1. Administering Payroll for Saudi Arabia
  2. Automatic Employee Gratuity Details Card Creation for Saudi Arabia

Automatic Employee Gratuity Details Card Creation for Saudi Arabia

If the value of your country extension setting in the Manage Features by Countries or Territories page is either Payroll or Payroll Interface, an employee gratuity details calculation card is created automatically when an employee is terminated.

Use the Calculation Cards task to review and update the card. It is important to understand the following aspects of the automatic calculation card creation:

  • Calculation Components and Component Details

  • Association and Association Details

  • Element Entries

  • Editing the Card

Prerequisites

The following are the prerequisites for the automatic card creation process:

  • You must have defined an Employer Gratuity Details calculation card at the payroll statutory unit (PSU) level. Use the Legal Entities for Human Capital Management task to do this

  • You must have defined the element eligibility for the Gratuity payroll element. Use the Elements task from the Payroll Calculations work area to do this.

Calculation Components and Component Details

The automatically created card contains the Gratuity Details component and component details with the following fields:

Field

Default Value

Override Amount

Blank
Latest Gratuity Payment Date Blank

Association and Association Details

The calculation card is automatically associated to the default tax reporting unit (TRU), belonging to the payroll statutory unit (PSU), for which the payroll relationship is terminated. The calculation card and all the employment terms for the employee are associated with only one TRU.

Element Entries

An element entry for Gratuity is created automatically when the card is created, provided that eligibility has been defined for those elements and the employee meets the eligibility criteria.

Edit the Calculation Card

Once the card has been created, you can view and update the card as required. If you specify an override amount, this amount overrides the reference formula for gratuity calculation defined at the payroll statutory unit (PSU) level and the calculation formula defined at legislative level.