Release 380: Enhancement for 'Indemnity benefits' component (Middle East legislation)
SE17AE Payroll Middle East
Menu path:
Payroll/Components/Maintain
Background
Indemnity
benefits is normally payable
to resource when a resource resigns or has been terminated. The amount of this
payment is always dependent on resource's years of service for the company. In the
previous release, the payment calculation of the resigned resource was always
dependent on the percentage defined upon resource's service year via Payment
scale in Indemnity benefits
component. And, 100% of payment was the default payment for terminated
resource. From Release 380 onwards, Payment scale is now enhanced with 2
options: Days and Percentage. Users are now able to define
different payment options for resigned or terminated resource.
What has been
changed
From release 380 onwards, two options are now
available for users to define payment scale: Days and Percentage.
By selecting option: Days, the payment will
be calculated based on the number of days that a resigned or terminated resource
deserves upon their service year. In the case if option Employment
terminated checked box is selected in resource payroll data, the payment
will be calculated based on the number of days defined for terminated resource,
where else the payment will be calculated based on the number of days defined
for resigned resource if option Employment terminated checked box is not
selected.
Same functionality applied for option:
Percentage. The only different is the payment will be calculated based on
the defined percentage instead of days.
Screens example
Payment scale - Previous layout
Payment scale (Days) - New
layout
Payment scale (Percentage) - New
layout
Calculation example
Indemnity benefit
Formula = [(Total base value x No. period in the
current year) / Division factor x Benefit days] - Previous months of the total
indemnity benefits
Remark:
Benefit days: [(Total number of service days
from start date till current period end date x 12) / 365] / 12 * Entitled
indemnity benefits days based on the service years defined in the
component
Payment of accruals (Days)
Formula = [(Latest last salary x 12) / Division
factor)] x (Total number of service days / 365) x Entitled indemnity benefits
days based on the service years defined in the payment scale
Payment of accruals (Percentage)
Formula = [(Latest last salary x 12) / Division
factor)] x (Total number of service days / 365) x Entitled indemnity benefits
days based on the service years defined in the component x Percentage based on
the service years defined in payment scale
| Case 1: Define 'Payment scale' in 'Days' |
| Steps:
Create Indemnity benefits
component
Define Days deserve upon service
year
| Service year |
Days |
| >= |
1 |
15 |
| >= |
5 |
30 |
| >= |
10 |
60 |
Define Division factor =
Calendar
Define Days deserve upon service year
due to resignation or termination in Payment scale
| Service year |
Resign
(Days) |
Terminated
(Days) |
| >= |
1 |
15 |
20 |
| >= |
5 |
30 |
35 |
| >= |
10 |
60 |
65 |
Create Payment of accruals
component
Link this Indemnity benefits component
to Payment of accruals component
Create Base salary
Create a resource with employment date 01
January 2005
Link Base salary and Indemnity
benefits components to resource
Calculate the payroll entries from
Period 1 Year 2005 till Period 5 Year 2006
with resource Contract end date 31 May 2006
Check the Indemnity benefits printed
at Payroll slips
Remark:
Checked on Employment terminated in
resource Payroll data if the resource is being terminated by
employer. In this case, the payment of indemnity benefits will be based on
Terminated days |
Result:
Payment of accrual (Days)
=
[(4000 x 12) /
365] x [516/365] x 15 = 2788.67 |
|
Case 2: Define 'Payment
scale' in 'Percentage' |
| Steps:
Create Indemnity benefits
component
Define Days deserve upon service
year
| Service year |
Days |
| >= |
1 |
15 |
| >= |
5 |
30 |
| >= |
10 |
60 |
Define Division factor =
Calendar
Define Percentage deserve upon service
year due to resignation or termination in Payment scale
| Service year |
Resign
(%) |
Terminated
(%) |
| >= |
1 |
15 |
20 |
| >= |
5 |
30 |
35 |
| >= |
10 |
60 |
65 |
Create Payment of accruals
component
Link this Indemnity benefits component
to Payment of accruals component
Create Base salary
Create a resource with employment date 01
January 2005
Link Base salary and Indemnity
benefits components to resource
Calculate the payroll entries from
Period 1 Year 2005 till Period 5 Year
2006
Check the Indemnity benefits printed
at Payroll slips
Remark:
Checked on Employment terminated in
resource Payroll data if the resource is being terminated by
employer. In this case, the payment of indemnity benefits will be based on
Terminated days |
Result:
Payment of accrual (Percentage)
= [(4000 x
12) / 365] x [516/365] x 15 x 15% = 418.30
|
Related topics
| Main Category: |
Support Product Know How |
Document Type: |
Release notes detail |
| Category: |
Release Notes |
Security level: |
All - 0 |
| Sub category: |
Details |
Document ID: |
14.992.516 |
| Assortment: |
Exact Globe
|
Date: |
10-05-2017 |
| Release: |
380 |
Attachment: |
|
| Disclaimer |