information

where the payment has to be made.

The end of service details component is used mainly for reporting purposes in the Form 2 and submitted to the

social insurance office.

To enter this information:

1. Follow steps 1-4 used for employee social insurance details card.

2. Enter or edit the required information:

3. Click Create to create the calculation component details and enter the required information in the Override

Amount field:


15

Note: To enter the gratuity details override amount, you must manually create the calculation component details.


Override Amount: You can enter an override amount to be paid to the employee as gratuity. If

override amount is specified, this amount overrides the reference formula for gratuity calculation

defined at the PSU level, and also the calculation formula defined at legislative level.

4. To create End of Service Details calculation component details, click Create and select End of Service Details:


End of Service Remuneration or Pension: used to specify whether the employee wants to claim

the end of service remuneration or pension from the social insurance office.

Bank Name, Branch, Account Number: bank information where the payment must be made.

5. Click the Associations tab to ensure that the calculation card is associated with the appropriate TRU and Employment Terms:

Note: The calculation card is associated automatically to the appropriate TRU and Employment Terms.


16

Statutory Deductions and Gratuity Calculation

The data entered at the TRU level and at the person level are the starting point for calculating statutory deductions

and gratuity payment, if applicable.

Based on legislative requirements UAE localization has predefined a setup with the parameters to be used in the

calculation. These parameters are stored in the legislative repository for calculation information.

Social Insurance Calculation

Social Insurance calculations differ based on the fund type specified in the Employer Social Insurance Card.

The two types of calculations are:

General Pension and Social Security Authority (GPSSA)

Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF)

General Pension and Social Security Authority

Social insurance is applicable to all Emiratis who work in the UAE and are paid there. This contribution is

normally paid both by the employer and the employee, but there are some exceptions to this behavior that can be

defined at the person social insurance calculation card level.

Contributions are calculated as percentages of a contributory salary. The contributory salary components are

elements like basic compensation, accommodation and transport allowances. The legislation determines which

elements are liable to social insurance contributions, whereas the amounts and definitions of the same depend on

the employer’s regulations.

For private sector employees:

The amount of the contributory salary can be overridden at the person level.

If this amount is not entered at the individual level, you can define a formula used to calculate the

contributory salary at the legal employer level.

Finally, if neither individual override, nor legal employer formula, are defined, the contributory salary uses

the value of earnings elements that are subjected to social insurance. These elements are identified

through secondary classification and feed the balance Subject to Social Insurance. Further details on

how UAE has defined element classifications and balances can be found in the related sections.

The contributory salary is set once a year in the first payroll run of the year. If there is a need to correct the contributory salary that has already been set, then you can use the Social Insurance Contributory Salary Adjustment component of the Employee Social Insurance Details calculation card. The contributory salary will be modified in the next, normal, payroll run.

The contributory salary has a monthly minimum value and a monthly ceiling. This means that if the

monthly social insurance income is lower than the minimum value, contributions are calculated on the

minimum value. If the monthly social security income exceeds the monthly ceiling, contributions are due

just on the part up to the ceiling. For the UAE, a minimum monthly contributory salary of 1000 AED

and monthly ceiling of 50000 AED are predefined.

For Private Sector, the employee contribution is 5% and employer contribution is 12.5%. But if the

exception type is Employee pays both contributions, then system adds a private sector subsidy in

Employer contribution (12.5% + 2.5% =15%).


17

If the employee’s payroll relationship is terminated in the month, no contribution is deducted. If termination

date is end of the month the full contribution is deducted.

For the government sector:

The contributory salary uses the value of earnings elements that are subjected to social insurance. These

elements are identified through secondary classification and feed the balance Subject to Social

Insurance.

For Government Sector, the employee contribution is 5% and the employer contribution is 15%.

There is no floor or ceiling limit to the contribution salary.

Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF):

All Abu Dhabi based private employers and the majority of government sector organizations are under the

authority of the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF). This contribution is normally

paid both by the employer and the employee, but there are some exceptions to this behavior that can be defined at

the person social insurance calculation card level.

Contributions are calculated as percentages of a contributory salary. The contributory salary components are

elements like basic compensation, accommodation and transport allowances. The legislation determines which

elements are liable to social insurance contributions, whereas the amounts and definitions of the same depend on

the employer’s regulations.

For private sector employees:

The amount of the contributory salary can be overridden at the person level.

If this amount is not entered at the individual level, you can define a formula used to calculate the

contributory salary at the legal employer level.

Finally, if neither individual override, nor legal employer formula, are defined, the contributory salary uses

the value of earnings elements that are subjected to social insurance. These elements are identified

through secondary classification and feed the balance Subject to Social Insurance. Further details on

how UAE has defined element classifications and balances can be found in the related sections.

The contributory salary is set once a year in the first payroll run of the year. If there is a need to correct the contributory salary that has already been set, then you can use the Social Insurance Contributory Salary Adjustment component of the Employee Social Insurance Details calculation card. The contributory salary will be modified in the next, normal, payroll run.

The contributory salary has a monthly minimum value and a monthly ceiling. This means that if the

monthly social insurance income is lower than the minimum value, contributions are calculated on the

minimum value. If the monthly social security income exceeds the monthly ceiling, contributions are due

just on the part up to the ceiling. For the UAE, a minimum monthly contributory salary of 3000 AED

and monthly ceiling of 60000 AED are predefined.

For Private Sector, the employee contribution is 5% and employer contribution is 15%.

If the employee’s payroll relationship is terminated in the middle of a month, the contributory salary will be

calculated based on the number of calendar days in the month that the employee has worked. If the

termination date is at the end of the month, the full contribution will be deducted.

For the government sector:


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The contributory salary uses the value of earnings elements that are subjected to social insurance. These

elements are identified through secondary classification and feed the Subject to Social Insurance

balance.

For Government Sector, the employee contribution is 5% and the employer contribution is 15%.

There is no floor or ceiling limit to the contribution salary.

Social Insurance Calculation for GCC citizens

Social Insurance is now applicable to all Gulf Cooperation Council (GCC) citizens. The legislation was changed to have a reciprocal agreement between all 6 GCC countries (United Arab Emirates (AE), Kuwait (KW), Saudi Arabia (SA) Bahrain (BA), Sultanate of Oman (OM) and Qatar (QA)). Social Insurance contributions are calculated and deducted from all employees who have a GCC nationality and are working in any of the GCC countries in accordance with the Unified Law of Insurance Protection Extension.

Employee Social Insurance Calculation Card has been enhanced to capture additional information:

Whether or not it has been agreed that the country of citizenship will pay any difference in contribution

amounts.

Note: Currency Conversion Rate across the country of citizenship and country of employment needs to be

considered for SI calculation for GCC citizens working in United Arab Emirates. You must set up conversion

rates before processing SI for GCC citizens.

Social Insurance Deductions

Social insurance contribution is calculated through the deduction Social Insurance that is part of the component

group Social Insurance. Calculations are done through element Social Insurance.

To view details on component groups, calculations and elements:

1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager.

2. Navigate to task Manage Payroll Calculation Information in the Payroll Calculation work-area

3. Select SI Deduction and view the details

Legislative Repository for Calculation Information


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Parameters used in the calculation of social insurance are stored in the legislative repository for calculation

information. These parameters are predefined by the UAE localization and cannot be modified in the

implementation phase.

To view predefined parameters:

1. Log in with a Payroll Manager role.

2. Navigate to task Manage Payroll Calculation Information in the Payroll Calculation work area.

3. Select SI Deduction.

4. Open the Calculation Factors for the related element:

5. By clicking on Range Values details of the calculation factors are displayed:


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Gratuity Calculation

Persons working in UAE are entitled to an additional payment upon termination which is called Gratuity. The

entitlement to this payment is accrued during the work relationship.

Gratuity calculations are triggered only for persons who are not eligible or not registered for social insurance. The

gratuity amount to be paid is driven by UAE labor laws. If you are not following the UAE labor laws, you can

define your own formula for gratuity processing. The following two options are available: must

You can define your own formula and create a setup according to the values to be returned to you

formula run results. In such a scenario, you may not need to use the localization solution for gratuity

processing.

You can define your own reference formula gratuity processing, which substitutes the gratuity formula

defined at the legislative level. If a user-defined formula exists, then the seeded formula executes it.

The localization solution for gratuity processing uses the following rules:

The duration of service and the contract type (fixed or unlimited) determines the number of days of

gratuity payment to which the payee is entitled per year of service. These days are retrieved from the

legislative repository for calculation information. Note that the duration of service can be reduced by

unpaid or unauthorized absences. This is obtained by creating elements for Unpaid Leave classification

and attaching this element to the absence type. If an absence with this newly created absence type is

recorded, the Unpaid Leave element’s days input value will feed the Leave Without Pay balance. In the

Gratuity formula, the Leave Without pay balance is used to get the unpaid absences.

The base salary for gratuity payment is calculated through the salary formula selected at the legal employer

level.

If the person is terminated, contract type and termination initiator is checked and amount is paid:

o If termination initiator is employer, then the complete gratuity accrued is paid to the employee.

o If termination initiator is the employee, the application fetches the payment factor using the

contract type and period of service. Payment factor is available in the legislative repository for

calculation information.

Gratuity Entitlement and Payment


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Fixed Contracts

Gratuity Entitlement: An employee is entitled to 21 days salary for the first 5 years and 30 days salary for each

additional year.

Gratuity Payment: If employer terminates the employee, the employee is paid the complete gratuity that has

accrued.

If employee has resigned before the contract period, and has completed less than five years in service, the

employee is not paid gratuity. But if the employee has completed more than 5 years, then they are paid the

complete gratuity amount upon termination.

If the contract has expired and the employee has completed more than one year in service, complete gratuity

amount is paid upon termination. .

Unlimited Contracts

Gratuity Entitlement: An employee is entitled to 21 days salary for the first 5 years and 30 days salary for each

additional year.

Gratuity Payment: If employer terminates the employee, the employee is paid the complete gratuity that has

accrued.

If employee has resigned before completing one year, then no gratuity is paid. If the employee has completed

between 1 to 3 years, one-third gratuity is paid. If the employee has completed between 3 to 5 years, two-thirds

gratuity is paid. If the employee has completed more than 5 years, complete gratuity is paid

Calculation Groups and Calculations

Gratuity payment is calculated through supplemental earnings Gratuity Payment that is part of calculation group

Gratuity. Calculations are done through element created as a Gratuity Payment.

To view details on calculation groups, calculations and elements:

1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager:

2. Navigate to task Manage Payroll Calculation Information in the Payroll Calculation work-area.

3. Select GRATUITY Calculation and view the details.

Legislative Repository for Calculation Information

To view predefined parameters:

1. Log in with a Payroll Manager role

2. Navigate to task Manage Payroll Calculation Information in the Payroll Calculation work area.


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3. Select GRATUITY Calculation.

4. Open the Calculation Factors for the related element:

The calculation factors are used for calculating gratuity payments (gratuity bands represent the eligibility months).

5. Click Range Values. Details of the calculation factors are displayed:


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Monthly Gratuity Accrual

The application calculates the accrual of gratuity on a monthly basis. The amount calculated is the amount that an employee would be entitled to, if they were terminated at the end of that month and if they were eligible for payment. The monthly gratuity accrual calculation is done through the Gratuity Accrual Initiator element. The application keeps a record of the total accrued amount and the incremented accrued amount (periodic difference). User has to manually attaché the Gratuity Accrual Initiator element to the person to whom they want to calculate monthly gratuity accrual. The monthly gratuity accrual considers the following details to calculate the gratuity:

Date of termination: The current pay period end date is taken as the date of termination.

Length of service: All types of paid leave are considered to calculate the length of service. Unpaid leave is

not included.

Base Salary: The base salary for gratuity payment is calculated through the salary formula selected at the

legal employer level.

Termination Initiator: The calculation assumes the employer as the termination initiator. And the

employee is entitled to the full amount.

Probation: If the employee is on probation, the accrual amount is zero.

Contract type: The entitlement is based on Contract type and is captured on Person Management.

Note: For information on Person Management Details, refer Section Person Data Setup of Oracle Fusion

HRMS (United Arab Emirates): HR Implementation and Functional Considerations white paper.

Entitlement :

o Fixed Contract: An employee is entitled to 21 days salary for the first 5 years and 30 days salary for

each additional year.

o Unlimited Contract: An employee is entitled to 21 days salary for the first 5 years and 30 days salary

for each additional year.

Maximum Limit: The total amount accrued must not be greater than twice the monthly salary.

Monthly gratuity accrual calculations will be performed only for current employees when the Registered

for Social Insurance check box is not selected on the Employee Social Insurance Details card. If the

employee is due to be terminated during the pay period, full gratuity will be calculated instead of the

monthly accrual.

Elements

Elements are the building blocks of payroll and benefits. There is no limit to the number of elements that can be

defined. Policies or business rules that govern the allocation of these elements to workers can be specified at the

element level.

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Elements can represent:

Earnings, such as salary, wages, and bonuses

Compensation, such as employee stock purchase and insurance plans

Absences from work

Tangible items distributed to persons, such as tools, uniforms, mobile phones, or computers

Statutory deductions, such as employee taxes and social insurance

Voluntary deductions, such as loans

Involuntary deductions, such as court orders, as well as pretax deductions

Employer taxes and other employer liabilities

Elements are grouped into primary classifications, such as Earnings and Voluntary Deductions. In a human

resources department, you can use the primary classifications to identify groups of elements for information and

analysis purposes. In a payroll department, the classifications control processing, including the sequence in which

elements are processed and the balances they feed.

Oracle Fusion supplies many predefined elements (that cannot be modified at the implementation level), while

additional elements can be generated, defining certain types of compensation and payroll elements through

templates.

Element templates include the elements, balances, balance feeds, and formulas required for payroll processing.

Templates have various rules associated with them which will be used to create data based on certain criteria. The

template engine will get the values for the rules from the template and process the seeded template structure to

create appropriate data that is required.

Using the template infrastructure, UAE localization has defined its structures for creating a standard set of

elements for earnings, by modifying a global template questionnaire.

When creating an element the questionnaire that guides you through the creation depends on the classifications

selected for the element itself.

Once you complete the questionnaire and submit the process, the relevant payroll objects are generated. You now

have the ability to edit these objects (using the review pages and the object navigator) to ensure they fully meet you

business requirements.

Element Classifications

Global Payroll has defined a set of primary classifications and UAE localization has selected the ones that are

applicable for the country.

Additionally a set of secondary classifications and subclassifications have been defined specifically by the

localization.

Secondary classifications are used in the element template process to drive the questionnaire and also to

create the element with the needed characteristics.

Subclassifications are used to control balance feeds and identify a sub type of the particular classification.

All the classifications predefined for UAE are listed in the Oracle_Fusion_HRMS_UAE_Payroll_Data.xls on My

Oracle Support (MOS).

Secondary classifications and subclassifications can be created at implementation level and they do not have any

impact on the UAE predefined data.


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Primary Classifications

The following primary classifications are enabled for the UAE localization:

Absence Accruals

Absences

Balance Initialization

Direct Payments

Employer Charges

Information

Involuntary Deductions

Pre-statutory Deductions


Standard Earning

Supplemental Earnings

Voluntary Deductions

In the implementation phase, when creating an element though element template functionality, you are prompted

to select the primary classification for that element and this drives the questionnaire to use and also the

characteristics of the element that will be created.

Notes:

The subclassifications Subject to Social Insurance and Subject to Unpaid Leave are defaulted for all elements

with primary classification Standard Earning. This implies that all these elements:

o Will be part of the contributory salary

o Will not be paid in case of unpaid leave

Secondary Classifications

Secondary classifications are connected to primary classifications. The following secondary classifications have

been defined for the UAE localization:

Primary Classification Standard Earnings:

Additional Allowance

Basic Salary

Children Social Allowance

Cost of Living Allowance

Grade Allowance

Hourly Wage

Housing Allowance

Overtime Allowance

Shift Allowance

Social Allowance

Transport Allowance

Unpaid Leave

Primary Classification Voluntary Deductions:

Loans


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The selection of the secondary classification will drive the questions of the element template and the characteristics

of the element that is created. For the allowances created as standard earning these characteristics are described

more in detail in the section of element allowances.

Subclassifications

Subclassifications are connected to primary classifications. The following subclassifications are defined for the

UAE:

Primary Classification Standard Earnings:

Subject to Social Insurance

Subject to Unpaid Leave

Primary Classification Information:


Subject to Unpaid Leave

Primary Classification Absences:


All these five subclassifications are attributed by default to the elements created for the corresponding primary

classification.

During implementation, if there is a requirement to define an element that is not a standard earning, but is part of

the contributory salary, the steps to follow are:

1. Define a new subclassification and the corresponding subclassification rule.

2. Feed the contributory balance with this subclassification.

Reviewing Classifications

1. To review classifications , log in with a Payroll Manager role

2. Navigate to task Manage Element Classifications in the Payroll Calculation work-area

3. Select the appropriate Legislative Data Group (LDG) and view all the primary classifications defined for

the legislation connected to the selected legislative data group.


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4. Select a specific classification to vie secondary classifications and subclassifications defined for the

primary classification.

Element Templates

A specific element template is available in UAE localization for the following primary classification:

Standard Earnings

For all other primary classifications, the standard global template is used also when creating UAE elements.

When selecting Standard Earnings as primary classification:


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If no secondary classification is selected or Basic Salary or Additional Allowance secondary classification if

selected, then the standard element template is followed and no specific UAE consideration is applied.

If the other Allowances secondary classifications are selected, then allowances are created following UAE

specific rules that apply to the specific allowance type.

If Unpaid Leave secondary classification is selected, an element with UAE specific characteristics for the

UAE is created.

In the global standard template, the section of Calculation Rules is not displayed because the related global objects

must not be created for these elements since UAE specific objects must be created instead.

Viewing, for example, an element created with secondary classification Hourly Wage:

You can see that specific input values have been created and a fast formula

(Test_Hourly_Allowance_AE_HOURLY_FF) is used to perform the calculations for this type of allowance.

When selecting Voluntary Deductions as primary classification:

If no secondary classification or End of Service Deductions secondary classification is selected, then the

standard element template is followed and no specific UAE consideration is applied.

If the Loans secondary classification is selected, then deduction element is created following Global

specific rules that apply to loans.

From a template questionnaire perspective, there is no difference with the global standard template, but in this

case, set of UAE-specific objects are created in addition to the global ones.

Further information is provided in the element details section of the document.

Availability of Element Template Functionality Based on Product License

The availability of features in element templates depends on the type of license you have.


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HR-Only: As an HR-only customer, you get access to the basic version of the element templates. These templates

create the element and you need to create the input values, formulas, balances to meet your business requirements.

Payroll Interface: As a payroll interface customer, you get access to a number of payroll features which are not

available to an HR-only customer. This includes access to the full earnings element that will create the element,

input values, formulas, balances. These earnings elements can be processed through the calculation to Gross

process which is also available to Payroll Interface customers. Any other type of element, such as deductions, is

created using the basic version of the element templates and you need to create the input values, formulas,

balances.

Payroll: A payroll customer gets access to the full set of earning and deduction templates. These templates create

the element, input values, formulas, balances.

Disclaimer Note: If you want to use an element in the payroll process, then the element must be created

after the payroll license is set. This creates the full set of data needed for payroll processing, such as

element definition, input values, balances, formulas. If payroll license is set after the element is created the

above data will not be created.

Setting up Licenses

1. Navigate to Payroll Process Configuration Task using the Functional Setup Manager (FSM)

2. Navigate to Default Group Tab

3. If you have overridden the group, then the payroll license must be set for that group.

4. Select Payroll License to decide Payroll License parameter name and edit it. Change the appropriate

license value.

You can enter following values:

HR_ONLY – This must be set when customer is having an HR only license.


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PAYROLL_INTERFACE – This must be set when customer is HR only and has a payroll interface

license.

PAYROLL – This must be set when customer has both HR and Payroll licenses

5. Navigate to Manage Default Process Configuration Group Profile Option Values Task in the FSM:

6. Set the appropriate configuration group in the profile option value field:

Elements: Allowances, Unpaid Leave and Loans

Earning allowances, unpaid leave and loans are the elements for which UAE localization has predefined specific

calculation rules.

Allowances


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The calculation rules for the below allowances are generated when creating the element using the related template.

Implementation teams need to elect the appropriate secondary classification when generating a new allowance

element. Implementation teams can also set up grade rates and calculation value definitions.

The calculations of these allowances are triggered through element entries.

Children Social Allowance

The children social allowance depends on the number of dependent children. This allowance is paid to the local

nationals only.

The following input is required for the calculation:

Citizenship information in the calculation card for the person.

Contact details for the employee in the contacts section in the Manage Person page with contact type

Child. The dependent must also be marked as Statutory Dependent. Number of dependent children is

based on the data entered here.

A range value for the seeded calculation value definition details Children Social Allowance. Allowance

per child is based on the value entered here.

To create the range value:

1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager.

2. Navigate to task Manage Calculation Value Definitions in the Payroll Calculation work area.

3. Select the calculation value definition details for Children Social Allowance:

4. Enter the value of the allowance per child by adding a row in Range Values


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Note: The From Value must be 0, while any value can be chosen for the To Value since it does not affect

calculation.

Note: The process of entering a value in calculation value definition details is the same for the other allowances.

Cost of Living Allowance

The cost of living allowance can be a flat amount or a percentage of salary.

The following input is needed to perform the calculation:

Range value for the seeded calculation value definition details Cost of Living Allowance Percent.

Range values for the seeded calculation value definition details Maximum Cost of Living Allowance

and Minimum Cost of Living Allowance: these two amounts will be used to set the maximum and

minimum amount, which a person eligible for the cost of living allowances.

Attach a Gratuity Salary formula, in the employer gratuity PSU level calculation card, if not already attached. The

value returned by this formula is used to take the base monthly salary for this allowance. The Cost of Living

Allowance Percent is applied to this monthly salary basis and the resulting amount is compared with the

Maximum Cost of Living Allowance and Minimum Cost of Living Allowance. In case this is out of range,

this is adjusted.

Grade Allowance

The basic salary is a fixed amount that is paid to the employee according to their grade. Since rates can be entered

for each grade, it is suggested that you use grade rate functionality for it.

The following is the input needed to perform the calculation:

Grades and grade rates must be setup following standard global process. The grade must be associated to

the payee in the Employment page.

Create an element entry for the payee entering the grade rate ID as an input value entry for Grade Rate.

Hourly Basic Salary

For employees under hourly contract the amount paid monthly is based on the number of hours worked during

the month. The hourly rate depends on the grade of the employee.

The following input is required to perform the calculation:

Create a grade and grade rate and associate it to the employee in Employment page and in Element entries

as shown previously in Grade Allowance.


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The value is calculated based on the hours worked in month * value returned from the grade rate table.

Hours worked will be entered as input value.

Housing Allowance

Housing allowance depends on the grade and marital status of an employee. The allowance can be a percentage

(based on grade and marital status) or an amount (based on grade or marital status). In case of percentage based

allowance, the calculated allowance amount can be subjected to a maximum and minimum limit.

If the employee avails accommodation that is provided by the employer, then the monthly paid allowance is zero.

An override feature is provided where you can enter the amount of housing allowance and then no calculations are

performed.

The following input is required to perform the calculation:

Housing allowance is paid to employee if accommodation is not provided by the employer. This

information is tracked at payroll relationship level and this value is defaulted to No in case there is no

value entered at payroll relationship level.

Marital status must be set for person in order to calculate the value of housing allowance and if no marital

status is set, no allowance is paid to the employee. Marital status is retrieved from the legislative

information section.

Create range values for the seeded calculation value definition details Housing Allowance Grade Rate

for Married and Housing Allowance Grade Rate for Single. In the value field of the range value UI,

you can select the grade rate from the ones that have been defined as grade rates.

Attach a Gratuity Salary formula, in the employer gratuity PSU level calculation card, if not already

attached. The value returned by this formula is used to take the base monthly salary for this allowance if

you have entered value of input value Rate value to be used as Percent.

Create range values for the seeded calculation value definition details Maximum Housing Allowance

for Married, Minimum Housing Allowance for Married, Maximum Housing Allowance for Single

and Minimum Housing Allowance for Single. In the value field for range value, you must enter

minimum or maximum value depending on the marital status. These values are used to get the allowance

amounts if you have entered value of input value Rate value to be used as Percent. More specifically, if

this calculation option is selected, the rate is applied to this monthly salary basis. The resulting amount is

compared with the Maximum and Minimum values of the allowance and, in case of being out of range, is

adjusted.

Note: The calculation of housing allowance (similar to other allowances) is triggered by creating an element entry

for the payee and parameters that will drive the calculation is entered as input values:


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Override Amount: allows overriding the final value of calculation.

Rate Value to be used as: drives the calculation method.

Overtime Allowance

Overtime allowance gets paid to an employee for hours worked beyond regular hours on normal working days.

The employee also gets paid when they work on rest days or holidays.

The overtime rate is a percentage of the salary that depends on the grade and is different for hours beyond regular

(on normal working days) and hours on rest days.


Attach a Gratuity Salary formula, in the Employer Gratuity PSU level Calculation Card, if not already

attached. The value returned by this is the base monthly salary that is converted to a hourly salary using

ROUND((monthly_salary * 12)/(365 * 8),2)

Create range values for the seeded calculation value definition details Overtime Allowance Grade Rate

for Regular Days, Overtime Allowance Grade Rate for Rest Days. In the value field of the range

value UI, you must choose the grade rates that are used to get the amount for rest and normal day

overtime.

Shift Allowance

Shift allowance depends on the grade and may also depend on the nationality of an employee: the allowance can be

in percent (based on grade and nationality) or in amount (based on grade and nationality). In case of a percent

based allowance, the calculated allowance amount can also be subjected to a max and min limit.

An override facility is also provided wherein you can enter the amount and then no calculations are performed.

The amount entered is processed directly as the shift allowance.


Create range values for the seeded calculation value definition details Shift Allowance Grade Rate for

National, Shift Allowance Grade Rate for Non-National. In the value field of the range value page,

you must choose the grade rates, which are used to get the shift allowance amount for UAE and no-UAE

citizens.

Create range values for the seeded calculation value definition details Minimum Shift Allowance,

Maximum Shift Allowance. In the value field of the range value UI, you must enter minimum or


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maximum value of the shift allowance. These values are used to get the allowance amount if you entered

the input value Rate value to be used as Percent.

Social Allowance

Social allowance depends on marital status of the employee and is paid only to UAE citizens.


Enter the citizenship in the calculation card for the person.

Marital status must be set for person in order to calculate the value of social allowance and if no marital

status is set, no allowance is paid to the employee. Marital status is retrieved from the legislative

information section.

Create range values for the seeded calculation value definition details Social Allowance for Married,

Social Allowance for Single. In the value field of the range value, you must enter social allowance

amount for the married or single employee.

Transport Allowance

Transport allowance depends on the grade and marital status of an employee. The allowance can be a percentage

(based on grade and nationality) or an amount (based on grade or nationality). In case of percentage based

allowance, the calculated allowance amount can also be subjected to a maximum and minimum limit.

If transportation is provided by the employer, then the monthly paid allowance is zero.

An override feature is provided where you can enter the amount of transport allowance and no calculations are

performed.


Enter the transport allowance paid to employee if no transportation is provided by the employer. This

information is tracked at payroll relationship level and this value is defaulted to No, in case there is no

value entered at payroll relationship level.

Enter the citizenship in the calculation card for the person.

Create range values for the seeded calculation value definition details Transport Allowance Grade Rate

for National and Transport Allowance Grade Rate for Non-National. In the value field of the range

value, you can select the grade rate from the ones that have been defined as grade rates.

Attach a Gratuity Salary formula, in the Employer Gratuity Details card, if not already attached. The

value returned by this formula is used to take the base monthly salary for this allowance if you have

entered value of input value Rate value to be used as Percent.

Create range values for the seeded calculation value definition details Maximum Transport Allowance,

Minimum Transport Allowance. In the value field of the range value, you must enter minimum or

maximum depending on the marital status. These values are used to get the allowance amounts if you

have entered value of input value Rate value to be used as Percent.

Allowances Setup: Worked Example

The requirement is to create an overtime allowance by which an overtime percentage of 110% is paid for regular

days and 150% is paid for rest days.

The following tasks need to be performed:

1) Create grade rates to store the percentages. Navigate to task Manage Grades in Workforce Structures

work area.


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2) Add a grade rate for each one of the percentages:

3) Associate these grade rates to range values. Navigate to the task Manage Calculation Value Definition

Details in the Payroll Calculation work area:


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4) Associate the appropriate Grade Rate to the Range Value:

5) When an element entry is created for an Overtime Allowance element, the hours entered is multiplied by

the hourly salary and the appropriate overtime percentages defined in the previous steps is applied.

Unpaid Leave

Unpaid leave element is generated by selecting unpaid leave as secondary classification in the element template.


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The unpaid element’s input value Days feeds the Leave Without Pay balance. The Leave Without Pay balance is

used in Gratuity calculation to get the unpaid or unauthorized absence.

This element also reduces the earnings, based on the amount calculated by the unpaid leave formula.

Creating an Allowance Element: Worked Example

This worked example describes how you can create an allowance element for Children Allowance.

6. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager:

7. Select Manage Elements in the Setup and Maintenance or Payroll Calculations work area:

8. On the Manage Elements page, click Create.

9. On the Create Element window, select the LDG and a primary classification, then click Continue:


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10. Complete the fields at the top of the Create Element page, and then answer the questions:

11. Click Next, and complete the rest of the questionnaire:

12. Verify the information and click Submit to create the new element:


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13. On the Element Summary page, provide additional information as needed, such as input values, processing rules, and eligibility:

Use the Element Overview panel to navigate through the setup pages.

Note: Input values have been created for this element to receive information needed to calculate the value of

the allowance.

Note: Element eligibility must be defined so that the element is linked to an element entry.

14. In the Element Overview panel, select Actions, and Create Element Eligibility.

15. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click Submit.


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Note: If you enter only a name and no eligibility criteria, the element is eligible for all employees.

16. The Balance Feeds link shows the balances that are fed by this element. All the balance feeds (apart from Impl_Doc_UAE_Children_Allowance that was generated by element rules) are generated automatically through the element classification defaulting mechanisms (and the related balance feeds by classification).

17. The Related Formulas link shows the formulas connected to the elements that were automatically generated by the template.


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18. Navigate to Manage Fast Formulas link to verify if the newly created formula is compiled and if not,

compile it.

Voluntary Deductions: Loans

The Loan element for UAE is created for the primary classification Voluntary Deductions and the secondary

classification Loan.

The following loan types are supported for UAE:

Personal Loan

House Construction Loan

Housing Rent Loan

Car Loan

Loan approval, processing and payments are outside the scope of payroll process. The payroll process only

supports the loan recovery process. Since the loan is interest free, there is no need for interest calculation.


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The element that is created through the element template is the loan recovery element. Multiple loan recovery

elements can be created if the enterprise has several types of loans.

The input data that is needed to perform the loans calculation is entered though the input values at element entry

level.

1. The input fields are generated by the element template when creating the element:

2. The element template also generates a set of balances used to store accumulated values needed to process

the loan:

3. Loan recovery is triggered for an employee by adding an element entry for an element classified as loan:


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The following points must be considered when entering data:

Effective Start Date: Date on which the loan recovery will start.

Effective End Date: End date of the element entry (if the element is recurring) indicating the last period

when the loan must be recovered.

Period Type: Indicates the frequency with which the value entered in the amount field recurs. Typically it

is either Calendar Month or Annually.

Amount: Indicates the amount to be recovered for the instance of the loan. If period type is Calendar

Month, then the amount is deducted monthly. If period type is Annually, then the monthly deduction

equals Amount divided by 12. If a loan is suspended for a period, then an instance with monthly

frequency amount of 0 is created.

Gratuity Payment Element

The UAE localization has predefined the Gratuity Payment element that is used to process gratuity payments.

This element is automatically calculated in payroll whenever the End of Service calculation card is automatically

generated by the termination process.

This element is feeding the gross pay and net pay balances:


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Salary Basis and Additional Allowance Elements

In addition to the previously described allowances that are created using UAE specific templates, other earnings

such as salary basis and compensation elements can be created using global templates.

The following steps show how to create a regular earnings element for basic salary:

1. Follow steps 1-3 used in the worked example for allowance creation.

2. On the Create Element window, select the LDG and a primary classification. Click Continue:

3. Complete the fields at the top of the Create Element page, and then answer the questions:

4. Click Next, and complete the rest of the questionnaire:


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5. Verify the information and click Submit to create the new element:

6. On the Element Summary page, provide additional information as needed, such as input values, processing rules, and eligibility:


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Use the Element Overview panel to navigate through the setup pages.

7. Repeat this entire process to create a set of elements to support your business needs. For example, you might create another element (Impl_Doc_UAE_Additional_Allowance) for an additional allowance.

Auto Indirect Elements and Creation of Element Eligibility

Auto Indirect elements have been predefined by UAE localization to trigger Social Insurance and Gratuity

Calculations once the related person level cards have been assigned to the person. These elements are

automatically assigned as element entry to the person:

This assignment is done without any action at the implementation level, but before assigning any person

calculation card the implementation team must create element eligibility for the Auto Indirect elements (i.e Social

Insurance and Gratuity) as in this example:


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This task is to be performed just once in the implementation process.

Note: Don’t select the Automatic entry check box.

Proration and Retroactivity

In scenarios where an employee has a mid-period change, for example, changing the basic salary during a month, a

set of elements must be prorated.

In scenarios where the employee has a retrospective change, the payroll process must recalculate payroll for past

periods and generate retroactive deltas to be processed in the current period.

Proration

Prorating Earnings

When creating an element through element template you must consider if the element must be prorated for mid-

period events. The behavior of the element is managed in the first stage by the answering the question related to

proration contained in the questionnaire:

If the answer is No, mid-period changes will not affect the calculated value of the element.


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If the answer is Yes, the template prompts you to enter the Proration Group. The mid-period changes

may now potentially affect the calculated value of the element.

For elements enabled for proration the template associates by default the global standard proration formula:

Proration formula GLB_EARN_PRORATION uses natural days proration. For example, in case of hire or

termination in the course of the month, it uses as proration factor:

Employment days in the period or Calendar days in the period

To meet different business requirements, implementation teams can create your own specific proration formula

and attach it to the elements that follow these business requirements.

Events that trigger the proration calculation are identified through the selected proration group.


2. Navigate to task Manage Event Groups in the Payroll Calculation work area.

3. Select Entry Changes for Proration

4. View the changes that trigger proration.


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No specific event group is predefined for the UAE localization. Additional event groups can be added in the


Retroactivity

Retro Earnings

When creating an element through the element template you must consider if the element must be retroactively

processed for mid-period events. Behavior of the element is managed in the first stage by answering the question

related to retroactive changes contained in the questionnaire:

If the answer is No, mid-period changes will not affect the calculated value of the element.

If the answer is Yes, the template prompts you to enter the Event Group. The mid-period changes may

now potentially affect the calculated value of the element.

Events that trigger the retro calculation are identified through the selected retro group.


2. Navigate to task Manage Event Groups in the Payroll Calculation work area.


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3. Select Entry Changes for Retro.

4. View the changes that trigger retro.

No specific event group is predefined for the UAE localization. Additional event groups can be added in the


UAE Specific Retro

For calculating Social Insurance Retro, we have created the following retrospective elements.

Contributory Salary Retro

Employee Social Insurance Retro

Employee Social Insurance Adjustment Retro

Employee Social Insurance Arrears Retro

Employer Social Insurance Retro

Employer Social Insurance Adjustment Retro

Note: For Private Sector, if a change in salary is backdated to January, only then will the retrospective Social

Insurance calculation happen, because the contributory base is set every year in the first payroll run of the month.


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Balances

Payroll balances show the accumulation of values over a period of time. The values can be currency, hours, or any

other numeric value. Most of the required balances are predefined and additional balances are created automatically

when creating elements. Implementation teams can edit the definition of these generated balances, or create

additional balances for calculations or reporting.

When a balance definition (balance type) is created, balance category and a unit of measure can be selected. Each

balance definition is grouped in a predefined balance category for quicker processing. Balance categories are

legislation-specific and cannot be modified.

Each balance can have multiple dimensions, which define the specific value to be retrieved. Balance dimensions

are predefined and typically combine these components:

Time span, such as run, period to date, or fiscal year to date

Employment relationship level, either assignment, terms, or payroll relationship

Context, required for some balances only, such as tax reporting unit (TRU), element, or payroll

When a specific balance dimension is linked to a balance type, this results in creating a defined balance.

The value assigned to a balance during processing is determined by balance feeds defined for the balance.

Balance feeds can be by element input values or by balance classification run results.

Balance Feeds by Element: Indicates one or more element input values to add or subtract from a balance.

If a balance is fed by a single element, it is called a primary balance.

Balance Feeds by Classification: Indicates that all elements belonging to a specific classification will feed

that balance. Any type of classification can be used to feed the balance but it is to be remarked that if a

primary classification is added as a balance feed, the children of this classification from the secondary or

subclassifications cannot be added. Also, you cannot use both secondary classifications and

subclassifications in the same balance feed.

Balances are important for reporting because in most of the reports balances represent the values that are displayed

in the output. Balances can be aggregated (through balance attributes) in balance groups and balance groups are

the entities that are used by payroll reports to identify the balances to be included in specific sections of the report.

A set of balance definitions are provided by global payroll, but localizations have a predefined set of definitions in

addition to global data.

UAE localization has predefined data related to the following balance definitions:

Balance Categories (enabling of global categories)

Balance Types

Balance Dimensions and Usages (enabling of global dimensions)

Defined Balances

Balance Groups and Attributes

Balances Definitions predefined for UAE

This section describes the predefined balance definitions for the UAE localization and related tasks at

implementation level.

A detailed list of balances definitions predefined for UAE can be found in the UAE balances spreadsheet

Oracle_Fusion_HRMS_UAE_Payroll_Balances.xlsx on My Oracle Support (MOS).


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Balance Categories

The following global categories are enabled for UAE:

Absences

Earnings

Employer Charges

Information

Miscellaneous


Direct Payments


Pre-Statutory Deductions


Total Earnings

Note: When creating a new balance in implementation phase, it must be associated to one of the predefined

categories and categories cannot be added or modified in implementation phase.

Balance Types

Balance types predefined by UAE localization are listed in the UAE Balances Spreadsheet:


In this section describes the balances that affect payroll calculation and that are likely to be fed by elements created

in the implementation phase.

A separate section is dedicated to the net pay balance due to its impact on the payment process.

Gross

Balance Gross Earnings collects all the gross earnings applicable for UAE and is fed by 2 primary classifications:

Standard Earnings

Supplemental Earnings

All elements created at the implementation level with these primary classifications feed this balance.

Unpaid Leave

Balance Subject to Unpaid Leave: Collects all the earnings that are not due to be paid when an employee is on

unpaid leave. This balance is fed by subclassification Subject to Unpaid Leave.

This subclassification is associated by default to earnings with primary classification Standard Earnings and

Information and so all elements created in the implement phase with these primary classifications will feed this

balance.

Balance Leave Without Pay: Used to track the unpaid absences that are used in Gratuity Calculation.

Social Insurance

Balance Subject to Social Insurance: Collects all the earnings that are liable to Social Insurance and fed by

subclassification Subject to Social Insurance.


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This subclassification is associated by default to earnings with primary classification Standard Earnings and

Information and so all elements created in the implement phase with these primary classifications feeds this

balance.

The value of this balance is used as contributory salary if the same is not overridden.

Balance Contributory Salary is used as base in the contributions calculations. Subject to Social Insurance is

designed to store the earnings that make up the contributory base, but for private sector the base can be

overridden or adjusted so, eventually, if there is no override or adjustment balance, contributory salary balance is

equal to balance Subject to Social Insurance, otherwise it will account for the override or adjustment.

Net Pay Balance

During the payment process, the net pay balance is used to store the amount to be transferred as remuneration for

the payee. A net pay balance, named Net Pay, is predefined for UAE, and no additional setup is required during

the implementation phase.

To view the Total Pay balance:

1. Select Manage Balance Definitions in the Payroll Calculations or Setup and Maintenance work areas.

2. Enter Net Pay in the Name field and select a UAE LDG, then click Search:

3. Click the Net Pay balance in the Search Results to view the balance information:

Note: The Use for Remuneration field must be set to Yes.

4. Click Balance Dimensions in the left panel to display the dimensions associated with this balance:


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Note: The Core Relationship Payments is associated with this balance.

5. Click Balance Feeds in the left panel to display the classification that feed this balance:

Note: all elements created in the implementation phase with these primary classifications feed this balance.

Balance Dimensions and Defined Balances

Balance dimensions enabled by UAE localization are listed in the UAE Balances Spreadsheet


As per employment model, balances are maintained at all four levels, that is: Payroll Relationship, Payroll Terms,

Payroll Assignment, and Group levels.

The only dimensions that can be selected when creating a balance in the implement phase are dimensions enabled

by UAE localization.

Combining balance types and enabled dimensions UAE has delivered a set of defined balances that are listed in the

UAE Balances Spreadsheet Oracle_Fusion_HRMS_UAE_Payroll_Balances.xlsx on My Oracle Support (MOS).

Balance Groups and Attributes

Balance Groups group together balances. For the UAE, they are used mainly for reporting or online viewing

purposes, to identify balances that must be considered in specific sections. The way these balance groups are used


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in specific features, such as the SOE, are detailed in the sections describing the features in detail.

The following balance groups are predefined for UAE:

AE_PAY_ARCH_GROUP_BALANCES_GROUP

AE_PAY_ARCH_REL_BALANCES_GROUP

These balance groups are used in the payslip, whereas all the other reports use global balance groups to which

country specific balances are connected.

The connection between defined balances and balance groups is managed through balance attributes.

Balance attributes can either be:

Created automatically through a defaulting mechanism depending on balance category and dimension

Predefined by localization

The AE Balances spreadsheet Oracle_Fusion_HRMS_UAE_Payroll_Balances.xlsx contains information on:

Defaulting criteria

Attributes predefined by UAE localization

When a balance that meets defaulting criteria is created in implement phase the related attribute is automatically

associated to the defined balance.

Defaulting criteria and attributed cannot be added or modified in the implementation phase.

Balance Groups can be restricted for a specific localization, so that only balances of certain dimensions or

categories are associated with a Balance Group. This is done through data that is predefined in the Pay Balance

Usage Items table. Data predefined in this table for UAE is shown in the AE Balances spreadsheet


Balances and SOE

The online Statement of Earnings (SOE) is a feature within payroll that allows the end-user to view all the relevant

information for an individual employee payroll run or a prepayment in a single place so that the results can be

easily viewed and verified.

This typically covers personal information, employment information, payroll information, absence information,

run results, messages and balances.

The SOE feature is part of global product and has been customized to meet country specific requirements.

Scope of this document is not to describe overall usage of the feature but to explain:

Criteria that drives the inclusion of specific balances in certain sections (the ones that contain balances

results) of the SOE

Predefined data for the SOE for UAE localization

How you can include user-defined balances in SOE

SOE Sections and Related Balances

Payroll results are displayed in the SOE in several sections:


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The following paragraphs mention the sections populated by balance results and for each section the balance

groups and related attributed connected to the section are listed.

Note: UAE localization has not predefined any balance group or attribute for SOE, so the global balance groups

are used.

Quick Reference Summary


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This section is additionally split into four tabs of which, the following two contain data retrieved from balance

results:

Gross to Net: This tab includes results for balances (defined balances) connected to balance group:

GLB_SUMMARY_GROSS_TO_NET_BALANCE_GROUP that is connected to attribute

GLB_SUMMARY_GROSS_TO_NET_ATTRIBUTE

Information: This tab includes results for defined balances connected to balance group:

GLB_SUMMARY_INFORMATION_BALANCE_GROUP that is connected to attribute

GLB_SUMMARY_INFORMATION_ATTRIBUTE

Earnings

This section includes results for defined balances connected to balance group:

GLB_SOE_EARNINGS_BALANCE_GROUP that is connected to attributes:

GLB_EARNINGS_ATTRIBUTE

GLB_SUPPLEMENTAL_EARNINGS_ATTRIBUTE

GLB_TAXABLE_BENEFITS_ATTRIBUTE

Deductions


GLB_DEDUCTIONS_BALANCE_GROUP that is connected to attributes:

GLB_PRE_STAT_DEDUCTIONS_ATTRIBUTE

GLB_INVOLUNTARY_DEDUCTIONS_ATTRIBUTE

GLB_VOLUNTARY_DEDUCTIONS_ATTRIBUTE

GLB_TAX_DEDUCTIONS_ATTRIBUTE

GLB_SOCIAL_INSURANCE_DEDUCTIONS_ATTRIBUTE

Information


GLB_INFORMATION_BALANCE_GROUP that is connected to attribute

GLB_INFORMATION_ATTRIBUTE

Employer Contributions


GLB_SOE_EMPLOYER_CHARGES_BALANCE_GROUP that is connected to attributes:

GLB_EMPLOYER_TAXES_ATTRIBUTE

GLB_EMPLOYER_CHARGES_ATTRIBUTE

Direct Payments


GLB_DIRECT_PAYMENTS_BALANCE_GROUP that is connected to attribute

GLB_DIRECT_PAYMENTS_ATTRIBUTE

Taxable Benefits


GLB_TAXABLE_BENEFITS_BALANCE_GROUP that is connected to attribute

GLB_TAXABLE_BENEFITS_ATTRIBUTE


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Predefined SOE Data for UAE

UAE localization uses the global Balance Groups for SOE and consequently the global attributes.

To display balances seeded by UAE localization in sections where attributes are not generated by default,

predefined assignment of attributes to a set of defined balances are delivered for UAE localization.

The complete list of UAE delivered associations between defined balances and attributes is contained in the UAE

Balances Spreadsheet Oracle_Fusion_HRMS_UAE_Payroll_Balances.xlsx on My Oracle Support (MOS).

For UAE, the following connections are defined between balances and sections of SOE report.

Gross to Net Summary Section

Earnings

Employee Social Insurance


Net Pay

Social Insurance


Information Summary Section

Contributory Salary

Leave Without Pay


Information Section

Employee Social Insurance Adjustment

Employee Social Insurance Arrears

Employer Social Insurance Adjustment

Attributes cannot be created or modified in the implementation phase.

User-Defined Balances and SOE

When you need to create a defined balance with a specific balance category that is mapped in the balance attributes

defaulting setup, then an attribute is associated to the defined balance. This occurs also for balances created via

template. If that attribute is connected to a balance group that is displayed in a section of SOE, then also the

balance you defined is viewable in SOE.

Payroll Set up

Before processing payroll or post payroll processes a set of base tasks must be performed by the implementation

team to define basic structures such as:

Banks and Bank Accounts

Organization Payment Methods

Consolidation Groups

Payroll Definitions

Salary Basis

Compensation Elements


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Payments Setup

To process payments, a payment method must be assigned to a payee. Setup of banks and branches must be done

before entering bank accounts and payment methods for the payee.

No banks or branches are predefined for UAE. Banks and branches must be defined during implementation. This

can be done manually, by entering the banks and branches in the application, or it can be done in a mass upload

process.

Banks

To define banks:

1. Sign in to the application with a role that has implementation privileges, such as APPL_IMP_CONSULTANT.

2. Select Manage Banks in the implementation project task list:

3. Click Create.

4. On the Create Bank page, provide the required information:

Bank Branches

To define branches for the banks you created:

1. Select Manage Bank Branches in the implementation project task list:


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2. Click Create.

3. On the Create Bank Branch page, provide the required information:

Bank Accounts

Once banks and branches are set up, you can define the bank accounts for the organization. Normally,

implementation teams set up bank accounts that are used at an organizational level, such as the source bank

accounts for payments, rather than bank accounts at the individual payee level.

To define bank accounts:

1. Select Manage Bank Accounts in the implementation project task list:


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2. Click Create.

3. On the Create Bank Branch page, provide the required information:

Note: If you want to use this bank account for processing payments related to payroll, select the Payroll

option in the Account Use field.

Note: The only Legal Entities that can be selected are the ones that have been assigned to a Primary Ledger.

Assignment can be done in task Assign Legal Entities:

Organization Payment Methods

After setting up banks, you can define the payment methods that can be used within the organization itself.

No organization payment methods are predefined for UAE. Implementation teams will need to create the ones

applicable to the enterprise.

To define organization payment methods:

1. Select Manage Organization Payment Methods in the implementation project task list:


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2. Click Create.

3. Select the LDG associated with this payment method:

4. On the Create Organization Payment Method page, enter the required information:

In the process of creating an organization payment method, a payment source needs to be created:


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Note: UAE supports the following Payment Types: Cash, Cheque, and Electronic Funds Transfer (EFT).

Consolidation Groups and Payroll Definitions

Consolidation groups and payroll definitions must be set up before running a payroll.

Consolidation Groups

Consolidation groups are used within the organization to enable grouping of different payrolls for reporting

purposes. No consolidation groups are predefined for UAE. If you are creating payroll definitions for the

implementation, you must define at least one consolidation group first, since it is mandatory information for

payroll definitions.

To set up consolidation groups:


2. Select Manage Consolidation Groups in the implementation project task list:

3. On the Manage Consolidation Groups page, click Add Row:

4. Enter a name and select the LDG. Description is optional, but useful to provide.

5. Click Save.


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Payroll Definitions

Payroll definitions contain calendar and offset information that determine when payments are calculated and paid.

Using payroll definitions, you can specify payment frequency, processing schedule, and other parameters for a

particular payroll. Payroll period types, such as weekly or monthly, determine the interval at which you pay

employees. UAE employees are typically paid monthly.

Each payroll definition can be associated with only one payroll period type, and you must set up at least one

payroll definition for each payroll period type that you use to pay employees. When you create a payroll definition,

the complete payroll schedule is automatically generated, based on the selected payroll period type, any offsets or

calendar adjustments, and the number of years that you specify. Once you have saved a payroll definition, you can

assign employees to it on the Manage Payroll Relationships page from Person Management work area.

Before you can create a payroll definition, you must have already defined the LDG and consolidation group.

No payroll definitions are predefined for UAE.

To set up payroll definitions:

1. Select Manage Payroll Definitions in the implementation project task list:

2. Click Create.

3. Select the LDG for this payroll definition, and click Continue:

4. On the Create Payroll page, enter the required information:


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Note the following:

UAE supports the following period types: Monthly Calendar and Biweekly.

Only the payroll interface license customer can use Biweekly period type.

If a user with payroll license selects Biweekly as Period Type, the user will not be allowed to create the

payroll definition.

You must select an existing consolidation group.

A Default Payment Method must be selected in order to be able to run the prepayment process.

Click Add Row in the Valid Payment Methods section to add an organization payment method to use as

the default, plus any additional payment methods that are valid for this payroll. You can select any

organization payment method defined for the LDG that is linked to this payroll definition.

5. Click Next, and provide the required information on the Payroll Offsets page:

Number of Years: number of years for which payroll calendars are created starting from the

Effective As-of-Date

Offset Details: used to determine the key dates within the monthly payroll process.


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Note: Date paid is used in the EFT file.

6. Click Next, and review the payroll calendars that have been generated:

Note: to modify any one of the defaulted dates, the payroll definition that has been created must be updated after

it is saved:

7. Click Next, and then finalize the creation of the payroll definition by clicking Submit.


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Salary Basis and Compensation

Once you have created the elements that are meant to hold the payee basic salary and compensation information,

you can perform the setup required to attribute the gross compensation to the payee.

Salary Basis

To set up the salary basis:

1. Sign in to the application with a role that has compensation administrator privileges, such as CMP_ADMIN_ALL.

2. Navigate to Compensation work area:

3. Select Manage Salary Basis, and then click Create:

4. On the Create Salary Basis page, select the payment element to use for the salary basis and provide the required information:


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Note: Selecting Amount as input value will enable the prorating of the amount by period frequency when payroll

is run.

Individual Compensation

To create a compensation plan, such as for a car allowance:

1. In the Compensation work area, select Manage Plans and click Create:

2. Select the payroll element for the compensation plan, such as a car allowance:

3. Select the Dates tab and set the payment start and end dates:

4. Select the Eligibility tab to define eligibility for the plan:

5. Select the Plan Access tab and indicate whether to restrict access to this plan:


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6. Select the Instruction Text tab and add any instructions you want to associate with the plan.

Currency Conversion Rates

Currency conversion rates must be set up before running a payroll for GCC citizens.

Currency Conversion Rates

To set up currency conversion rates:


2. Select Manage Daily Rates in the implementation project task list:

3. On the Manage Daily Rates page, navigate to the Daily Rates tab and click Create in Spreadsheet:


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4. Once the Spreadsheet gets downloaded, it will prompt you to log on. Once you are logged on, enter the details

as indicated below. Click Submit and then click OK. The Record Status column will be updated with Row Inserted Successfully if the records are loaded to the interface table.

To associate a currency rate type to an enterprise:

1. Select Manage Enterprise HCM Information in the implementation project task list:

2. Update the ‘Transaction Processing Conversion Rate Type’ field with the desired Currency Rate Type.


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Note: Enterprise changes are effective as per the date set in the Effective Start Date field. Note: Payroll Process will use the default conversion rate type Corporate if no conversion rate type is associated to Enterprise. 3. Click Done.


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Hiring an Employee and Running Payroll for UAE: Worked Example

In this section we will go through the process of hiring a UAE employee and running a payroll for the same. More

information on the hire task for UAE can be found in Oracle_Fusion_HRMS_for_UAE-HR_Setup_White_Paper

Hire an employee

To perform tasks related to person and employee management, you would typically sign- in to the application

using a role connected to a user, such as Human Resource Specialist:

The new hire process is the first task in the workforce lifecycle.

To hire an employee:

1. Select New Person under Workforce Management in the Navigator:

2. In the task list on the left, select Hire an Employee:


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3. On the Identification page, provide the required information:

4. On the Person Information page, provide the required information:


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5. On the Employment Information page, provide the required information:

Note: The employee is connected to the newly created Payroll Definition.

Fixed Terms Contracts

When hiring an employee with a fixed term contract you must enter the duration of the contract to be used in the

gratuity calculation, if gratuity is applicable.


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Assign additional information

Now that the employee has been hired a set of data needs to be assigned to the employee in order to be processed

and paid.

Basic information to be assigned is:

Remuneration Information

Calculation Cards

Personal Payment Method

Remuneration

Remuneration to the employee can be assigned either through Salary Basis and Compensation (that will

automatically generate element entries, or directly create element entries.

In the example below, you enter remuneration using the setup for Salary Basis and Compensation.

Adding a Salary

1. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager (PAY_MGR_ALL).

2. Select Manage Salary in the Person Management work area:


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3. Click Create, then complete the fields on the Add Salary window:

4. On the Manage Salary page, select the previously created Salary Basis and enter a Salary Amount, such as 2500 AED per month:


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Note: Selectable salary basis are limited to the ones defined for the LDG assigned to the payroll statutory unit

connected to the legal employer of the employee.

When you save this record, an element entry with the specified start and end dates is automatically generated. You

can view the entry on the Manage Elements Entries page:

Note: The salary basis has as annualized value of the compensation.

Adding Compensation

1. Select Manage Compensation in the Person Management work area:

2. On the Manage Compensation page, click Award Compensation:

3. On the Award Compensation window, select the previously created compensation plan and enter the compensation amount, such as 500 AED as additional allowance:


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When you save this record, an element entry with the specified start and end dates is automatically generated. You

can view the entry on the Manage Element Entries page:

Calculation Cards

For payroll to be processed for a UAE employee, the Employee Social Insurance Details card must be present.

This card is automatically generated upon hire process if the citizenship information is updated.

To view, edit and create calculation cards:

1. Select the Manage Calculation Cards task in the Payroll Calculation work area:

2. Select the employee and verify that Employee Social Insurance Details card is created:


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3. Review the default values that have been assigned to the card and if needed edit the data:

Note: If the card was automatically created as part of the new hire process, the value for Citizenship field is derived from Person Information. If the card is created manually, the citizenship is defaulted to United Arab Emirates. The default value for the Exception Type field is blank. If no value is specified, then the employer and the employee each pay their contributions.

Personal Payment Method

Once banks and branches have been loaded in the system and a payroll definition has been assigned to the

employee, you can add payment methods to the employee record.

To assign personal payment methods:

1. Select the Manage Personal Payment Methods task in the Payroll Distribution work area:


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2. Search for and select the employee.

3. On the Manage Personal Payment Methods page, click Create:

4. On the Personal Payment Method page, select the Organization Payment Method for this employee:

Note: If the payment type is EFT, you must add a bank account and provide banking details


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Note: An employee can have multiple payment methods. Use the Payment Amount Type and Percentage

fields to manage distribution across different payment methods.

Run Payroll and Review Results

Now that the basic information has been entered, it is possible to run payroll and review the related results. This

section describes the minimum data needed to run payroll, more detail on payroll process can be found in the core

guides.

Payroll run

1. Select the Submit a Process or Report task in the Payroll Calculation work area.

2. Select the LDG for which the payroll is to be calculated and flow pattern Calculate Payroll:

3. Enter the parameters to run the report:


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Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is

executed. You can choose any format to describe the payroll flow.

Payroll: Payroll definition for which payroll is being run.

Payroll Period: Period for which payroll is calculated. For UAE, the period is always monthly.

Run type: Optionally, the report can be run for a specific establishment.

4. Click Next

Specify the flow interaction range and schedule the process date and time if required. Review the details before you submit the process.

5. Click Submit.

Verify the process completion and view the generated report. Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.

Review Payroll Results

You can review the payroll results once the process is completed successfully:

Payroll results can be reviewed for the person:


2. Filter the results using the appropriate parameters such as for example the Payroll Name (Payroll

Definition):


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3. Select the desired row and review the results using SOE:


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Note:

The income subject to social insurance is made up of the two earnings that were assigned to the employee

through the remuneration definition.

Deductions are driven by the social insurance calculation cards. Note that when exception type Employee

pays both contributions was selected, both the employee and employer contributions are discounted from

Net Pay.

Government Sector Employees

To run the Monthly Contributions - Government Sector report, an employee belonging to a government sector

legal employer must be hired.

The legal employer must have the Government Sector selected in the legal entity calculation card for the social

insurance details component:


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Additionally in order to generate cheque payments, a cheque type payment method must be associated the

employee:

This employee is assigned the following payroll definition:


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Mandatory Post-Payroll Processes

Once payroll has been executed a set of mandatory intermediate post payroll processes need to be run:

Calculate Prepayments

Archive Periodic Payroll Results

These are needed as prerequisites to run the set of post payroll processes such as payments, payslip and regulatory

reporting.

Calculate Prepayments

Calculate Prepayments is the process in which the amount paid to the employees is split based on personal payment methods. If there is no personal payment method, then the process will use the Organization payment method.

To run the calculate prepayments process:

1. Select the Submit a Process or Report task in the Payment Distribution work area.

2. Select the LDG for which the process is being run and the flow pattern Calculate Prepayments:


Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process

is executed. You can choose any format to describe the payroll flow.


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Payroll: Payroll definition for which payroll is to be run.

Process Start Date: Start date of the process for which the prepayment is run.

Process End Date: Start date of the process for which the prepayment is run.

4. Click Next

Specify the flow interaction range and schedule the process date and time if required. Review the details before you submit the process. 5. Click Submit.


6. Review the results at the person level:

Archive Periodic Payroll Results

This is the process in which employee and Organization data gets archived. This data will be used in statutory reports or user created reports.

To run the calculate prepayments process:


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1. Select the Submit a Process or Report task in the Payment Distribution work area

2. Select the LDG for which the process is to be run and flow pattern Archive Periodic Payroll Results:

3. Enter the parameters to be used to run the report:





Process End Date: End date of the process for which the prepayment is run.

4. Click Next


5. Click Submit.



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6. Review the results at the person level:


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Payments Processing and Payslip

Once payroll has been executed a set of post-payroll processes need to be accomplished. Two basic post-payroll

processes are:

Payments processing

Payslip

This section describes:

What has been predefined by UAE localization to meet the UAE-specific business requirements.

The process to generate the report outputs.

A sample output of the reports.

Payments Processing

Global payroll provides a global process that generates .XML file containing data generated by payroll that is

relevant for payments processing.

The UAE localization has predefined an e-text template in Oracle Business Intelligence Publisher which generates

an EFT file from the XML. The EFT file has the structure prescribed for UAE.

To generate the EFT file, no setup is required in the implementation phase.

Report Execution


2. Select the LDG for which the process is to be run and flow pattern Make EFT Payments:

3. Enter the parameters to be used to run the report:


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Organization Payment Method: Process the employees with the selected organization payment

method.

4. Click Next


5. Click Submit.


6. View the results:


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7. Select the generated file and view the output:

Note: Once payment process is executed for a person for a specific period, the person will not be selected if the

process is rerun. To rerun the payment for an already processed person, the whole execution needs to be rolled

back.

Generate Cheque Payments

The global Generate Cheque Payments process generates an XML output. This XML output will contain the data

that is to be printed on the cheque template.

UAE localization has predefined a Rich Text Format (RTF) template in BIP that generates a printout from the

XML. The Generate Cheque Payments report has a predefined structure for UAE and consists of two sections:

The first section will contain the following information:

Payroll Relationship Number

Employee Name

Cheque Date

Cheque Number

Net pay in numbers and letters.

The second section contains:


Employee Name

Employee Organization Name

Job Title

List of earnings elements and amounts

List of deductions elements and amounts

Total amount to be paid

Note: All earnings with classification Standard Earnings, Direct Earnings, Supplemental Earnings templates are

displayed under Earning region, and all the deductions with classifications Voluntary and Involuntary deductions

are displayed under deductions region.

To generate the cheque payments, no set up is required in the implementation phase.

Report Execution


2. Select the LDG for which the process is to be run and flow pattern Generate Check Payments:


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Payroll: Payroll definition for which payroll is being run.



Organization Payment Method: Process the employees with the selected Organization Payment

Method OPM.

Start Check Number: This is not applicable to the UAE. You can enter any value here.

4. Click Next


5. Click Submit.



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6. View the results:

7. Select the generated file and view the output:


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Payslip

You can generate a payslip for each payment made for an employee for a given pay period, after successfully

completing the Event Archive for Payroll and Generate Cheque Payments or Direct Deposit processes.

Information such as Employee Details, Payroll Information, Earnings, and Payment Methods are displayed in a

payslip, as read-only.

The payslip consists of the following regions:

Employee Details

Payroll Information

Summary of Payments

Earnings

Deductions

Payment Information

Payslip Regions

This section describes in detail the content of each region and what you can set up in the implementation phase.

Employee Details

This region displays personal details of the Employee.

This is predefined and the following details are displayed in this region:

Employee Name

Person Number


Assignment Number

Job

Nationality

Tax Reference

Civil Identity Number

Grade

Contributory Salary

Payroll Process Information

This region displays the details of the payroll that has been processed for the employee.


Period Type

Period Start Date

Period End Date

Payment Date

Base salary

Summary of Payments

This region displays the payment summary derived from the payroll run.


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As by predefined setup set the following details are displayed in this region:

Total Earnings

Total Deductions

Total Pay: net pay value - difference between the total earnings value and the total deductions.

Earnings

This region contains all the elements paid to the employee.

Elements having the following primary classifications are considered to be payments:

Standard Earnings

Direct Payments

For any element, created at implementation phase, and having the above primary classifications (with value

different from zero) are included in this region.

Deductions

This region contains all the employee deductions.

Element having the following primary classifications are considered to be deductions:



Pre- Social Insurance Deductions

Social Insurance

For each element, whose calculation value is not zero, the amount and description are printed in the payslip.

Any element, created at implementation phase, and having the above primary classifications is included in this

region.

Payment Information

This region contains details about the payment method and bank details for the employee to whom the payment

has been made.


Cheque / Deposit Number

Bank Name

Branch Name

Account Number

Currency

Payment Amount

Report Execution


2. Select LDG for which the process is to be run and flow pattern Generate Payslips:


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3. Enter the parameters used to run the report:






4. Click Next


5. Click Submit.


6. Click Generate Payslip.


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7. Click View Results for each employee.

8. Click AEPayslip.pdf.


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Roll Back Process

This is the process in which we can rollback the Calculate Payroll, Pre-Payment, Cheque Payment, EFT Payment, Payroll Archive, Payslip, Statutory reports or User Created Reports.

Rollback Execution

1. Select the Submit a Process or Report task in the Payment Calculation work area.

2. Select LDG for which the process is to be run and the flow pattern Roll Back Process:


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3. Enter the parameters used to run the report:

Payroll Process: Identifier for the process being rolled back.

Payroll Relationship Group: Optional. You can provide Payroll Relationship Group.

Reason: Optional. You can provide the reason for the rollback.

4. Click Next


5. Click Submit.



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Monthly Reports

A set of statutory reports are predefined in the application for the UAE localization:

Form 1

Form 6

Form 7

Monthly contributions - Private Sector

Monthly contributions government sector

Wage Protection System: Salary Information File

IPE Consolidated Report

These statutory reports are executed after the payroll processing and submitted to the General Pension and Social

Security Authority (GPSSA).

This section of the document provides additional detail on these reports.

Form 1

Form 1 - New Hires is an on-demand statutory report, which an employer must submit to GPSSA upon hiring an

employee.

This report contains the following blocks of information:

Employer Information

Employee Personal Information

Employee Qualification Information

Employee Disability Information

Employee Compensation Information

This report can only be run for those PSU's whose Social Insurance Fund Type is GPSSA (General Pension and

Social Security Authority). Applicable for Release 10 and later.

The setup for retrieving the information is predefined.

You can find the content for the setup for this report in the section that contains employee compensation

information. Elements that contribute to each information block are defined by the element classification.

The mapping between fields in the report and element classifications or balances is documented in the UAE

Reports Mapping.xls in My Oracle Support.

Elements created during the implementation phase with classifications that are mapped to report fields, contribute

to the values reported in those fields.

Report Execution

1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area

2. Select the LDG for which the process is to be run and flow pattern Run Form 1:


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3. Enter the parameters to run the report



Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.

Month: Month for which the report is run.

Year: Year for which the report is run.

4. Click Next


5. Click Submit.


6. View the report results.


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105


106

Form 6

Form 6 - Insured Details is a statutory report that an employer must submit to GPSSA at the end of each month.

The report consists of information about the insured employees in the private sector.






Setup for retrieving this report is predefined.


information. Elements that contribute to each information block are defined by the element classification. The

details of the mappings between fields in the compensation section of the report and element classifications are

documented in the UAE Reports Mapping.xls on My Oracle Support (MOS).

Elements created at the implementation phase with classifications that are mapped to report fields will contribute


Report Execution



3. Enter parameters to run the report;


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4. Click Next


5. Click Submit.




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Form 7

Form 7 - Monthly Movements is a statutory report an employer needs to submit to GPSSA at the end of each month. It contains details of newly hired employees, salary changes of existing employees, and terminated employees.



Summary of contributions for the current month

Salary Information: New Employees

Terminated Employees

Other changes: Employees with Salary Changes.

On each page, the report displays 5 hired employees, 4 salary changes and 4 terminated employees. Blank rows are

displayed if there are no employees in a particular section.



Setup for retrieving this report is predefined.


information. Elements that contribute to each information block are defined by the element classification. The

details of the mappings between fields in the compensation section of the report and element classifications are

documented in the UAE Reports Mapping.xls on My Oracle Support (MOS).

Elements created during implementation phase with classifications that are mapped to report fields contribute to

the values reported in those fields.


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Report Execution



3. Enter parameters to run the report:






4. Click Next


5. Click Submit.




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Monthly Contributions – Private Sector

Monthly Contributions - Private Sector is a statutory report that an employer needs to submit to GPSSA at the end

of each month. It consists of information about monthly contributions of private sector employers and their

employees that is paid to the Social Security Office.



Employee Identification Information



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Employee and Employer Contributions



Setup for retrieving the information is predefined.

The content that depends on set up in the implementation phase is the one related to the following sections:



Elements that contribute to each box of these sections are defined by either one of these 2 methods:

Element Classification

Elements feeding a specific balance


Reports Mapping.xls in MOS.

Elements created at the implementation phase having classifications that are mapped to report fields, and feeding

balances that are mapped to report fields contribute to the values reported in those fields.

Report Execution


2. Select the LDG for which the process is to be run and flow pattern Run Monthly Contributions – Private Sector:



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4. Click Next


5. Click Submit.


6. View the report results:


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Monthly Contributions – Government Sector

Monthly Contributions - Government Sector is a statutory report that an employer needs to submit to GPSSA at

the end of each month. It contains detailed information about monthly contributions of government sector

employers and their employees that are to be paid to the Social Security Office.



Employee Identification Information





The set up for retrieving the information is predefined.

The content that depends on the set-up of the implementation phase is related to the following sections:



Elements that contribute to each box of these sections are defined by either one of these 2 methods:





Elements created at the implementation phases will contribute to the values reported in those fields:

Having classifications that are mapped to report fields

Feeding balances that are mapped to report fields


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Report Execution

1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area.

2. Select the LDG for which the process is to be run and the flow pattern Run Monthly Contributions – Government Sector:







4. Click Next


5. Click Submit.



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Wage Protection System: Salary Information File

Salary Information File is a statutory report that an employer needs to submit to a Wage Protection agent at the

end of each month. The report details information about the wages paid to individual employees.


Employee Detail Record (EDR)

Salary Control Record (SCR)

The setup for retrieving the information is predefined.


information. Elements that contribute to each information block are defined by the element classification.



Elements created during the implementation phase with classifications that are mapped to report fields, contribute


Report Execution


2. Select the LDG for which the process is to be run and flow pattern Run Salary Information File:





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Employer Reference: Employer reference is a free text field of maximum of 35 characters.

4. Click Next


5. Click Submit.


6. View the Report results:

Emirati IPE Consolidated Report

Overview

The Emirati IPE consolidated report is a monthly payroll report that is used across all Gulf Cooperation Council (GCC) countries by the social insurance offices. The report consolidates information related to new hires and terminations in a calendar month.


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Prerequisites

Ensure the following processes are run before you generate this report:

Payroll Run

Prepayments

Payroll Archive

Following is the process flow:

Emirati IPE Consolidated Report can be submitted multiple times for the same period. The report must produce the same output. The report will get data from archive data of that period.

Report Layout

Emirati IPE Consolidated Report has the following five sections:

Section for Employee Information.

Section for Employer Information.

Section for hire salary details (Income and allowances).

Section for termination salary and reason details.

Footer section: You can enter data in this section on the printed report.

Report Execution

1. Select the Submit a Process or Report task in the Checklist work area.

2. Select LDG for which the process is to be run and flow pattern Run IPE Report.

3. Enter the parameters required to run the report.

Payroll Run

Prepayment Run

Payroll Archive

Run IPE Report


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Payroll Statutory Unit: Payroll Statutory Unit for which the report is to be run.

Month: The month for which the report is to be run.

Year: The year for which the report is to be run.

4. Click Next


5. Click Submit.


6. View the Report results.


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Payroll Validation Report

Overview

The Payroll Validation Report is a monthly payroll report that is used to validate if the mandatory statutory data is provided for all the employees. The report will list the employees with missing or noncompliant statutory data. Payroll Validation Report can be submitted multiple times for the same period. This report needs to be run before running the Salary Information File report to check if the mandates for running Salary Information File are already present.

Report Layout

Payroll Validation Report has the following sections:

Section for Employer Information.

Section for Employee Information.

Report Execution


2. Select LDG for which the process is to be run and flow pattern Run Payroll Validation

Report.




Effective As-of-Date: Effective Date for the report.

Payroll Statutory Unit: Payroll Statutory Unit for which the report is to be run.


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4. Click Next


5. Click Submit.



Disabled Workers Report

Overview

Disabled Workers Report is a monthly report which contains information regarding an employee’s disability. The report is provided in English.

Prerequisites

Ensure the following:

• The required disability categories (and if required, the disability reason) are tagged with +AE.

• The disabled person is an employee or contingent worker.

• Disability data exists, which includes the following:

• The disability status is Active, Approved, Permanent, or Temporary.


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• The registration date should exist and it should be less than the report effective date parameter.

• The expiration date is null or greater than the effective date.

Report Layout

Disabled Workers Report has the following sections:

Section for Header.

Section for Parameters.

Section for Disabled Worker Information.

Report Execution

1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work

area.

2. Select LDG for which the process is to be run and flow pattern Run Disabled Workers

Report.




Legal Employer: Legal Employer for which the report is to be run. If left blank, all legal employers with

legislation code AE will be processed.

Disability Category: Disability categories available for users. If left blank, all disability categories will be

processed.

Effective Date: Disability data active as on this date will be processed.

4. Click Next


5. Click Submit.


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Global Reports

A set of global reports can be used to validate data included in UAE statutory reports. This section will contain

additional information on these reports.

Reports that can be used to validate data included in UAE statutory reports are:

Statutory Deductions Register

Payroll Register Report

Payment Register Report

Gross to Net Summary Report

Payroll Activity Report

Element Result Report

Payroll Balance Report

Statutory Deductions Register

The Statutory Deduction Register lists the different deductions that localizations consider as statutory. It will

display balances connected to the following balance groups:

GLB_TAX_DEDUCTIONS_BALANCE_GROUP


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GLB_INVOLUNTARY_DEDUCTIONS_BALANCE_GROUP

GLB_SOCIAL_INSURANCE_DEDUCTIONS_BALANCE_GROUP

The connection between balance groups and defined balances is explained in balance groups and attributes section

of the document.

This report may be used, in conjunction with SOE, Balance Views and various payroll reports for diagnostic

purposes, in order to verify the amounts deducted and submitted for each PSU.

The Statutory Deduction Register provides the output in summary format where totals for each TRU are displayed

with grand totals for each PSU. It also provides information in a detail format where deductions are listed against

each employee categorized by PSU, TRU and element classification).

The Statutory Deduction Register shows the amount on both Period-to-Date and Year-to-Date basis.

It can be used to verify the Monthly Contribution report (both Private Sector and Government Sector), the total

contributions as well as the Contributory Salary on those reports must match those shown on the Statutory

Deduction Register.

Report Execution


2. Select the LDG for which the process is to be run and flow pattern Run Statutory Deductions Register:



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Scope: Select either Summary or Detailed.

Payroll Period: Select the payroll period you want to run the report for.

Consolidation Group: Select the name of the consolidation group.

Payroll Statutory Unit: Limits the output to a specific PSU.

Tax Reporting Unit: Limits the output to a specific TRU.

Balance Category: Limits the output to a specific Balance Category, for example Standard Earnings.

Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.

Person: Limits the output to a selected person.

Hide Records with Zero Value: Select Yes if you want to limit the report to the non-zero balances.

Process Configuration Group: Select a Process Configuration Group if you want a log file

generated for the report.

4. Click Next


5. Click Submit.



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127

Payroll Register Report

The Payroll Register is post-archive report acting both as a verification tool and an audit trail. This report has a

summary and detail version. The summary report shows totals for hours, earnings, and deductions by payroll

statutory unit and tax reporting unit, the detail report shows complete payroll run details for each employee. The

Payroll Register Report retrieves archived payroll results, so ensure that run results have been archived before

running this report.

This report replicates the information shown on the payslip: once payslips are generated and stored, a professional

user can run the Payroll Register Report to view payslip information for a group of employees.

The report shows Run and Year-to-Date balance dimension.

It will display balances connected to the following balance groups:

GLB_SUMMARY_GROSS_TO_NET_BALANCE_GROUP

GLB_GTN_EARNINGS (Balance Category: Hours)

GLB_GTN_EARNINGS (Balance Categories: Earnings and Supplemental Earnings)

GLB_GTN_DEDUCTIONS (Balance Categories: Involuntary Deductions, Voluntary Deductions, Tax

Deductions, Social Insurance Deductions, Pre-Statutory Deductions)

GLB_GTN_DIRECT_PAYMENTS (Balance Category: Direct Payments)

This report can be used to verify certain statutory reports such as Form 1, Form 2 and Monthly Contribution

report (both Private Sector and Government Sector).

Report Execution


2. Select the LDG for which the process is to be run and flow pattern Run Payroll Register Report:


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Payroll Period: Select the payroll period you want to run the report for.







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Person Page Break: Select Yes if you want a Page Break after each Person’s report.

4. Click Next


5. Click Submit.




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Payment Register Report

Run the Payment Register to verify and provide an audit trail of payments generated. This report is a post-archive

report and has a summary and detail version. The summary report shows total amounts paid by payment category,

type, and method; the detail report shows payments for each employee. It includes payments generated by all

payment processes, including external payments. Run Payment Register is an automatic task in the normal payroll

cycle flow, occurring after payment generation, but can also be run as a standalone process in the Payment

Distribution work area. You can run this report before or after generating payslips.

On the Summary Report, each Payment Amount in the report must match the total paid through the

corresponding payment method. That is, total Cheque payment must match the total of the payments generated by

Cheque, and Payment Amount for EFT must match the Total on the EFT file.


131

On the detailed Report, Payment Amount must match the Net Pay on the payslip and the total must match the

Payment Amount on the Summary report.

Report Execution


2. Select the LDG for which the process is to be run and flow pattern Run Payment Register Report:







Payment Process: Allows selecting a specific payment process for which data must be extracted.

Consolidation Group: Limits the output to a specific Consolidation Group.



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Payment Category: Limits the output to the selected Payment Category

Payment Type: Limits the output to the selected Payment Type

Payment Method: Limits the output to the selected Payment Method

4. Click Next


5. Click Submit.




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Gross-to-Net Summary Report

The Gross-to-Net Summary Report provides the results of total payroll by earnings, deductions, and employer

charges for a specified period. The report is classified by TRU and has summary and details sections. The Gross-

to-Net Summary Report has its own HCM Extract definition. The report displays the details of balances associated

with the following balance groups:

GLB_GTN_EARNINGS

GLB_GTN_DEDUCTIONS

GLB_GTN_DIRECT_PAYMENTS


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GLB_GTN_EMPLOYER_CHARGES_GROUP_BALANCES

The connection between balance groups and defined balances is explained in balance groups and attributes section

of the document.

This report may be used in conjunction with SOE, Balance Views, and various payroll reports for diagnostic

purposes, in order to verify the amounts deducted and submitted for each PSU.

Report Execution

1. Select the Submit a Process or Report task in the Payroll Calculation work area

2. Select the LDG for which the process is to be run and flow pattern Run Gross-to-Net Report:











135

Process Configuration Group: Select a Process Configuration Group if you want a log file generated for

the report.

4. Click Next


5. Click Submit.




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137

Payroll Activity Report

The Payroll Activity Report shows the processing results for payroll runs, quick pays, reversals, and balance

adjustments for a given date range. This is an ad-hoc report which can be run at any time and which is not

dependent on any other processes such as pre-payments. This report can be used for payroll verification,

validation, and auditing purposes.

There are two options when running the report - Summary and Detail. The Summary report shows the aggregated

values for PSU and TRU combinations while the Detail report shows the results within PSU and TRU


138

combinations for individual employees. The Summary version is restricted to payroll runs and shows the totals for

all the people that were reported under that same payroll run in the Detail version.

The report shows Relationship Run and Relationship Year-to-Date balance dimensions.

The Detail version will display balances connected to the following balance groups:

GLB_EMPLOYER_CHARGES_BALANCE_GROUP (Balance Category: Employer Charges)

GLB_PAYROLL_RELATIONSHIP_OTHER_DEDUCTIONS_BALANCE_GROUP

GLB_PAYROLL_RELATIONSHIP_PRE_TAX_DEDUCTIONS_BALANCE_GROUP (Balance

Category: Pre-Statutory Deductions)

GLB_PAYROLL_RELATIONSHIP_TAX_DEDUCTIONS_BALANCE_GROUP (Balance Category:

Tax Deductions)

GLB_PAYROLL_RELATIONSHIP_EARNINGS_BALANCE_GROUP

GLB_HOURS_BALANCE_GROUP (Balance Category: Hours)

GLB_DIRECT_PAYMENTS_BALANCE_GROUP (Balance Category: Direct Payments)

GLB_PAYROLL_RELATIONSHIP_BALANCE_CLASSIFICATION_BALANCE_GROUP

Report Execution


2. Select the LDG for which the process is to be run and the flow pattern Run Payroll Activity Report:



139



Scope: Select either Summary or Detail.

Payroll: Payroll definition for which the payroll is to be run.

Process Start Date: Start date of the process for which the payroll is run.

Process End Date: End date of the process for which the payroll is run.

Process Type: Limits the output to a specific process.




Location: Limits the output to a selected Location.



Person Page Break: Select Yes if you want a page break after each Person’s report.



the report.

4. Click Next



140

5. Click Submit.



Detail Report


141


142

Summary Report


143


144

Element Result Report

The Element Result Report usually runs every pay period and it gives the earnings/deduction amounts (i.e. Special

Output Value) for the selected elements. This report can be used in conjunction with Balance Views, SOE and

Payroll Activity for diagnostic purposes.

This report can be sorted by Employee Full Name, Payroll Relationship, and Process Date.

If two reports are run on the same date, the reports will display data by Payroll Name in ascending order. The

report is based on the Run Results.


GLB_DEDUCTIONS_BALANCE_GROUP


GLB_SOE_EARNINGS_BALANCE_GROUP

GLB_EMPLOYER_CHARGES_BALANCE_GROUP


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Report Execution

1. Select the Submit a Checklist task in the Payment Distribution work area.

2. Select the LDG for which the process is to be run and the flow pattern Run Element Result Report:









Balance: Limits the output to a specific Balance.




the report.


146

Location: Limits the output to a selected Location.

4. Click Next


5. Click Submit.




147


148

Payroll Balance Report

The Payroll Balance Report is a reconciliation report. This report extracts the run balance results for a specific

period, which can be used to check or verify the values of other reports. The report is driven by Payroll, PSU,

TRU and Employee Name in the specified order.

The report is meant to be run for a single employee. It is generally used when there is an issue with an employee

and you need to see the results for that single employee to help diagnose the problem. The report shows all the

results for an employee.

The report shows Run balance dimensions.


GLB_DEDUCTIONS_BALANCE_GROUP


GLB_SOE_EARNINGS_BALANCE_GROUP


149

Report Execution


2. Select the LDG for which the process is to be run and the flow pattern Run Payroll Balance Report:











Location: Limits the output to a specific locations.




150


the report.

4. Click Next


5. Click Submit.




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152

Payroll Balance Exception Report

The Balance Exception report tracks values that vary for the same balance dimension. The variance indicates overpayments and underpayments. Generate this report immediately after the Payroll process so that you can track the potential mistakes that are not tracked as errors. This process is run immediately after the Payroll or QuickPay processing, or before generating the statutory reports, such as quarterly or annual reports. View to identify potentially incorrect payments or amounts withheld.

Process Flow

Pay Calculation Balance Exception Report

Prerequisites

You can generate a Balance Exception report, only after you create the balance exceptions

Create balance exceptions. Ensure that balances and balance dimensions exist before

generating the report.

Create at least one Balance Exception Report before you run the payroll flow.


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o Attach balance exceptions in the Balance Exceptions Report

Create Balance Exceptions

1. In the Payroll Calculation work area, from the Tasks pane, Manage Payroll Process Configuration

tasklist, select the Manage Balance Exceptions task.

2. In the Manage Balance Exceptions page, click Create.

3. Select LDG.

4. Click OK.

5. In the Create Balance Exception page, specify the value for the following parameters:

Balance Exception Name

Comparison Type

Comparison Values

Balance Name

Dimension Name: After selecting the balance name, you can specify the dimension name.

The Variance Type is Amount. Select the Variance Operator

Specify Variance Value

Set Severity Level.

6. Click Submit.

Setup a Balance Exception Report

1. In the Payroll Calculation work area, from the Tasks pane, Manage Payroll Process Configuration task

list, select the Manage Balance Exceptions and Reports task.

2. In the Manage Balance Exceptions and Reports page, click Create.

3. In the Create Balance Exception and Report window, select the LDG.

4. Click OK.

5. In the Create Balance Exception Report page, specify parameter values for the following:

Exception Report Name

Consolidation Group

Payroll

6. In the Include Balance Exception Report region, click Add to add a balance exception.

Note: The balance exceptions under the LDG are made available. 7. In the Add New Balance Exception window, click the Add icon to attach the Balance Exception Name

that you defined in the earlier task.

8. Click OK.

Note: To create a report, you must add at least one balance exception to the report. Verify the balance exceptions you have added.


154

Generating a Balance Exception report

After creating the balance exception and setting up the Balance Exception report, you can run the process and generate the report.

Report Execution

1. Select the Submit a Process or Report task in the Payroll Checklist work area.

2. Select the LDG for which the process is to be run and the flow pattern Run Balance Exception Report

3. Enter the parameters required to run the report:



Balance Exception Report

Payroll: Payroll definition for which the payroll is run.




Process Configuration Group: Select a Process Configuration Group to generate a log file for the

report.

4. Click Submit.

Verify the process completion and view the generated report.

Note: A message appears to verify the payroll flow. If the process is complete, you can view

the report.


155



156

Deductions Report

Payroll deductions processed for a specific period are tracked in the Deductions Report. You can validate the processed deduction amounts. The report tracks the employee information within the element classification and produces details on scheduled deductions and arrears processing.

You can generate the report in two modes:

Summary Mode: Use it to verify the total amounts paid by payment category, payment type,

status, and payment method.

Note: The reports don’t include payments made to third parties. Such payments are listed on another register.

Detail Mode: Use it to validate payments for each employee, including the payment amount,

bank, and check information.

You can generate the report independently or as a part of the Payroll process.

Prerequisites

Ensure that payroll is run for the payroll period. The following balance groups are added to the process:

GLB_DEDUCTIONS_BALANCE_GROUP: Used in Global Deductions for Deduction

Report


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GLB_MISCELLANEOUS_BALANCE_GROUP: Used in Global Miscellaneous for

Deduction Report

Report Execution


2. Select the LDG for which the process is to be run and the flow pattern Run Deduction Report:

3. Enter the parameters required to run the report:



Payroll: Payroll definition for which the payroll is run.


Deduction Category

Deduction

Location

Process Configuration Group: Select a Process Configuration Group to generate a log file for the

report.

4. Click Submit.

Verify the process completion and view the generated report.

Note: A message appears to verify the payroll flow. If the process is complete, you can view

the report.


158



159

Note: The report is sorted by TRU and Department.


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Termination

There are no separate post termination processes for UAE. Terminated employees are not considered for social

insurance processing in the month of termination.

Earnings can be paid after termination. In this case, it is important to check the payroll status of the payee to be

sure that it is included in the payroll run. The possible HR statuses that can be enabled are:

Payroll Eligible - Payee is included in the payroll run.

No Payroll - Payee will not be included in the payroll run.

Process When One Time Element: Payee will only be included in the payroll run if that have a non-

recurring (unprocessed) element entry for the payroll period.

Process When Earning: Payee will only be included in the payroll run if they have an element entry, for

the payroll period, for an earning having classifications with Process When Earning flag set to Yes.

Users can check the Pay Status to determine if the assignment will be processed in the payroll after the termination

based on the assignment status.

Steps to check Pay Status

1. Go to Manage Assignment Status and click the link Go To Task.

2. Check the Pay Status based on the Assignment status after termination.


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A statutory report (Form 2) needs to be submitted to the Social Insurance Office by the employer upon

terminating an employee’s service. The report is required by Social Insurance office within 30 days from the

termination date of an employee.

In the termination month, gratuity payment is automatically generated, if the employee is eligible. This amount is

added to the employee’s net pay. Rules for determining the gratuity payment are described gratuity calculation

section.

When a terminated employee is rehired, the employee is treated as a new employee. There is no linkage to the old

records of the employee. In effect, a rehire is treated as a new employee with a new payroll relationship.

Worked Example – Terminating an Employee

This section describes termination of an employee and its effect of calculation and reporting.

To terminate a work relationship:

1. Log in with an HR Specialist role (HR_SPEC_ALL).

2. Select Manage Work Relationship in the Person Management work area and select Terminate from the Actions menu.

3. On the Terminate Work Relationship page, enter the details of the termination, including the termination reason:


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4. Review and Submit.

End of Service Details Calculation Card

For employees for whom the registered for social insurance check box is set to No, the action of termination the

employee triggers the automatic creation of an End of Service details calculation card:

The card is created with the calculation component and component details and associations. You can review and

edit the card, for example, to enter an override amount for gratuity.


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Running Payroll

After verifying that the calculation card is created February 2010 (month when the employee is terminated), payroll

can by be run for Payroll Definition UAE Pay Doc and the following results are generated:

Note that:

Gratuity payment is triggered in line with the amount entered as override.

Social insurance deductions are calculated to zero since we are in the month of termination.


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This is also reflected in the prepayments:

Reverse or Correct Termination

No specific behavior is required for UAE in case of termination and rehire, as a result of which the default

functionality of Core Pay and Core HR will be sufficient.

However, if a gratuity calculation card exists then the system will generate an error message. The gratuity

calculation card needs to be deleted before the termination can be reversed or corrected.

Form 2

Form 2 - Terminations is a statutory report that an employer needs to submit to the Social Insurance Office,

within 30 days, upon terminating an employee’s service.



Employee Personal Information

Employee Termination Information


End of Service/Other Deductions

Employee Banking Details




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Setup for retrieving the information is predefined.

The details of setup in the implementation phase are in the relevant sections containing:

Employee compensation information

End of Service or Other Deductions

Elements that contribute to each information block of these sections are defined by either one of these two

methods:





Elements created at the implementation phase:

Having classifications that are mapped to report fields

Feeding balances that are mapped to report fields

These elements contribute to the values reported in those fields.

Report Execution


2. Select the LDG for which the process is to be run and flow pattern Run Form 2






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4. Click Next


5. Click Submit.


6. View the Report results


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Conclusion

This document focuses on information specific to implementing and using Oracle Fusion HCM in United Arab

Emirates. To read more about these tasks, refer to the documents listed in the Other Information Sources section.

Glossary

General Terminology

consolidation group

A grouping of payroll runs within the same time period for which you can schedule reporting, costing, and post-

run processing.

Calculation card

A mechanism for capturing values required for calculating payroll deductions at the level of a payroll statutory unit,

tax reporting unit, or payroll relationship. At the payroll relationship level, this is called a personal calculation card.

calculation component

An individual deduction captured on a calculation card. Typically relates to a deduction element for which the

calculation component creates an entry.

flexfield

Grouping of extensible data fields called segments, where each segment is an attribute added to an entity for

capturing additional information.

legal employer

A legal entity that employs people.

legal entity

An entity is identified and given rights and responsibilities under commercial law, through the registration with the

country's appropriate authority.

obligation.

legislative data group

A means of partitioning payroll and related data. At least one legislative data group is required for each country

where an enterprise operates. Each legislative data group is associated with one or more payroll statutory units.

payroll statutory unit

A legal entity registered to report payroll tax and social insurance. A legal employer can also be a payroll statutory

unit, but a payroll statutory unit can represent multiple legal employers.


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Oracle Fusion HRMS (UAE): Payroll

Implementation and Functional Considerations

March 2016

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