Proration and Retroactivity for Qatar

If an employee has a mid-period change, for example, changing the basic salary during a month, a set of elements needs to 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 the element template you need to 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.
• If the answer is Yes, the template prompts you to enter the Proration Group. The mid-period changes may now potentially affectthe 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:

To meet different business requirements, you 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.

Retroactivity

Retro Earnings

When creating an element through the element template you need to consider if the element must be retroactively processed for prior payroll 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, prior 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 prior changes may now potentially affect the calculated value of the element.

Qatar Specific Retrospective Elements

• Contributory Salary Retro
• Employee Social Insurance or Pension Fund Retro
• Employee Social Insurance or Pension Fund Adjustment Retro
• Employee Social Insurance or Pension Fund Arrears Retro
• Employer Social Insurance or Pension Fund Retro
• Employer Social Insurance or Pension Fund Adjustment Retro
• Bahrain Employer payment borne by Citizenship Country Retro
• Bahrain Employer payment borne by Employee Retro
• Bahrain Employee Social Insurance Retro
• Bahrain Employer Social Insurance Retro
• Kuwait Employer payment borne by Citizenship Country Retro
• Kuwait Employer payment borne by Employee Retro
• Kuwait Employee Social Insurance Retro
• Kuwait Employer Social Insurance Retro
• Oman Employer payment borne by Citizenship Country Retro
• Oman Employer payment borne by Employee Retro
• Oman Employee Social Insurance Retro
• Oman Employer Social Insurance Retro
• Qatar Employer payment borne by Citizenship Country Retro
• Qatar Employer payment borne by Employee Retro
• Qatar Employee Social Insurance Retro
• Qatar Employer Social Insurance Retro
• Saudi Employer payment borne by Citizenship Country Retro
• Saudi Employer payment borne by Employee Retro
• Saudi Employee Social Insurance Retro
• Saudi Employer Social Insurance Retro
• Social Insurance Pay Base Retro
• Employee Social Insurance Absence Arrears Retro
• Gratuity Payment 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.