Options for Employer Calculation Cards for Saudi Arabia

Use the Legal Entity Calculation Records task from the Setup and Maintenance work area to access the PSU level cards. Saudi Arabia provides two predefined calculation cards at the payroll statutory (PSU) level.

• Employer GOSI Details

• Employer Gratuity Details

Employer GOSI Details Card

This card uses this information for social insurance calculation at the PSU level:

• Reference Formula: You can define the formula that calculates the salary for social insurance calculations at the legal entity level and select it here.

• Sector: The employer sector can be government sector or private sector. Currently the deduction rules are only applied based onthe choice of private sector.

Employer Gratuity Details Card

This card contains the payroll statutory unit (PSU) gratuity details and uses these information for gratuity calculation:

• Basis for Calculation: The amount of gratuity is based on the salary per day of the employee. This will differ based on whether you select 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 basis of calculation method uses 365 days in a year whereas the Fixed method uses 360 days.

• Reference Formula: You can define your own reference formula to calculate the gratuity amount. Once you define this, it will be available for selection on the card.

• Salary Formula: You can define your own salary formula for gratuity calculation. Once you define this, it will be available for selection on the card.