Allowances Element for Kuwait
Earning allowances is an element for which Kuwait localization has predefined calculation rules.
The calculation rules for the below allowances are generated when creating the element using the related template. Implementation teams need to select 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.
Child Allowance
The child 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:
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Citizenship information in the calculation card for the person.
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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.
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A range value for the seeded calculation value definition Child Allowance. Allowance per child is based on the value entered here.
To create the range value:
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Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager.
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Navigate to Manage Calculation Value Definitions task in the Payroll Calculation work area.
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Select the calculation value definitions Child Allowance.
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Enter the value of the allowance per child by adding a row in Range Values.
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The From Value must be 0, while any value can be chosen for the To Value since it doesn't affect calculation.
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The process of entering a value in calculation value definitions 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:
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Range value for the seeded calculation value definitions Cost of Living Allowance Percent.
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Range values for the seeded calculation value definitions 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 is 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.
Social Allowance
Social allowance depends on marital status of the employee and is paid only to Kuwaiti citizens.
The following is the input needed to perform the calculation:
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Enter the citizenship in the calculation card for the person.
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Marital status must be set for the 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.
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Create range values for the seeded calculation value definitions 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
The transport allowance can be a flat amount or rate definition.
- If the calulation rule is a flat amount, you should enter the transport allowance for national and non-nationals.
- If the calculation rule is a rate definition, you should enter a rate to calculate the allowance for national and non-nationals.
Housing Allowance
The housing allowance can be a flat amount, percentage of salary or rate definition.
- If the calculation rule is a flat amount, enter the housing allowance amount.
- If the calculation rule is a percentage of earnings, you should enter the housing allowance percentage.
- If the calculation rule is a rate definition, enter a rate to calculate the allowance for married and single.