Oracle Fusion HRMS For UAE Payroll SetupR13.22.07

Oracle Fusion
HCM United
Arab Emirates
PAYROLL IMPLEMENTATION AND FUNCTIONAL CONSIDERATIONS
JULY 12, 2022

PURPOSE STATEMENT
This document provides an overview of features and enhancements included in release R13.22.07.
It is intended solely to help you assess the business benefits of upgrading to R13.22.07 and to plan
your I.T. projects.
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into any contractual agreement with Oracle or its subsidiaries or affiliates.
This document is for informational purposes only and is intended solely to assist you in planning for
the implementation and upgrade of the product features described. It is not a commitment to deliver
any material, code, or functionality, and should not be relied upon in making purchasing decisions.
The development, release, and timing of any features or functionality described in this document
remains at the sole discretion of Oracle.
Due to the nature of the product architecture, it may not be possible to safely include all features
described in this document without risking significant destabilization of the code.
Note: In the images or examples included in this document regarding: user details, company names,
addresses, emails, and/or telephone numbers represent a fictitious sample of data (based upon made up
data used in a demo environment). Any similarity to actual persons, living or dead, is purely coincidental
and not intended in any manner.
2 Oracle Fusion HCM United Arab Emirates

Table of Contents
Purpose Statement ...................................................................................... 2
Introduction .................................................................................................. 7
What’s in this Document .............................................................................................................. 7
Other Information Sources .......................................................................................................... 8
Document Updates ...................................................................................................................... 8
Comments and Suggestions........................................................................................................ 9
Payroll Data ............................................................................................... 10
Person and Employment Payroll Data ........................................................................................10
Calculation Cards .......................................................................................................................12
Statutory Deductions and Gratuity Calculation .......................................... 27
Social Insurance Calculation ......................................................................................................28
Social Insurance Contributions when on Unpaid Leave or Sick Leave .......................................30
Social Insurance Calculation for GCC citizens ...........................................................................33
Gratuity Calculation ....................................................................................................................37
Monthly Gratuity Accrual ............................................................................................................40
Elements.................................................................................................... 41
Element Classifications ..............................................................................................................42
Element Templates.....................................................................................................................46
Elements: Allowances, Unpaid Leave and Loans .......................................................................49
Gratuity Payment Element ..........................................................................................................62

Salary Basis and Additional Allowance Elements .......................................................................63
Auto Indirect Elements and Creation of Element Eligibility .........................................................65
Proration and Retroactivity .........................................................................................................66
Involuntary Deductions: Court Orders........................................................ 71
Third-Party Organization or Person ........................................................... 76
Balances .................................................................................................... 81
Balances Definitions predefined for UAE ....................................................................................82
Balances and SOE .....................................................................................................................86
Payroll Setup ............................................................................................. 90
Payments Setup .........................................................................................................................90
Consolidation Groups and Payroll Definitions.............................................................................94
Payroll Definitions .......................................................................................................................95
Salary Basis and Compensation.................................................................................................99
Currency Conversion Rates......................................................................................................101
Hiring an Employee and Running Payroll for UAE: Worked Example ..... 103
Hire an employee .....................................................................................................................103
Assign additional information ....................................................................................................107
Run Payroll and Review Results ..............................................................................................114
Government Sector Employees ................................................................................................118
Mandatory Post-Payroll Processes .......................................................... 119

Calculate Prepayments ............................................................................................................119
Archive Periodic Payroll Results ...............................................................................................122
Payments Processing and Payslip........................................................... 125
Payments Processing ...............................................................................................................126
Payslip ......................................................................................................................................131
Rollback Process ......................................................................................................................136
Payroll Cycle Flow ....................................................................................................................138
Monthly Reports....................................................................................... 140
Form 1 ......................................................................................................................................141
Form 6 ......................................................................................................................................145
Form 7 ......................................................................................................................................147
Monthly Contributions – Private Sector ....................................................................................150
Monthly Contributions – Government Sector ............................................................................153
Wage Protection System: Salary Information File ....................................................................156
Wage Protection System: Request For Refund ........................................................................158
Emirati IPE Consolidated Report ..............................................................................................160
ADRPBF New Hire Report........................................................................................................163
ADRPBF Termination Report ...................................................................................................165
Payroll Validation Report ..........................................................................................................168
Disabled Workers Report .........................................................................................................170

Global Reports ......................................................................................... 172
Statutory Deductions Register ..................................................................................................173
Payroll Register Report ............................................................................................................176
Payment Register Report .........................................................................................................181
Gross-to-Net Summary Report .................................................................................................184
Payroll Activity Report ..............................................................................................................191
Element Result Report .............................................................................................................198
Payroll Balance Report .............................................................................................................201
Third-Party Payment Register Report .......................................................................................205
Payroll Balance Exception Report ............................................................................................208
Deductions Report ....................................................................................................................212
Termination .............................................................................................. 215
Steps to check Pay Status ........................................................................................................215
Worked Example – Terminating an Employee..........................................................................216
Reverse or Correct Termination ...............................................................................................220
Form 2 ......................................................................................................................................220
Conclusion ............................................................................................... 224
Glossary .................................................................................................. 224
General Terminology ................................................................................................................224

INTRODUCTION
This paper identifies and describes payroll setup tasks for Oracle Fusion Human Resources
Management System (HRMS) for the United Arab Emirates (UAE).
What’s in this Document
This document is intended to support the implementation team in understanding:
• UAE-specific payroll data that needs to be provided.
• UAE statutory deductions calculations and set up needed at implementation level.
• UAE predefined element templates and set up that needs to be done when creating
customer specific elements.
• UAE-specific predefined balances and how these can be fed by customer specific elements.
• UAE-specific considerations for proration, retroactivity and terminations.
• The base set up that needs to be done to execute a UAE payroll and prepare payment file
and payslip.
• The post-payroll processes that can be executed for UAE.
• UAE predefined setup for SOE online results viewing and impact on customer created
balances.
• The migration process from a legacy system, by identifying UAE-specific fields that need to
be populated by such migration.
Note: Flexfields described in this document are Developer Descriptive Flexfields (DDF) that must
not be customized at an implementation level. Customer Descriptive Flexfields (DFF) are the fields
delivered by the product that are meant to be used for customization during implementation.
This documentation may also be beneficial to end users who run application processes after
implementation.

Note: This document should not be considered a comprehensive guide for payroll implementations.
The focus of this document is UAE-specific processes and information. For information about
generic tasks, the implementation team should refer to documentation listed in the following section.
Note: Before running payroll for UAE, Human Resources needs to be implemented for the country
itself. For this task refer to the HR Implementation and Functional Considerations guide for UAE,
listed in the following section.
Other Information Sources
Oracle Fusion Workforce Deployment Implementation Guide:

http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm
Oracle Fusion HRMS (UAE): HR Implementation and Functional Considerations Guide:

https://support.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1565436.1
Oracle Fusion Global Payroll User Guide:

http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf
Document Updates
This document is based on the most current application release as of the document’s publication
date. Content is updated as needed only to reflect major changes to existing features or when
significant new features are added to the UAE localization. For this reason, it is possible that some
minor UI differences may exist between the version being implemented and the version described in
this document.
CHANGE RECORD
DATE VERSION CHANGE REFERENCE
17-July-2015 1.1 Document updated for Release 10 Features. Included and
updated sections:
Calculation Cards
Monthly Gratuity Accrual
Emirati IPE Consolidated Report
Payroll Balance Exception Report
Deductions Report
05-Nov-2015 1.2 Document updated for Release 10 Patch Bundle Features.
Included and updated sections:
Calculation Cards
Social Insurance Calculations
Monthly Reports

DATE VERSION CHANGE REFERENCE
05-Feb-2016 1.3 Document updated for Release 11 Features. Included and
updated sections:
Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF)
Payroll Definitions
Payroll Validation Report
Disabled Workers Report
Reverse or Correct Termination
05-Sep-2017 1.4 Document updated for Release 13.17.08 Features. Included and
updated sections:
Payroll Cycle Flow
Wage Protection System: Request For Refund Report
ADRPBF New Hire Report
ADRPBF Termination Report
New Payroll Relationship: Candidate Person Type
Calculation Card name change
Added Grade Rate for Cost of Living and Grade Allowance
Involuntary Deduction Court Order
Third-Party Organization or Person
01-Dec-2017 1.5 Third-Party Payment Register Report
25-Jan-2018 1.6 Document updated for Release 13.18.02 features. Updated
sections:
Person Social Insurance Calculation Card
Third-Party Organization
UAE Specific Retro
10-Apr-2018 1.7 Document updated for Release 13.18.05 features. Updated
sections:
End of Service Details Calculation Card
18-Mar-2019 1.8 Social Insurance Contributions when on Unpaid or Sick Leave
8-Nov-2019 1.9 Updated to new template with updated Screenshots.
17-Jan-2020 2.0 Document updated for Release 13.20.01 features. Included and
updated sections:
Employer Social Insurance or Pension Fund Calculation Card.
SSSF Fund type added in Social Insurance Calculation.
Added Sharjah Social Security Fund (SSSF) under Social
Insurance Calculation.
Updated headings Unpaid and Sick Leave to include SSSF fund
type.
1-Jul-2020 2.1 Updated Wage Protection System: Salary Information File
screenshot and update some text
12-Mar-2021 2.2 Social Insurance or Pension Fund Overrides
09-Jun-2021 2.3 Updated Section: Social Insurance Calculation for GCC Citizens
31-Jan-2022 2.4 Gratuity Calculation: Involuntary Termination
11-Jul-2022 2.5 Contributory Salary limit changes
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PAYROLL DATA
Person and Employment Payroll Data

For a person to be processed in payroll a payroll relationship must be defined for the same. This section describes specific
requirements for UAE in terms of payroll relationships including the UAE-specific information needed for payroll that must be captured
in the employment and payroll relationship data
PAYROLL RELATIONSHIPS, TERMS AND ASSIGNMENTS
Payroll Relationship represents the relationship of the person with the Payroll Statutory Unit (PSU). This varies from country to country,
but essentially no balance aggregation is performed above this level for a person.
Each country defines the person types for which a payroll relationship is created. In general, to be processed in payroll, a person must
have a person type of Employee, Contingent Worker, Candidate or Beneficiary.
In UAE, the payroll relationship type Standard is used for person type Employee.
You can also create a payroll relationship for other person types such as contingent worker and nonworker.
• If the nonworker type is NonWorker Paid, the payroll relationship is Sytandard.
• If the nonworker type is NonWorker, the payroll relationship must be of type Element Entries Only.
• If the nonworker type NonWorker Unpaid, no payroll relationship is created.
• For contingent workers, the payroll relationship is of type Element Entries Only.
• For employee candidate, the payroll relationship is Standard.
• For contingent worker candidate, the payroll relationship is of type Element Entries Only.
For UAE, a single payroll relationship is created per relationship type. In case of rehire, the employee is treated as a new employee and
so there is only one payroll relationship per person. For UAE, the payroll relationship rule Continuous Period of Service (C) is
predefined.
Note: Payroll relationship rule Continuous Period of Service (C) implies that when the HR user creates a new Work Term, a check is
made for a Payroll Relationship of the same type and PSU. If one exists, the LSED of the payroll relationship will be validated. If it is
greater than the Term start date, the Work Term will be attached to it. If it is less than the Term start date, a new Payroll Relationship
will be generated. If one does not exist, a new Payroll Relationship will be generated. When a Work Term is terminated, if it is the last
active Work Term associated with the Payroll Relationship, the Payroll Relationship will also be terminated.
Note: You can find the predefined data for legislation rules in the Oracle_Fusion_HRMS_UAE_Payroll_Data.xls on My Oracle Support
(MOS).
UAE has a requirement to handle multiple assignments within a legal employer. A person may have multiple assignments within
different terms. Possible valid combinations are:
• 1 Payroll Relationship – 1 Term – 1 Assignment
• 1 Payroll Relationship – 1 Term – n Assignments

• 1 Payroll Relationship – n Terms – n Assignments
Social insurance deduction is calculated at payroll relationship level. Earnings related to social insurance are considered at all the three
levels, that is, Relationship, Terms, and Assignments.
UAE-specific data must be captured at a payroll relationship level and the calculation of some country specific allowances is derived
from this. To capture this information, four flexfields are enabled for the UAE at the payroll relationship level:
Note: The additional information section includes the attributes “MOHRE Employee ID”, “WPS Agent Employee ID”, and “WPS Account
Number” which are required for the Wage Protection System statutory report.
If data is migrated from a legacy system, this UAE-specific field must be populated. The following table shows the attributes of this
flexfields for record PAY_PAY_RELATIONSHIPS_DDF (DESCRIPTIVE_FLEX_CONTEXT_CODE = AE):
Table 1. PAYROLL RELATIONSHIP DATA Flexfields UAE
APPLICATION_COLUMN_NAME END_USER_COLUMN_NAME LOOKUP DESCRIPTION
Accommodation
REL_INFORMATION1 ACCOMMODATION_PROVIDED HRC_YES_NO Provided
Transportation
REL_INFORMATION2 TRANSPORTATION_PROVIDED HRC_YES_NO Provided
MOHRE
REL_INFORMATION3 ORA_HRX_AE_MOL_EMPLOYEE_ID ORA_HRX_AE_NUM_14 Employee ID
WPS Account
REL_INFORMATION4 ORA_HRX_AE_WPS_ACCOUNT_NUMBER ORA_HRX_AE_NUM_16 Number
WPS Agent
REL_INFORMATION5 ORA_HRX_AE_WPS_Agent_Empl_ID ORA_HRX_AE_NUM_9 Employee ID

CONTRACT DATA
Contract data must be captured for every payroll relationship, which also affects gratuity processing. For this reason, it is strongly
recommended that UAE payroll customers use an employment model that includes contract: either single assignment with contract, or
multiple contracts with single assignment.
The UAE has the following 2 contract types:
• Fixed Contract
• Unlimited Contract
The flexfield Employment Status is enabled to capture UAE specific contract details.
If data is migrated from a legacy system, this UAE-specific field must be populated. The following table shows the attributes of this
flexfields for record PER_CONTRACT_LEG_DDF (DESCRIPTIVE_FLEX_CONTEXT_CODE = AE):
Table 2. CONTRACT DATA Information Flexfields UAE
APPLICATION_COLUMN_NAME END_USER_COLUMN_NAME LOOKUP DESCRIPTION
Employment
CTR_INFORMATION1 EMPLOYMENT_STATUS HRX_AE_EMPLOYMENT_STATUS Status
Calculation Cards
Calculation cards functionality is used to capture data needed for payroll processing that cannot be captured in global fields. These
cards are used to capture data at the organization level as well as the person level.
The UAE localization provides two predefined cards at the payroll statutory level (PSU). These are:
• Employer Social Insurance or Pension Fund Details
• Employer Gratuity Details
At the person level, there are three predefined cards:
• Employee Social Insurance or Pension Fund Details card
• End of Service Details card
• Court Orders Calculation
The flexfield structure used to store information entered in the calculation cards is described in
Oracle_Fusion_HRMS_UAE_Payroll_Data.xls on My Oracle Support (MOS).

EMPLOYER SOCIAL INSURANCE OR PENSION FUND CALCULATION CARD
The Employer Social Insurance or Pension Fund Details card uses the following information for social insurance calculation at the legal
entity level:
• Employer Sector: The employer sector can be government sector, military sector or private sector. The deduction rules are
applied based on the type of sector you choose.
• Employer Number: The two digit number is issued by the Social Insurance Office to Government Agencies and is used in the
Monthly Contribution – Government Sector statutory report.
• Contributory Salary Reference Formula: You can define the formula that calculates the contributory salary at the legal entity
level. The contributory salary value is derived from this formula and is used as the reference value for social insurance calculation.
This formula must have the value returned using the variable CONTRIBUTORY_BASE. For additional details on the calculation,
refer to the section on social insurance calculation.
• Social Insurance Fund Type: The social insurance fund type (Applicable to Release 10 and later) can be either Abu Dhabi
Retirement Pensions and Benefits Fund, General Pension and Social Security Authority or Sharjah Social Security Fund. The
deduction rules for social insurance are applied based on the social insurance fund type.
Note: You cannot change the fund type, if the payroll is processed for the payroll statutory unit.
To enter or modify this information:
1. Sign in to the Oracle Fusion application using a role that has the profile of a superuser and privileges to create all
organizational structures:
2. Select Setup and Maintenance from the Navigator:

3. Navigate to task Define Legal Entities for Human Capital Management:

4. Select the legal entity through Selected Scope, for which data needs to be added and select the Legal Entity Calculation Cards
task:
5. Select the Employer Social Insurance or Pension Fund Details Card from the given list. If no card exists, click Create. Select
the Employer Social Insurance or Pension Fund Details and click Continue. The Manage Calculation Cards page appears:
6. Enter required details in the Payroll Statutory Unit Social Insurance Details:

Social Insurance or Pension Fund Overrides
The delivered calculation value definitions can be overridden at the PSU level using the Employer Social Insurance or Pension Fund
calculation card.
All the calculation overrides predefined for UAE are listed in the Oracle_Fusion_HRMS_UAE_Payroll_Data.xls on My Oracle Support
(MOS).
New calculation value definitions are provided to override the UAE social insurance rates or amounts, as shown below:
Calculation Value Definition Name Calculation Type
Employee Social Insurance or Pension Fund Override Amount Flat Amount
Employee Social Insurance or Pension Fund Override Rate Flat Rate
Employer Social Insurance or Pension Fund Override Amount Flat Amount
Employer Social Insurance or Pension Fund Override Rate Flat Rate
Value Definitions of calculation type ‘Flat Amount’ are used to enter the Amount value and Value Definitions of calculation type ‘Flat
Rate’ are used to enter the Percentage/Rate value. Multiple Range values can be entered for these value definitions.
1. Enter override details in the tab ‘Enterable Calculation Values on Calculation Cards:
2. Select the calculation value to override, from the displayed values

3. Select ‘Employee Social Insurance or Pension Fund Override Rate’ to override UAE Employee Social Insurance rate,
‘Employer Social Insurance or Pension Fund Override Rate’ to override UAE Employer Social Insurance rate. Enter the range
and rate, as shown below:
Note: Use ‘Employee Social Insurance or Pension Fund Override Amount’, ‘Employer Social Insurance or Pension Fund Override
Amount’ override to enter the flat amount range.
If the range entered in Amount override and Rate override overlap, then rate value is used for social insurance contributions.

4. Enter an integer value for other calculation value definitions (except the overrides provided above for UAE Social Insurance
contributions) for example, IPE contribution rates, minimum or maximum salary, or minimum or maximum age.
Note: If the maximum salary or employer rates are overridden at the PSU level using the new value definitions then the same value
should be entered as an override for the following value definitions, used in the IPE social insurance calculations, for GCC citizens.
Calculation Value Definition Name

United Arab Emirates Employer Rate in Government Sector
United Arab Emirates Employer Rate in Private Sector
United Arab Emirates Maximum Salary in Government Sector
United Arab Emirates Maximum Salary in Private Sector
EMPLOYER GRATUITY DETAILS CARD
The gratuity card contains the payroll statutory unit (PSU) gratuity details and uses the following information for gratuity calculation at
the legal entity level:
• Calculation Basis: The amount of gratuity is based on the salary per day of the employee which will differ based on whether you
choose 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 calculation basis uses 365 days in a year whereas the fixed calculation basis
uses 360 days.
• Salary Formula: You must define your own salary formula for gratuity calculation. Once you have defined the salary formula, you
can select it here. The formula must return the values using variable MONTHLY_SALARY. Additional details on the calculation are
provided in the section on gratuity calculation.
• Reference Formula: You can define your own reference formula to calculate the paid gratuity amount and select it here. The
formula must return the values using variable PAID_GRATUITY. This overrides the amount calculated by the default reference
formula in the End of Service Details card in the gratuity details calculation component, and will be used as the Maximum Gratuity
Accrued at the Payroll Period End Date in the Monthly Gratuity Accrual calculation.

To enter or modify this information:
1. Follow steps 1-5 used for Employer Social Insurance Details or Pension Fund Calculation Card.
2. Select the Employer Gratuity Details:
3. Enter required details in the Payroll Statutory Unit Gratuity Details:
PERSON SOCIAL INSURANCE CALCULATION CARD
The calculation component on the employee social insurance card corresponds to the social insurance contribution payroll deduction
element, defined at the legislative level. The employee social insurance component details section captures additional information used
to calculate the deduction. When the employee social insurance calculation card is created, the social insurance calculation component
and the social insurance calculation components details record are automatically created. You can create additional calculation
component details such as Social Insurance Contributory Salary Override and Social Insurance Contributory Salary Adjustment
Amount.
The social insurance card is automatically created when the new hire process for an employee is completed, provided the employee
citizenship information is specified. If the citizenship information is not specified, then the social insurance card must be created
manually for this employee.
For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle Fusion Payroll or Payroll Interface.
To enter this information:

1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager:
2. Select the Payroll task from the Navigator:
3. Navigate to Calculation Cards task and select the person for whom you want to review the calculation card:

4. Search for and select the employee for whom you want to create the card.
5. Select the Employee Social Insurance or Pension Fund Details Card from the given list. The Calculation Cards page is
displayed.

Note: If no card exists, select Create and create the calculation card manually.
6. Enter details or edit the Employee Social Insurance or Pension Fund Details:
Note: For the UAE localization, you must associate the social insurance card to a person for running the payroll.
Consider the following points when entering the data:
Citizenship: Social insurance deductions are processed only for the Gulf Cooperation Council (GCC) citizens. You must specify the
citizenship of the employee as the social insurance card will be processed based on this information.
Method of Obtaining Nationality: This information is used for reporting purposes. The method of acquiring nationality could be by
birth, residence, marriage or any other factor.
Date of Acquiring Nationality: The date of acquiring nationality cannot be earlier than the person's date of birth.
Exception Type: Social insurance deductions are processed based on the exception type:

• Employee pays both employer and employee contributions
• Employer pays both employee and employer contributions
• Employer pays contribution monthly and employee pays later
Depending on the selected exception type, the employee or the employer pays the contributions. If no value is specified, then the
employer and the employee each pay their contributions.
Registered for Social Insurance: The label for this field has been changed from Registered for Social Insurance to Registered for
Social Insurance or Pension from Release 10. This checkbox indicates whether to process social insurance calculations for employees.
For employees who are Emirati citizens and have their Social Insurance Numbers specified during the new hire process, this checkbox
is selected automatically indicating that social insurance calculations must be processed. For employees who are non-Emirati citizens,
this checkbox remains unselected indicating that social insurance calculations will not be processed. Employees registered for social
insurance are not eligible for gratuity or monthly gratuity.
Paid from another Government Sector: Select this checkbox to specify if the employee receives additional pay from another
government sector organization. You can select the checkbox by editing the automatically created card.
Sector or Department Name: This is a free text field. This does not affect the social insurance calculation, but used for reporting
purposes.
Exempt from SI Contribution Difference: This checkbox indicates whether to process the difference in the employer's subscription.
The employee will normally pay the difference in the contribution unless the flag is set and the Country of Citizenship has agreed to pay
the difference on behalf of the employee.
Country of Citizenship Pension: This checkbox indicates whether or not an employee is receiving a pension from their country of
citizenship. This does not affect the social insurance calculation, but used for reporting purposes.
Pension Authority: This is a free text field to enter the name of the authority paying the pension. This information is used for reporting
purposes.
Date of Retirement: This field captures the retirement date. This information is used for reporting purposes.
Contribution Bank Account Details: Lists the third-party organizations that will receive the Social Insurance contributions. See Third-
Party Organization section.
7. Enter Override or Adjustment amounts:
To enter the employee social insurance contributory salary override or adjustment amounts, you must manually create the calculation
component details. Click Create to create the calculation component details and enter the required information:

• Social Insurance Contributory Salary Override: You can additionally create the calculation component details for Social
Insurance Contributory Salary Override, if applicable. You use the override amount to specify a social insurance contribution
amount that is different from the social insurance balance, or the amount derived from the reference formula at the legislative level.
This is processed just in the first month of joining or in the month of January every year. This amount, if specified, is applicable for
the whole year.
• Social Insurance Contributory Salary Adjustment: You can additionally create the calculation component details for Social
Insurance Contributory Salary Adjustment Amount, if applicable. You use the adjustment amount to make any changes to the
social insurance contributory salary amount. This is only applicable for private sector employees and can be specified in the any
time during the year. However a salary adjustment will not be processed in the first month of payroll processing for the employee
(when a new hire) or in the first month of the year (January).
Click the Associations tab to ensure that the calculation card is associated with the appropriate TRU and Employment Terms:

Note: The calculation card is associated automatically to the appropriate TRU and Employment Terms.
END OF SERVICE DETAILS CALCULATION CARD
The component in the End of Service Details card corresponds to the payroll element gratuity contribution, defined at the legislative
level. This card captures additional information related to gratuity and end of service details.
The End of Service Details card has two main components:
• Gratuity details
• End of Service details
Gratuity Details
When you create the End of Service Details card, the gratuity details component and components details record is created
automatically. The gratuity details component is used to enter data that impacts the calculation of gratuity payment.
On termination, you can enter an override amount to be paid to the employee as gratuity. This amount overrides the gratuity amount
calculated using the reference formula defined at the payroll statutory unit level and the legislative level formula calculation.
For example, if the primary term is a fixed contract type and the subsequent terms are unlimited, then the amount of gratuity calculated
is based on fixed contract type instead of reduced amount for the unlimited contract. In this case, you can enter an override amount at
the payroll relationship level.
Gratuity card is created automatically upon employee termination, provided the Registered for Social Insurance checkbox is unselected
for the employee. When the gratuity card is created, the gratuity component, component details, and the association are automatically
created.
The automatic card creation is enabled only if the Payroll Product Usage is set to Oracle Fusion Payroll or Payroll Interface.
As workers registered in the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) or Sharjah Social Security Fund (SSSF) are
not eligible for end of service payments there will be no automatic card creation if the Social Insurance Fund Type is ADRPBF. This is
applicable from Release 10 onwards.
Note: A gratuity card is not created automatically when a UAE citizen registered with ADRPBF or SSSF is terminated.

End of Service Details
You use the End of Service Details card to specify whether the employee wants to claim the end of service remuneration or pension
from the social insurance office. In this card, you can also specify the bank information where the payment has to be made.
The end of service details component is used mainly for reporting purposes in the Form 2 and submitted to the social insurance office.
To enter this information:
1. Follow steps 1-4 used for employee social insurance or pension fund details card.
2. Enter or edit the required information:
3. Click Create to create the calculation component details and enter the required information in the Override Amount field:
Note: To enter the gratuity details override amount, you must manually create the calculation component details.
• Override Amount: You can enter an override amount to be paid to the employee as gratuity. If override amount is specified, this amount
overrides the reference formula for gratuity calculation defined at the PSU level, and also the calculation formula defined at legislative level.
• Latest Gratuity Payment Date: This field indicates the last payment date of gratuity for the latest work relationship. On termination of a work
relationship the value for the latest gratuity payment date is generated automatically as the last day of the termination month.

4. To create End of Service Details calculation component details, click Create and select End of Service Details:
• End of Service Remuneration or Pension: used to specify whether the employee wants to claim the end of service remuneration or
pension from the social insurance office.
• Bank Name, Branch, Account Number: bank information where the payment must be made.
5. Click the Associations tab to ensure that the calculation card is associated with the appropriate TRU and Employment Terms:
Note: The calculation card is associated automatically to the appropriate TRU and Employment Terms.
STATUTORY DEDUCTIONS AND GRATUITY CALCULATION

The data entered at the TRU level and at the person level are the starting point for calculating statutory deductions and gratuity
payment, if applicable.

Based on legislative requirements UAE localization has predefined a setup with the parameters to be used in the calculation. These
parameters are stored in the legislative repository for calculation information.
Social Insurance Calculation

Social Insurance calculations differ based on the fund type specified in the Employer Social Insurance Card.
The three types of calculations are:
• General Pension and Social Security Authority (GPSSA)
• Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF)
• Sharjah Social Security Fund (SSSF)
GENERAL PENSION AND SOCIAL SECURITY AUTHORITY (GPSSA)
Social insurance is applicable to all Gulf Cooperation Council (GCC) citizens who work in the UAE and are paid there. This contribution
is normally paid both by the employer and the employee, but there are some exceptions to this behavior that can be defined at the
person social insurance calculation card level.
Contributions are calculated as percentages of a contributory salary. The contributory salary components are elements like basic
compensation, accommodation and transport allowances. The legislation determines which elements are liable to social insurance
contributions, whereas the amounts and definitions of the same depend on the employer’s regulations.
For private sector employees:
• The amount of the contributory salary can be overridden at the person level.
• If this amount is not entered at the individual level, you can define a formula used to calculate the contributory salary at the legal
employer level.
• Finally, if neither individual override, nor legal employer formula, are defined, the contributory salary uses the value of earnings
elements that are subjected to social insurance. These elements are identified through secondary classification and feed the
balance Subject to Social Insurance. Further details on how UAE has defined element classifications and balances can be found
in the related sections.
• The contributory salary is set once a year in the first payroll run of the year. If there is a need to correct the contributory salary that
has already been set, then you can use the Social Insurance Contributory Salary Adjustment component of the Employee Social
Insurance Details calculation card. The contributory salary will be modified in the next, normal, payroll run.
• The contributory salary has a monthly minimum value and a monthly ceiling. This means that if the monthly social insurance
income is lower than the minimum value, contributions are calculated on the minimum value. If the monthly social security income
exceeds the monthly ceiling, contributions are due just on the part up to the ceiling. For the UAE, a minimum monthly contributory
salary of 1000 AED and monthly ceiling of 50000 AED are predefined.
• For Private Sector, the employee contribution is 5% and employer contribution is 12.5%. But if the exception type is Employee
pays both contributions, then system adds a private sector subsidy in Employer contribution (12.5% + 2.5% =15%).
If the employee’s payroll relationship is terminated in the month, no contribution is deducted. If termination date is end of the month the
full contribution is deducted.
For the government sector:
• The contributory salary uses the value of earnings elements that are subjected to social insurance. These elements are identified
through secondary classification and feed the balance Subject to Social Insurance.
• For Government Sector, the employee contribution is 5% and the employer contribution is 15%.

• There is no floor limit to the contributory salary and monthly ceiling of 300000 AED is predefined.
ABU DHABI RETIREMENT PENSIONS AND BENEFITS FUND (ADRPBF)
All Abu Dhabi based private employers and the majority of government sector organizations are under the authority of the Abu Dhabi
Retirement Pensions and Benefits Fund (ADRPBF). This contribution is normally paid both by the employer and the employee, but
there are some exceptions to this behavior that can be defined at the person social insurance calculation card level.
employer level.
• For Private Sector, the employee contribution is 5% and employer contribution is 15%.
If the employee’s payroll relationship is terminated in the middle of a month, the contributory salary will be calculated based on the
number of calendar days in the month that the employee has worked. If the termination date is at the end of the month, the full
contribution will be deducted.
through secondary classification and feed the Subject to Social Insurance balance.
• There is no floor or ceiling limit to the contribution salary.
SHARJAH SOCIAL SECURITY FUND (SSSF)
Social insurance is applicable to all Gulf Cooperation Council (GCC) citizens who work in the UAE and are paid there. The employer
and employee normally pay this contribution, but there are some exceptions to this behavior that can be defined at the person social
insurance calculation card level.

employer level.
• For Private Sector, the employee contribution is 5% and employer contribution is 15%.
If the employee’s payroll relationship is terminated in the month, no contribution is deducted. If termination date is end of the month the
full contribution is deducted.
through secondary classification and feed the balance Subject to Social Insurance.
• There is no floor or ceiling limit to the contribution salary.
Social Insurance Contributions when on Unpaid Leave or Sick Leave

Different rules apply when an employee is on unpaid leave or sick leave based on the authority that regulates social insurance and the
type of leave. Both unpaid leave and sick leave affect the calculation of social insurance.
UNPAID LEAVE: ADRPBF
Social insurance is calculated and paid in full for both the employee and the employer.
The employee pays the employee contributions and the employer pays the employer contributions, but when the employee’s net pay is
insufficient for a full deduction of social insurance the employer pays the missing social insurance contributions on the employee’s
behalf.
Any social insurance contributions paid by the employer on the employee’s behalf may be regarded as a loan that should be settled by
the employee.
UNPAID LEAVE: GPSSA AND SSSF
Social insurance is calculated and paid in full for both the employee and the employer.
The employee is responsible for paying both the employee and the employer contributions, which can be made in one of three ways:
• The employee makes the payments directly to the social insurance authority

• The authority agrees to treat the amount as a loan that is settled by adding the instalments to the employee contributions when
they return to work
• The employer agrees to pay the contributions and treat the amount as a loan
SICK LEAVE: ADRPBF, GPSSA AND SSSF
When on sick leave the employee will only pay social insurance contributions on the actual pay that is subject to social insurance for that
period, however the employer contributions are based on the amount that should be subject to social insurance for that period, before
any deductions for sick leave.
Please follow the section Social Insurance calculations when on Unpaid or Sick Leave setup to calculate the social insurance
contributions when on unpaid or sick leave.
SOCIAL INSURANCE CALCULATIONS WHEN ON UNPAID OR SICK LEAVE SETUP
When creating the absence element (unpaid or sick), choose the option “Select rate to determine absence deduction amount for the
following question in the element template:
Create balance feeds for unpaid leave element
Leave without Pay

1. In the My Client Groups section click Show More.
2. Navigate to the Balance Definitions task in the Payroll work area

3. Search for name Leave Without Pay in the appropriate Legislative Data Group
4. Select Balance Feeds
5. Search for and Select Element Name <Unpaid Leave> Entitlement Result from lookup
6. Select Input Value Unit (Days)
7. Select Add
8. Select Submit
Leave Without Pay Amount

1. Search for name Leave Without Pay Amount in the appropriate Legislative Data Group
3. Search for and Select Element Name <Unpaid Leave> Entitlement Result from lookup
4. Select Input Value Net Pay
5. Select Subtract

6. Select Submit
Create balance feeds for Sick leave element
Sick Leave Amount

1. Search for name Sick Leave Amount in the appropriate Legislative Data Group
3. Search for and Select Element Name <Sick Leave> Entitlement Result from lookup
4. Select Input Value Net Pay
5. Select Subtract
6. Select Submit
Social Insurance Calculation for GCC citizens

Social Insurance is now applicable to all Gulf Cooperation Council (GCC) citizens. The legislation was changed to have a reciprocal
agreement between all 6 GCC countries (United Arab Emirates (AE), Kuwait (KW), Saudi Arabia (SA) Bahrain (BA), Sultanate of Oman
(OM) and Qatar (QA)).

Social Insurance contributions are calculated and deducted from all employees who have a GCC nationality and are working in any of
the GCC countries in accordance with the Unified Law of Insurance Protection Extension.
Employee Social Insurance Calculation Card has been enhanced to capture additional information:
• Whether or not it has been agreed that the country of citizenship will pay any difference in contribution amounts.
Note: Currency Conversion Rate across the country of citizenship and country of employment needs to be considered for SI calculation
for GCC citizens working in United Arab Emirates. You must set up conversion rates before processing SI for GCC citizens.
The contributory salary for GCC citizens working in UAE can be set using below balances.
The following table illustrates the balances used, and the expected element balance feeds:
Citizenship Sector Balances Notes
Bahrain Government Bahrain Social Allowance Base in Government A rule to limit social allowance to
Sector: User fed with social allowance elements that 150BHD is applied. This is applicable
represent Social Allowance only
if the contributory salary is derived
from either of the contributory salary
Bahrain Employee Government Sector Contributory
balances, or from the subject to
Salary Base
social insurance balance.
Bahrain Private Bahrain Employee Private Sector Contributory Salary A rule to limit fixed allowances to
Base 100% of basic salary is applied. This
is applicable if the contributory salary
Bahrain Allowance Base in Private Sector: User fed is derived from either of the
with fixed allowance elements contributory salary balances, or from
the subject to social insurance
balance.
Kuwait Government Kuwait Employee Government Sector Contributory

Salary Base
Kuwait Private Kuwait Employee Private Sector Contributory Salary

Base
Oman Government Oman Employee Government Sector Contributory

Salary Base
Oman Private Oman Employee Private Sector Contributory Salary

Base
Saudi Government Saudi Employee Government Sector Contributory

Salary Base
Saudi Private Saudi Employee Private Sector Contributory Salary

Base
UAE Government UAE Employee Government Sector Contributory

Salary Base
UAE Private UAE Employee Private Sector Contributory Salary

Base

SOCIAL INSURANCE DEDUCTIONS
Social insurance contribution is calculated through the deduction Social Insurance that is part of the component group Social Insurance.
Calculations are done through element Social Insurance.
To view details on component groups, calculations and elements:
1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager.
2. Navigate to the Payroll Calculation Information task in the Payroll work area
3. Select SI Deduction and view the details

LEGISLATIVE REPOSITORY FOR CALCULATION INFORMATION
Parameters used in the calculation of social insurance are stored in the legislative repository for calculation information. These
parameters are predefined by the UAE localization and cannot be modified in the implementation phase.
To view predefined parameters:
1. Log in with a Payroll Manager role.
2. Navigate to the Payroll Calculation Information task in the Payroll work area.
3. Select SI Deduction.

4. Open the Calculation Factors for the related element:
5. By clicking on Range Values details of the calculation factors are displayed:
Gratuity Calculation
Persons working in UAE are entitled to an additional payment upon termination which is called Gratuity. The entitlement to this payment
is accrued during the work relationship.
Gratuity calculations are triggered only for persons who are not eligible or not registered for social insurance. The gratuity amount to be
paid is driven by UAE labor laws. If you are not following the UAE labor laws, you can define your own formula for gratuity processing.
The following two options are available:
• You can define your own formula and create a setup according to the values to be returned to you formula run results. In such a
scenario, you may not need to use the localization solution for gratuity processing.
• You can define your own reference formula gratuity processing, which substitutes the gratuity formula defined at the legislative
level. If a user-defined formula exists, then the seeded formula executes it.
The localization solution for gratuity processing uses the following rules:

• The duration of service and the contract type (fixed or unlimited) determines the number of days of gratuity payment to which the
payee is entitled per year of service. These days are retrieved from the legislative repository for calculation information. Note that
the duration of service can be reduced by unpaid or unauthorized absences. This is obtained by creating elements for Unpaid
Leave classification and attaching this element to the absence type. If an absence with this newly created absence type is
recorded, the Unpaid Leave element’s days input value will feed the Leave Without Pay balance. In the Gratuity formula, the Leave
Without pay balance is used to get the unpaid absences.
• The base salary for gratuity payment is calculated through the salary formula selected at the legal employer level.
• If the person is terminated, contract type and termination initiator is checked and amount is paid:
– If termination initiator is employer and the employee has completed more than one year in service, then the complete gratuity
accrued is paid to the employee.
– If termination initiator is the employee, the application fetches the payment factor using the contract type and period of service.
Payment factor is available in the legislative repository for calculation information.
GRATUITY ENTITLEMENT AND PAYMENT
Fixed Contracts
Gratuity Entitlement: An employee is entitled to 21 days salary for the first 5 years and 30 days salary for each additional year.
Gratuity Payment: If employer terminates the employee, the employee is paid the complete gratuity that has accrued.
If employee has resigned before the contract period, and has completed less than five years in service, the employee is not paid
gratuity. But if the employee has completed more than 5 years, then they are paid the complete gratuity amount upon termination.
If the contract has expired and the employee has completed more than one year in service, complete gratuity amount is paid upon
termination.
Unlimited Contracts
Gratuity Entitlement: An employee is entitled to 21 days salary for the first 5 years and 30 days salary for each additional year.
Gratuity Payment: If employer terminates the employee, the employee is paid the complete gratuity that has accrued.
If employee has resigned before completing one year, then no gratuity is paid. If the employee has completed between 1 to 3 years,
one-third gratuity is paid. If the employee has completed between 3 to 5 years, two-thirds gratuity is paid. If the employee has
completed more than 5 years, complete gratuity is paid.
CALCULATION GROUPS AND CALCULATIONS
Gratuity payment is calculated through supplemental earnings Gratuity Payment that is part of calculation group Gratuity. Calculations
are done through element created as a Gratuity Payment.
To view details on calculation groups, calculations and elements:
1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager:
2. Navigate to the Payroll Calculation Information task in the Payroll work area.
3. Select GRATUITY Calculation and view the details.

LEGISLATIVE REPOSITORY FOR CALCULATION INFORMATION
To view predefined parameters:
1. Log in with a Payroll Manager role
2. Navigate to Payroll Calculation Information task in the Payroll work area.
3. Select GRATUITY Calculation.
4. Open the Calculation Factors for the related element:

The calculation factors are used for calculating gratuity payments (gratuity bands represent the eligibility months).
5. Click Range Values. Details of the calculation factors are displayed:
Monthly Gratuity Accrual

The application calculates the accrual of gratuity on a monthly basis. The amount calculated is the amount that an employee would be
entitled to, if they were terminated at the end of that month and if they were eligible for payment. The monthly gratuity accrual
calculation is done through the Employee Gratuity Accrual Initiator element. The application keeps a record of the total accrued amount
and the incremented accrued amount (periodic difference).
Manually attach the Employee Gratuity Accrual Initiator element to employees for whom a monthly gratuity accrual is required.
The monthly gratuity accrual considers the following details to calculate the gratuity:
• Date of termination: The current pay period end date is taken as the date of termination.
• Length of service: All types of paid leave are considered to calculate the length of service. Unpaid leave is not included.
• Base Salary: The base salary for gratuity payment is calculated through the salary formula selected at the legal employer level.

• Termination Initiator: The calculation assumes the employer as the termination initiator. And the employee is entitled to the full
amount.
• Probation: If the employee is on probation, the accrual amount is zero.
• Contract type: The entitlement is based on Contract type and is captured on Person Management.
Note: For information on Person Management Details, refer Section Person Data Setup of Oracle Fusion HRMS (United Arab
Emirates): HR Implementation and Functional Considerations document.
• Entitlement :
– Fixed Contract: An employee is entitled to 21 days salary for the first 5 years and 30 days salary for each additional year.
– Unlimited Contract: An employee is entitled to 21 days salary for the first 5 years and 30 days salary for each additional
year.
• Maximum Limit: The total amount accrued must not be greater than twice the monthly salary.
• Monthly gratuity accrual calculations will be performed only for current employees when the Registered for Social Insurance
check box is not selected on the Employee Social Insurance Details card. If the employee is due to be terminated during the pay
period, full gratuity will be calculated instead of the monthly accrual.
ELEMENTS
Elements are the building blocks of payroll and benefits. There is no limit to the number of elements that can be defined. Policies or
business rules that govern the allocation of these elements to workers can be specified at the element level.
Elements can represent:
• Earnings, such as salary, wages, and bonuses
• Compensation, such as employee stock purchase and insurance plans
• Absences from work
• Tangible items distributed to persons, such as tools, uniforms, mobile phones, or computers
• Statutory deductions, such as employee taxes and social insurance
• Voluntary deductions, such as loans
• Involuntary deductions, such as court orders, as well as pretax deductions
• Employer taxes and other employer liabilities
Elements are grouped into primary classifications, such as Earnings and Voluntary Deductions. In a human resources department, you
can use the primary classifications to identify groups of elements for information and analysis purposes. In a payroll department, the
classifications control processing, including the sequence in which elements are processed and the balances they feed.
Oracle Fusion supplies many predefined elements (that cannot be modified at the implementation level), while additional elements can
be generated, defining certain types of compensation and payroll elements through templates.
Element templates include the elements, balances, balance feeds, and formulas required for payroll processing. Templates have
various rules associated with them which will be used to create data based on certain criteria. The template engine will get the values
for the rules from the template and process the seeded template structure to create appropriate data that is required.

Using the template infrastructure, UAE localization has defined its structures for creating a standard set of elements for earnings, by
modifying a global template questionnaire.
When creating an element the questionnaire that guides you through the creation depends on the classifications selected for the
element itself.
Once you complete the questionnaire and submit the process, the relevant payroll objects are generated. You now have the ability to
edit these objects (using the review pages and the object navigator) to ensure they fully meet your business requirements.
Element Classifications
Global Payroll has defined a set of primary classifications and UAE localization has selected the ones that are applicable for the
country.
Additionally a set of secondary classifications and subclassifications have been defined specifically by the localization.
• Secondary classifications are used in the element template process to drive the questionnaire and also to create the element with
the needed characteristics.
• Subclassifications are used to control balance feeds and identify a sub type of the particular classification.
All the classifications predefined for UAE are listed in the Oracle_Fusion_HRMS_UAE_Payroll_Data.xls on My Oracle Support (MOS).
Secondary classifications and subclassifications can be created at implementation level and they do not have any impact on the UAE
predefined data.
PRIMARY CLASSIFICATIONS
The following primary classifications are enabled for the UAE localization:
• Absence Accruals
• Absences
• Balance Initialization
• Direct Payments
• Employer Charges
• Information
• Involuntary Deductions
• Pre-statutory Deductions
• Social Insurance Deductions
• Standard Earning
• Supplemental Earnings
• Voluntary Deductions
In the implementation phase, when creating an element though element template functionality, you are prompted to select the primary
classification for that element and this drives the questionnaire to use and also the characteristics of the element that will be created.
Notes:

The subclassifications Subject to Social Insurance and Subject to Unpaid Leave are defaulted for all elements with primary
classification Standard Earning. This implies that all these elements:
• Will be part of the contributory salary
• Will not be paid in case of unpaid leave
SECONDARY CLASSIFICATIONS
Secondary classifications are connected to primary classifications. The following secondary classifications have been defined for the
UAE localization:
Primary Classification Standard Earnings:
• Additional Allowance
• Basic Salary
• Children Social Allowance
• Cost of Living Allowance
• Grade Allowance
• Hourly Wage
• Housing Allowance
• Overtime Allowance
• Shift Allowance
• Social Allowance
• Transport Allowance
• Unpaid Leave
Primary Classification Voluntary Deductions:
• Loans
Primary Classification Involuntary Deductions:
• Court Order
The selection of the secondary classification will drive the questions of the element template and the characteristics of the element that
is created. For the allowances created as standard earnings these characteristics are described in more detail in the section of element
allowances.
SUBCLASSIFICATIONS
Subclassifications are connected to primary classifications. The following subclassifications are defined for the UAE:
Primary Classification Standard Earnings:
• Subject to Social Insurance
• Subject to Unpaid Leave

Primary Classification Information:
• Subject to Unpaid Leave
Primary Classification Absences:
All these five subclassifications are attributed by default to the elements created for the corresponding primary classification.
During implementation, if there is a requirement to define an element that is not a standard earning, but is part of the contributory
salary, the steps to follow are:
1. Define a new subclassification and the corresponding subclassification rule.
2. Feed the contributory balance with this subclassification.
REVIEWING CLASSIFICATIONS
1. To review classifications , log in with a Payroll Manager role
2. Navigate to the Element Classifications task in the Payroll work area
3. Select the appropriate Legislative Data Group (LDG) and view all the primary classifications defined for the legislation
connected to the selected legislative data group.

4. Select a specific classification to view secondary classifications and subclassifications defined for the primary classification.

Element Templates
A specific element template is available in UAE localization for the following primary classification:
• Standard Earnings
For all other primary classifications, the standard global template is used when creating UAE elements.
When selecting Standard Earnings as primary classification:
• If no secondary classification is selected or Basic Salary or Additional Allowance secondary classification if selected, then the
standard element template is followed and no specific UAE consideration is applied.
• If the other Allowances secondary classifications are selected, then allowances are created following UAE specific rules that apply
to the specific allowance type.
• If Unpaid Leave secondary classification is selected, an element with UAE specific characteristics for the UAE is created.
In the global standard template, the section of Calculation Rules is not displayed because the related global objects must not be
created for these elements since UAE specific objects must be created instead.
Viewing, for example, an element created with secondary classification Hourly Wage:

You can see that specific input values have been created and a fast formula (Test_Hourly_Allowance_AE_HOURLY_FF) is used to
perform the calculations for this type of allowance.
When selecting Voluntary Deductions as primary classification:
• If no secondary classification or End of Service Deductions secondary classification is selected, then the standard element
template is followed and no specific UAE consideration is applied.
• If the Loans secondary classification is selected, then deduction element is created following Global specific rules that apply to
loans.
From a template questionnaire perspective, there is no difference with the global standard template, but in this case, set of UAE-
specific objects are created in addition to the global ones.
Further information is provided in the element details section of the document.
AVAILABILITY OF ELEMENT TEMPLATE FUNCTIONALITY BASED ON PRODUCT LICENSE
The availability of features in element templates depends on the type of license you have.
HR-Only: As an HR-only customer, you get access to the basic version of the element templates. These templates create the element
and you need to create the input values, formulas, balances to meet your business requirements.
Payroll Interface: As a payroll interface customer, you get access to a number of payroll features which are not available to an HR-
only customer. This includes access to the full earnings element that will create the element, input values, formulas, balances. These
earnings elements can be processed through the calculation to Gross process which is also available to Payroll Interface customers.
Any other type of element, such as deductions, is created using the basic version of the element templates and you need to create the
input values, formulas, balances.
Payroll: A payroll customer gets access to the full set of earning and deduction templates. These templates create the element, input
values, formulas, balances.
Disclaimer Note: If you want to use an element in the payroll process, then the element must be created after the payroll
license is set. This creates the full set of data needed for payroll processing, such as element definition, input values,
balances, formulas. If payroll license is set after the element is created the above data will not be created.

SETTING UP LICENSES
1. Navigate to the Features by Country or Territory task using the Functional Setup Manager (FSM)
2. Search with Legislation Code or Legislation to verify the license.
You can enter following values:
• Human Resource or None: This must be set when customer is having an HR only license.
• Payroll Interface: This must be set when customer is HR only and has a payroll interface license.
• Payroll: This must be set when customer has both HR and Payroll licenses

Elements: Allowances, Unpaid Leave and Loans
Earning allowances, unpaid leave and loans are the elements for which UAE localization has predefined specific calculation rules.
ALLOWANCES
The calculation rules for the below allowances are generated when creating the element using the related template. Implementation
teams need to elect 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.
Children Social Allowance

The children social 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:
• Citizenship information in the calculation card for the person.
• 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.
• A range value for the seeded calculation value definition details Children Social Allowance. Allowance per child is based on the
value entered here.
To create the range value:
1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager.
2. Navigate to the Calculation Value Definitions task in the Payroll work area.
3. Select the calculation value definition details for Children Social Allowance:

4. Enter the value of the allowance per child by adding a row in Range Values
Note: The From Value must be 0, while any value can be chosen for the To Value since it does not affect calculation.
Note: The process of entering a value in calculation value definition details 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:
• Range value for the seeded calculation value definition details Cost of Living Allowance Percent.
• Range values for the seeded calculation value definition details 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 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.
Grade Allowance
The basic salary is a fixed amount that is paid to the employee according to their grade. Since rates can be entered for each grade, it is
suggested that you use grade rate functionality for it.
The following is the input needed to perform the calculation:
• Grades and grade rates must be setup following standard global process. The grade must be associated to the payee in the
Employment page.
• Create an element entry for the payee entering the grade rate ID as an input value entry for Grade Rate.
• Attach the Grade Rate to the seeded Value Definition “Grade Allowance Grade Rate”, instead of entering Grade Rate ID to the
input value.
Note: This change is applicable only for newly created elements in Release 13.
Hourly Basic Salary

For employees under hourly contract the amount paid monthly is based on the number of hours worked during the month. The hourly
rate depends on the grade of the employee.
The following input is required to perform the calculation:
• Create a grade and grade rate and associate it to the employee in Employment page and in Element entries as shown previously
in Grade Allowance.
• The value is calculated based on the hours worked in month * value returned from the grade rate table. Hours worked will be
entered as input value.
• Attach the Grade Rate to the seeded Value Definition “Hourly Basic Salary Grade Rate” instead of entering Grade Rate ID to the
input value.
Note: This change is applicable only for newly created elements in Release 13.
Housing Allowance
Housing allowance depends on the grade and marital status of an employee. The allowance can be a percentage (based on grade and
marital status) or an amount (based on grade or marital status). In case of percentage based allowance, the calculated allowance
amount can be subjected to a maximum and minimum limit.
If the employee avails accommodation that is provided by the employer, then the monthly paid allowance is zero.
An override feature is provided where you can enter the amount of housing allowance and then no calculations are performed.
The following input is required to perform the calculation:
• Housing allowance is paid to employee if accommodation is not provided by the employer. This information is tracked at payroll
relationship level and this value is defaulted to No in case there is no value entered at payroll relationship level.
• Marital status must be set for person in order to calculate the value of housing allowance and if no marital status is set, no
allowance is paid to the employee. Marital status is retrieved from the legislative information section.

• Create range values for the seeded calculation value definition details Housing Allowance Grade Rate for Married and Housing
Allowance Grade Rate for Single. In the value field of the range value UI, you can select the grade rate from the ones that have
been defined as grade rates.
• 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 if you have entered value of input value Rate value to be
used as Percent.
• Create range values for the seeded calculation value definition details Maximum Housing Allowance for Married, Minimum
Housing Allowance for Married, Maximum Housing Allowance for Single and Minimum Housing Allowance for Single. In
the value field for range value, you must enter minimum or maximum value depending on the marital status. These values are used
to get the allowance amounts if you have entered value of input value Rate value to be used as Percent. More specifically, if this
calculation option is selected, the rate is applied to this monthly salary basis. The resulting amount is compared with the Maximum
and Minimum values of the allowance and, in case of being out of range, is adjusted.
Note: The calculation of housing allowance (similar to other allowances) is triggered by creating an element entry for the payee and
parameters that will drive the calculation is entered as input values:
• Override Amount: allows overriding the final value of calculation.
• Rate Value to be used as: drives the calculation method.
Overtime Allowance
Overtime allowance gets paid to an employee for hours worked beyond regular hours on normal working days. The employee also gets
paid when they work on rest days or holidays.
The overtime rate is a percentage of the salary that depends on the grade and is different for hours beyond regular (on normal working
days) and hours on rest days.
• Attach a Gratuity Salary formula, in the Employer Gratuity PSU level Calculation Card, if not already attached. The value returned
by this is the base monthly salary that is converted to a hourly salary using ROUND((monthly_salary * 12)/(365 * 8),2)
• Create range values for the seeded calculation value definition details Overtime Allowance Grade Rate for Regular Days,
Overtime Allowance Grade Rate for Rest Days. In the value field of the range value UI, you must choose the grade rates that
are used to get the amount for rest and normal day overtime.

Shift Allowance
Shift allowance depends on the grade and may also depend on the nationality of an employee: the allowance can be in percent (based
on grade and nationality) or in amount (based on grade and nationality). In case of a percent based allowance, the calculated allowance
amount can also be subjected to a max and min limit.
An override facility is also provided wherein you can enter the amount and then no calculations are performed. The amount entered is
processed directly as the shift allowance.
• Create range values for the seeded calculation value definition details Shift Allowance Grade Rate for National, Shift Allowance
Grade Rate for Non-National. In the value field of the range value page, you must choose the grade rates, which are used to get
the shift allowance amount for UAE and no-UAE citizens.
• Create range values for the seeded calculation value definition details Minimum Shift Allowance, Maximum Shift Allowance. In
the value field of the range value UI, you must enter minimum or maximum value of the shift allowance. These values are used to
get the allowance amount if you entered the input value Rate value to be used as Percent.
Social Allowance
Social allowance depends on marital status of the employee and is paid only to UAE citizens.
• Enter the citizenship in the calculation card for the person.
• Marital status must be set for 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.
• Create range values for the seeded calculation value definition details 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
Transport allowance depends on the grade and marital status of an employee. The allowance can be a percentage (based on grade
and nationality) or an amount (based on grade or nationality). In case of percentage based allowance, the calculated allowance amount
can also be subjected to a maximum and minimum limit.
If transportation is provided by the employer, then the monthly paid allowance is zero.
An override feature is provided where you can enter the amount of transport allowance and no calculations are performed.
• Enter the transport allowance paid to employee if no transportation is provided by the employer. This information is tracked at
payroll relationship level and this value is defaulted to No, in case there is no value entered at payroll relationship level.
• Enter the citizenship in the calculation card for the person.
• Create range values for the seeded calculation value definition details Transport Allowance Grade Rate for National and
Transport Allowance Grade Rate for Non-National. In the value field of the range value, you can select the grade rate from the
ones that have been defined as grade rates.
• Attach a Gratuity Salary formula, in the Employer Gratuity Details card, if not already attached. The value returned by this formula
is used to take the base monthly salary for this allowance if you have entered value of input value Rate value to be used as
Percent.

• Create range values for the seeded calculation value definition details Maximum Transport Allowance, Minimum Transport
Allowance. In the value field of the range value, you must enter minimum or maximum depending on the marital status. These
values are used to get the allowance amounts if you have entered value of input value Rate value to be used as Percent.
ALLOWANCES SETUP: WORKED EXAMPLE
The requirement is to create an overtime allowance by which an overtime percentage of 110% is paid for regular days and 150% is paid
for rest days.
The following tasks need to be performed:
1. Create grade rates to store the percentages. Navigate to task Manage Grades in Workforce Structures work area.
2. Add a grade rate for each one of the percentages:
3. Associate these grade rates to range values. Navigate to the Calculation Value Definition task in the Payroll work area:

4. Associate the appropriate Grade Rate to the Range Value:
5. When an element entry is created for an Overtime Allowance element, the hours entered is multiplied by the hourly salary and
the appropriate overtime percentages defined in the previous steps is applied.

UNPAID LEAVE
Unpaid leave element is generated by selecting unpaid leave as secondary classification in the element template.
The unpaid element’s input value Days feeds the Leave Without Pay balance. The Leave Without Pay balance is used in Gratuity
calculation to get the unpaid or unauthorized absence.
This element also reduces the earnings, based on the amount calculated by the unpaid leave formula.
CREATING AN ALLOWANCE ELEMENT: WORKED EXAMPLE
This worked example describes how you can create an allowance element for Children Allowance.
1. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager:
2. Select Elements in the Setup and Maintenance or Payroll work area:

3. On the Elements page, click Create.
4. On the Create Element window, select the LDG and a primary classification, then click Continue:
5. Complete the fields at the top of the Create Element page, and then answer the questions:
6. Click Next, and complete the rest of the questionnaire:

7. Verify the information and click Submit to create the new element:
8. On the Element Summary page, provide additional information as needed, such as input values, processing rules, and
eligibility:

Use the Element Overview panel to navigate through the setup pages.
Note: Input values have been created for this element to receive information needed to calculate the value of the allowance.
Note: Element eligibility must be defined so that the element is linked to an element entry.
9. In the Element Overview panel, select Actions, and Create Element Eligibility.
10. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click Submit.
Note: If you enter only a name and no eligibility criteria, the element is eligible for all employees.
11. The Balance Feeds link shows the balances that are fed by this element. All the balance feeds (apart from
Impl_Doc_UAE_Children_Allowance that was generated by element rules) are generated automatically through the element
classification defaulting mechanisms (and the related balance feeds by classification).

12. The Related Formulas link shows the formulas connected to the elements that were automatically generated by the template.
13. Navigate to Fast Formulas link to verify if the newly created formula is compiled and if not, compile it.
VOLUNTARY DEDUCTIONS: LOANS
The Loan element for UAE is created for the primary classification Voluntary Deductions and the secondary classification Loan.
The following loan types are supported for UAE:
• Personal Loan
• House Construction Loan
• Housing Rent Loan
• Car Loan
Loan approval, processing and payments are outside the scope of payroll process. The payroll process only supports the loan recovery
process. Since the loan is interest free, there is no need for interest calculation.
The element that is created through the element template is the loan recovery element. Multiple loan recovery elements can be created
if the enterprise has several types of loans.
The input data that is needed to perform the loans calculation is entered though the input values at element entry level.

1. The input fields are generated by the element template when creating the element:
2. The element template also generates a set of balances used to store accumulated values needed to process the loan:
3. Loan recovery is triggered for an employee by adding an element entry for an element classified as loan:

The following points must be considered when entering data:
• Effective Start Date: Date on which the loan recovery will start.
• Effective End Date: End date of the element entry (if the element is recurring) indicating the last period when the loan must be
recovered.
• Period Type: Indicates the frequency with which the value entered in the amount field recurs. Typically it is either Calendar Month
or Annually.
• Amount: Indicates the amount to be recovered for the instance of the loan. If period type is Calendar Month, then the amount is
deducted monthly. If period type is Annually, then the monthly deduction equals Amount divided by 12. If a loan is suspended for a
period, then an instance with monthly frequency amount of 0 is created.
Gratuity Payment Element

The UAE localization has predefined the Gratuity Payment element that is used to process gratuity payments. This element is
automatically calculated in payroll whenever the End of Service calculation card is automatically generated by the termination process.
This element is feeding the gross pay and net pay balances:

Salary Basis and Additional Allowance Elements
In addition to the previously described allowances that are created using UAE specific templates, other earnings such as salary basis
and compensation elements can be created using global templates.
The following steps show how to create a regular earnings element for basic salary:
1. Follow steps 1-3 used in the worked example for allowance creation.
2. On the Create Element window, select the LDG and a primary classification. Click Continue:
3. Complete the fields at the top of the Create Element page, and then answer the questions:

4. Click Next, and complete the rest of the questionnaire:
5. Verify the information and click Submit to create the new element:

6. On the Element Summary page, provide additional information as needed, such as input values, processing rules, and
eligibility:
Use the Element Overview panel to navigate through the setup pages.
7. Repeat this entire process to create a set of elements to support your business needs. For example, you might create another
element (Impl_Doc_UAE_Additional_Allowance) for an additional allowance.
Auto Indirect Elements and Creation of Element Eligibility

Auto Indirect elements have been predefined by UAE localization to trigger Social Insurance and Gratuity Calculations once the related
person level cards have been assigned to the person. These elements are automatically assigned as element entry to the person:

This assignment is done without any action at the implementation level, but before assigning any person calculation card the
implementation team must create element eligibility for the Auto Indirect elements (i.e Social Insurance and Gratuity) as in this example:
This task is to be performed just once in the implementation process.
Note: Don’t select the Automatic entry check box.
Proration and Retroactivity

In scenarios where an employee has a mid-period change, for example, changing the basic salary during a month, a set of elements
must 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 element template you must 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 affect
the 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:
Employment days in the period or Calendar days in the period
To meet different business requirements, implementation teams 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.

2. Navigate to the Event Groups task in the Payroll work area.
3. Select Entry Changes for Proration
4. View the changes that trigger proration.
No specific event group is predefined for the UAE localization. Additional event groups can be added in the implementation phase.
RETROACTIVITY
Retro Earnings
When creating an element through the element template you must consider if the element must be retroactively processed for mid-
period 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, mid-period 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 mid-period changes may now potentially affect the
calculated value of the element.
Events that trigger the retro calculation are identified through the selected retro group.
2. Navigate to the Event Groups task in the Payroll work area.
3. Select Entry Changes for Retro.
4. View the changes that trigger retro.

No specific event group is predefined for the UAE localization. Additional event groups can be added in the implementation phase.
UAE Specific Retro

For calculating Social Insurance Retro, we have created the following 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
For calculating Gratuity retro, we have created the following retrospective element:
• 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.
INVOLUNTARY DEDUCTIONS: COURT ORDERS

You must create the Court Order elements as Involuntary Deductions and select the secondary classification as Court Order using the
seeded element template. You can create each type of Court Order as an element. Depending on the type of Court Order issued to the
employee by the courts, corresponding Court Order element must be attached to that employee.
COURT ORDER ELEMENT
1. Sign in using a role that has privileges to manage payroll information.
2. In the My Client Groups section, click Show More.

3. Navigate to the Elements task from the Payroll work area.
4. Select Create Element.

5. Select the LDG, Primary classification as Involuntary Deductions, and Secondary Classification as Court Order.
Note: Category is automatically set to Involuntary Deduction.
6. Answer the following set of questions pertaining to the element type based on your organization’s business rules that apply to
deduction of Court Orders.
7. Click Next
8. Review the information and Click Submit.
ELEMENT ELIGIBILITY: COURT ORDERS
The Court Orders element is predefined for UAE localization to trigger court order calculations. Element eligibility must be created for the Court
Orders element to add the court order card to employee.
1. Select the Elements task from the Payroll work area.
2. Search for and select the Court Orders element.
3. Select Element Eligibility.
4. Click on the Action tab.
5. Select Create Element Eligibility.

6. Enter a unique name for the Eligibility record.
7. Click Submit.
COURT ORDERS CALCULATION CARD
After you have created the court order elements and the eligibility for Court Orders element, they become available to be allocated to
the employees as required.
The Court Orders card must be created manually. Follow these steps to create the card:
1. Navigate to Payroll work area.
2. Select the person for whom you want to create the calculation card through Manage Calculation Cards.
3. Select Create and Click the name as Court Orders.
4. Click Continue.

Note: In the calculation card, the seeded parent component Court Order Details is created automatically.
5. Click Add to create a new calculation component.
6. Select the required component.
7. Select Parent Calculation Component as Court Order Details.
8. Enter the Reference Code as provided by the issuing authority.
9. Click OK.
Note: The Calculation Component Details are automatically created.
10. Enter all the required information in the component details section.

Amount: Court order amount to be deducted periodically from the employee.
Total Owed: Total amount due to be collected from the employee.
Frequency: Indicates frequency of deduction.
Partial Deduction Rule: Court order deductions are processed based on the following rules when there are insufficient funds to cover
the deduction:
• Do not take a partial deduction or create arrears
• Do not take partial deduction, place all in arrears
• Take a partial deduction, but do not create arrears
• Take a partial deduction, place remaining in arrears
Date of Issue: Order issued date.
Note: Court order is processed in payroll based on the Date of Issue.
Date of Receipt: Order received date.
Note: Date of Receipt must be on or after the Date of Issue.
Payment Issuing Authority: Authority who requested the court order deduction.
Order Amount Payee Details: Third party person or organization that will receive the deduction. See Third-Party Organization or
Person section.
Note: You must set up the third party for all court orders before creating the court order calculation component.
11. Click Save and Close.
THIRD-PARTY ORGANIZATION OR PERSON

Deductions from the employees can be paid to third parties, that is, a court, an external organization, or an individual directly.
THIRD-PARTY ORGANIZATION
To create a third-party organization:

1. Select the Third Parties task from the Payroll work area:
2. Click Create to create a new third party.

3. Select the Organization Party Type.
4. Select External Payee as Party Usage Code.
5. Click Continue.
6. Enter the name of the third party.
7. Click Add in the Addresses region to add a new address.
8. Click Add in the Contacts region to add a new contact.
9. Click Submit.
10. Select the legislative data group to create Payment method to the third party.
11. Click Yes.

12. Select Organization Payment Method.
Note: The Organization Payment Method being selected must be added in Valid Payment Methods of Payroll Definition.
13. Click Add to create a bank account.
Note: The Bank Accounts region is displayed when the organization payment method is EFT.
Note: The third-party organization created for social insurance contributions must have the bank account number as ‘008510’ and the
IBAN number can be a dummy value.
14. Click Submit.
THIRD-PARTY PERSON
To create a third-party person:
1. Select the Third Parties task from the Payroll work area:
2. Click Create to create a new third party.
3. Select the Person Party Type.

4. Click Continue.
5. Enter the name of the person.
6. Click Add in the Addresses region to add a new address.
7. Click Add in the Contacts region to add a new contact.
8. Click Submit.
9. Select the legislative data group to create Payment method to the third party.
10. Click Yes.
11. Select Organization Payment Method.
Note: The Organization Payment Method being selected must be added in Valid Payment Methods of Payroll Definition.

12. Select the Person in the Payroll Relationships region for whom you want to associate this third party.
13. Click Add to create a bank account.
Note: The Bank Accounts region is displayed when the organization payment method is EFT.
14. Click Submit.
BALANCES
Payroll balances show the accumulation of values over a period of time. The values can be currency, hours, or any other numeric
value. Most of the required balances are predefined and additional balances are created automatically when creating elements.
Implementation teams can edit the definition of these generated balances, or create additional balances for calculations or reporting.
When a balance definition (balance type) is created, balance category and a unit of measure can be selected. Each balance definition
is grouped in a predefined balance category for quicker processing. Balance categories are legislation-specific and cannot be modified.
Each balance can have multiple dimensions, which define the specific value to be retrieved. Balance dimensions are predefined and
typically combine these components:
• Time span, such as run, period to date, or fiscal year to date
• Employment relationship level, either assignment, terms, or payroll relationship
• Context, required for some balances only, such as tax reporting unit (TRU), element, or payroll
When a specific balance dimension is linked to a balance type, this results in creating a defined balance.
The value assigned to a balance during processing is determined by balance feeds defined for the balance.
Balance feeds can be by element input values or by balance classification run results.
• Balance Feeds by Element: Indicates one or more element input values to add or subtract from a balance. If a balance is fed by a
single element, it is called a primary balance.
• Balance Feeds by Classification: Indicates that all elements belonging to a specific classification will feed that balance. Any type of
classification can be used to feed the balance but it is to be remarked that if a primary classification is added as a balance feed, the
children of this classification from the secondary or subclassifications cannot be added. Also, you cannot use both secondary
classifications and subclassifications in the same balance feed.
Balances are important for reporting because in most of the reports balances represent the values that are displayed in the output.
Balances can be aggregated (through balance attributes) in balance groups and balance groups are the entities that are used by payroll
reports to identify the balances to be included in specific sections of the report.

A set of balance definitions are provided by global payroll, but localizations have a predefined set of definitions in addition to global
data.
UAE localization has predefined data related to the following balance definitions:
• Balance Categories (enabling of global categories)
• Balance Types
• Balance Dimensions and Usages (enabling of global dimensions)
• Defined Balances
• Balance Groups and Attributes
Balances Definitions predefined for UAE

This section describes the predefined balance definitions for the UAE localization and related tasks at implementation level.
A detailed list of balances definitions predefined for UAE can be found in the UAE balances spreadsheet
Oracle_Fusion_HRMS_UAE_Payroll_Balances.xlsx on My Oracle Support (MOS).
BALANCE CATEGORIES
The following global categories are enabled for UAE:
• Absences
• Earnings
• Employer Charges
• Information
• Miscellaneous
• Social Insurance Deductions
• Direct Payments
• Pre-Statutory Deductions
• Total Earnings
Note: When creating a new balance in implementation phase, it must be associated to one of the predefined categories and categories
cannot be added or modified in implementation phase.
BALANCE TYPES
Balance types predefined by UAE localization are listed in the UAE Balances Spreadsheet:
In this section describes the balances that affect payroll calculation and that are likely to be fed by elements created in the
implementation phase.
A separate section is dedicated to the net pay balance due to its impact on the payment process.

Gross
Balance Gross Earnings collects all the gross earnings applicable for UAE and is fed by 2 primary classifications:
• Supplemental Earnings
All elements created at the implementation level with these primary classifications feed this balance.
Unpaid Leave
Balance Subject to Unpaid Leave: Collects all the earnings that are not due to be paid when an employee is on unpaid leave. This
balance is fed by subclassification Subject to Unpaid Leave.
This subclassification is associated by default to earnings with primary classification Standard Earnings and Information and so all
elements created in the implement phase with these primary classifications will feed this balance.
Balance Leave Without Pay: Used to track the unpaid absences that are used in Gratuity Calculation.
Social Insurance
Balance Subject to Social Insurance: Collects all the earnings that are liable to Social Insurance and fed by subclassification Subject
to Social Insurance.
This subclassification is associated by default to earnings with primary classification Standard Earnings and Information and so all
elements created in the implement phase with these primary classifications feeds this balance.
The value of this balance is used as contributory salary if the same is not overridden.
Balance Contributory Salary is used as base in the contributions calculations. Subject to Social Insurance is designed to store the
earnings that make up the contributory base, but for private sector the base can be overridden or adjusted so, eventually, if there is no
override or adjustment balance, contributory salary balance is equal to balance Subject to Social Insurance, otherwise it will account for
the override or adjustment.
Net Pay Balance

During the payment process, the net pay balance is used to store the amount to be transferred as remuneration for the payee. A net
pay balance, named Net Pay, is predefined for UAE, and no additional setup is required during the implementation phase.
To view the Total Pay balance:
1. Select Balance Definitions in the Payroll or Setup and Maintenance work areas.

2. Enter Net Pay in the Name field and select a UAE LDG, then click Search:
3. Click the Net Pay balance in the Search Results to view the balance information:
4. Click Balance Dimensions in the left panel to display the dimensions associated with this balance:

Note: The Relationship Payments balance dimension is associated with this balance.
5. Click Balance Feeds in the left panel to display the classification that feed this balance:
Note: all elements created in the implementation phase with these primary classifications feed this balance.
BALANCE DIMENSIONS AND DEFINED BALANCES
Balance dimensions enabled by UAE localization are listed in the UAE Balances Spreadsheet

As per employment model, balances are maintained at all four levels, that is: Payroll Relationship, Payroll Terms, Payroll Assignment,
and Group levels.
The only dimensions that can be selected when creating a balance in the implement phase are dimensions enabled by UAE
localization.
Combining balance types and enabled dimensions UAE has delivered a set of defined balances that are listed in the UAE Balances
Spreadsheet Oracle_Fusion_HRMS_UAE_Payroll_Balances.xlsx on My Oracle Support (MOS).
BALANCE GROUPS AND ATTRIBUTES
Balance Groups group together balances. For the UAE, they are used mainly for reporting or online viewing purposes, to identify
balances that must be considered in specific sections. The way these balance groups are used in specific features, such as the SOE,
are detailed in the sections describing the features in detail.
The following balance groups are predefined for UAE:
• AE_PAY_ARCH_GROUP_BALANCES_GROUP
• AE_PAY_ARCH_REL_BALANCES_GROUP
These balance groups are used in the payslip, whereas all the other reports use global balance groups to which country specific
balances are connected.
The connection between defined balances and balance groups is managed through balance attributes.
Balance attributes can either be:
• Created automatically through a defaulting mechanism depending on balance category and dimension
• Predefined by localization
The AE Balances spreadsheet Oracle_Fusion_HRMS_UAE_Payroll_Balances.xlsx contains information on:
• Defaulting criteria
• Attributes predefined by UAE localization
When a balance that meets defaulting criteria is created in implement phase the related attribute is automatically associated to the
defined balance.
Defaulting criteria and attributed cannot be added or modified in the implementation phase.
Balance Groups can be restricted for a specific localization, so that only balances of certain dimensions or categories are associated
with a Balance Group. This is done through data that is predefined in the Pay Balance Usage Items table. Data predefined in this table
for UAE is shown in the AE Balances spreadsheet Oracle_Fusion_HRMS_UAE_Payroll_Balances.xlsx on My Oracle Support (MOS).
Balances and SOE

The online Statement of Earnings (SOE) is a feature within payroll that allows the end-user to view all the relevant information for an
individual employee payroll run or a prepayment in a single place so that the results can be easily viewed and verified.
This typically covers personal information, employment information, payroll information, absence information, run results, messages
and balances.
The SOE feature is part of global product and has been customized to meet country specific requirements.
Scope of this document is not to describe overall usage of the feature but to explain:

• Criteria that drives the inclusion of specific balances in certain sections (the ones that contain balances results) of the SOE
• Predefined data for the SOE for UAE localization
• How you can include user-defined balances in SOE
SOE SECTIONS AND RELATED BALANCES
Payroll results are displayed in the SOE in several sections:
The following paragraphs mention the sections populated by balance results and for each section the balance groups and related
attributed connected to the section are listed.
Note: UAE localization has not predefined any balance group or attribute for SOE, so the global balance groups are used.

Quick Reference Summary
This section is additionally split into four tabs of which, the following two contain data retrieved from balance results:
• Gross to Net: This tab includes results for balances (defined balances) connected to balance group:
GLB_SUMMARY_GROSS_TO_NET_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_GROSS_TO_NET_ATTRIBUTE
• Information: This tab includes results for defined balances connected to balance group:
GLB_SUMMARY_INFORMATION_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_INFORMATION_ATTRIBUTE
Earnings
This section includes results for defined balances connected to balance group: GLB_SOE_EARNINGS_BALANCE_GROUP that is
connected to attributes:
• GLB_EARNINGS_ATTRIBUTE
• GLB_SUPPLEMENTAL_EARNINGS_ATTRIBUTE
• GLB_TAXABLE_BENEFITS_ATTRIBUTE
Deductions
This section includes results for defined balances connected to balance group: GLB_DEDUCTIONS_BALANCE_GROUP that is
connected to attributes:
• GLB_PRE_STAT_DEDUCTIONS_ATTRIBUTE
• GLB_INVOLUNTARY_DEDUCTIONS_ATTRIBUTE
• GLB_VOLUNTARY_DEDUCTIONS_ATTRIBUTE
• GLB_TAX_DEDUCTIONS_ATTRIBUTE
• GLB_SOCIAL_INSURANCE_DEDUCTIONS_ATTRIBUTE

Information
This section includes results for defined balances connected to balance group: GLB_INFORMATION_BALANCE_GROUP that is
connected to attribute GLB_INFORMATION_ATTRIBUTE
Employer Contributions
This section includes results for defined balances connected to balance group:
GLB_SOE_EMPLOYER_CHARGES_BALANCE_GROUP that is connected to attributes:
• GLB_EMPLOYER_TAXES_ATTRIBUTE
• GLB_EMPLOYER_CHARGES_ATTRIBUTE
Direct Payments
This section includes results for defined balances connected to balance group: GLB_DIRECT_PAYMENTS_BALANCE_GROUP that is
connected to attribute GLB_DIRECT_PAYMENTS_ATTRIBUTE
Taxable Benefits
This section includes results for defined balances connected to balance group: GLB_TAXABLE_BENEFITS_BALANCE_GROUP that is
connected to attribute GLB_TAXABLE_BENEFITS_ATTRIBUTE
PREDEFINED SOE DATA FOR UAE
UAE localization uses the global Balance Groups for SOE and consequently the global attributes.
To display balances seeded by UAE localization in sections where attributes are not generated by default, predefined assignment of
attributes to a set of defined balances are delivered for UAE localization.
The complete list of UAE delivered associations between defined balances and attributes is contained in the UAE Balances
Spreadsheet Oracle_Fusion_HRMS_UAE_Payroll_Balances.xlsx on My Oracle Support (MOS).
For UAE, the following connections are defined between balances and sections of SOE report.
Gross to Net Summary Section

• Earnings
• Employee Social Insurance
• Net Pay
• Social Insurance
Information Summary Section

• Contributory Salary
• Leave Without Pay
Information Section
• Employee Social Insurance Adjustment
• Employee Social Insurance Arrears
• Employer Social Insurance Adjustment

Attributes cannot be created or modified in the implementation phase.
USER-DEFINED BALANCES AND SOE
When you need to create a defined balance with a specific balance category that is mapped in the balance attributes defaulting setup,
then an attribute is associated to the defined balance. This occurs also for balances created via template. If that attribute is connected
to a balance group that is displayed in a section of SOE, then also the balance you defined is viewable in SOE.
PAYROLL SETUP
Before processing payroll or post payroll processes a set of base tasks must be performed by the implementation team to define basic
structures such as:
• Banks and Bank Accounts
• Organization Payment Methods
• Consolidation Groups
• Payroll Definitions
• Salary Basis
• Compensation Elements
Payments Setup
To process payments, a payment method must be assigned to a payee. Setup of banks and branches must be done before entering
bank accounts and payment methods for the payee.
No banks or branches are predefined for UAE. Banks and branches must be defined during implementation. This can be done
manually, by entering the banks and branches in the application, or it can be done in a mass upload process.
BANKS
To define banks:
1. Sign in to the application with a role that has implementation privileges, such as APPL_IMP_CONSULTANT.
2. Select Manage Banks in the implementation project task list:
3. Click Create.
4. On the Create Bank page, provide the required information:

BANK BRANCHES
To define branches for the banks you created:
1. Select Manage Bank Branches in the implementation project task list:
2. Click Create.
3. On the Create Bank Branch page, provide the required information:
BANK ACCOUNTS
Once banks and branches are set up, you can define the bank accounts for the organization. Normally, implementation teams set up
bank accounts that are used at an organizational level, such as the source bank accounts for payments, rather than bank accounts at
the individual payee level.
To define bank accounts:
1. Select Manage Bank Accounts in the implementation project task list:

2. Click Create.
3. On the Create Bank Branch page, provide the required information:
Note: If you want to use this bank account for processing payments related to payroll, select the Payroll option in the Account Use
field.
Note: The only Legal Entities that can be selected are the ones that have been assigned to a Primary Ledger. Assignment can be done
in task Assign Legal Entities:

ORGANIZATION PAYMENT METHODS
After setting up banks, you can define the payment methods that can be used within the organization itself.
No organization payment methods are predefined for UAE. Implementation teams will need to create the ones applicable to the
enterprise.
To define organization payment methods:
1. Select Organization Payment Methods in the implementation project task list:
2. Click Create.
3. Select the LDG associated with this payment method:
On the Create Organization Payment Method page, enter the required information:

In the process of creating an organization payment method, a payment source needs to be created:
Note: UAE supports the following Payment Types: Cash, Cheque, and Electronic Funds Transfer (EFT).
Consolidation Groups and Payroll Definitions

Consolidation groups and payroll definitions must be set up before running a payroll.
CONSOLIDATION GROUPS
Consolidation groups are used within the organization to enable grouping of different payrolls for reporting purposes. No consolidation
groups are predefined for UAE. If you are creating payroll definitions for the implementation, you must define at least one consolidation
group first, since it is mandatory information for payroll definitions.
To set up consolidation groups:
2. Select Consolidation Groups in the implementation project task list:

3. On the Consolidation Groups page, click Add Row:
4. Enter a name and select the LDG. Description is optional, but useful to provide.
5. Click Save.
Payroll Definitions
Payroll definitions contain calendar and offset information that determine when payments are calculated and paid. Using payroll
definitions, you can specify payment frequency, processing schedule, and other parameters for a particular payroll. Payroll period
types, such as weekly or monthly, determine the interval at which you pay employees. UAE employees are typically paid monthly.
Each payroll definition can be associated with only one payroll period type, and you must set up at least one payroll definition for each
payroll period type that you use to pay employees. When you create a payroll definition, the complete payroll schedule is automatically
generated, based on the selected payroll period type, any offsets or calendar adjustments, and the number of years that you specify.
Once you have saved a payroll definition, you can assign employees to it on the Manage Payroll Relationships page from Person
Management work area.
Before you can create a payroll definition, you must have already defined the LDG and consolidation group.
No payroll definitions are predefined for UAE.
To set up payroll definitions:
1. Select Payroll Definitions in the implementation project task list:

2. Click Create.
3. Select the LDG for this payroll definition, and click Continue:
4. On the Create Payroll page, enter the required information:
Note the following:
• UAE supports the following period types: Monthly Calendar and Biweekly.
• Only the payroll interface license customer can use Biweekly period type.
• If a user with payroll license selects Biweekly as Period Type, the user will not be allowed to create the payroll definition.
• You must select an existing consolidation group.
• A Default Payment Method must be selected in order to be able to run the prepayment process.

• Click Add Row in the Valid Payment Methods section to add an organization payment method to use as the default, plus any
additional payment methods that are valid for this payroll. You can select any organization payment method defined for the LDG
that is linked to this payroll definition.
5. Click Next, and provide the required information on the Payroll Offsets page:
• Number of Years: number of years for which payroll calendars are created starting from the Effective As-of-Date
• Offset Details: used to determine the key dates within the monthly payroll process.
Note: Date paid is used in the EFT file.
6. Click Next, and review the payroll calendars that have been generated:

Note: To modify any one of the defaulted dates, the payroll definition that has been created must be updated after it is saved:
7. Click Next, and then finalize the creation of the payroll definition by clicking Submit.

Salary Basis and Compensation
Once you have created the elements that are meant to hold the payee basic salary and compensation information, you can perform the
setup required to attribute the gross compensation to the payee.
SALARY BASIS
To set up the salary basis:
1. Sign in to the application with a role that has compensation administrator privileges, such as CMP_ADMIN_ALL.
2. Navigate to Compensation work area:
3. Select Salary Basis, and then click Create:
4. On the Create Salary Basis page, select the payment element to use for the salary basis and provide the required information:

Note: Selecting Amount as input value will enable the prorating of the amount by period frequency when payroll is run.
INDIVIDUAL COMPENSATION
To create a compensation plan, such as for a car allowance:
1. In the Compensation work area, select Individual Compensation Plans and click Create:
2. Select the payroll element for the compensation plan, such as a car allowance:

3. Select the Dates tab and set the payment start and end dates:
4. Select the Eligibility tab to define eligibility for the plan:
5. Select the Plan Access tab and indicate whether to restrict access to this plan:
6. Select the Instruction Text tab and add any instructions you want to associate with the plan.
Currency Conversion Rates

Currency conversion rates must be set up before running a payroll for GCC citizens.
CURRENCY CONVERSION RATES
To set up currency conversion rates:
2. Select Manage Daily Rates in the implementation project task list:

3. On the Manage Daily Rates page, navigate to the Daily Rates tab and click Create in Spreadsheet:
4. Once the Spreadsheet gets downloaded, it will prompt you to log on. Once you are logged on, enter the details as indicated
below. Click Submit and then click OK. The Record Status column will be updated with Row Inserted Successfully if the
records are loaded to the interface table.
To associate a currency rate type to an enterprise:
5. Select Manage Enterprise HCM Information in the implementation project task list:

6. Update the ‘Transaction Processing Conversion Rate Type’ field with the desired Currency Rate Type.
Note: Enterprise changes are effective as per the date set in the Effective Start Date field.
Note: Payroll Process will use the default conversion rate type Corporate if no conversion rate type is associated to Enterprise.
7. Click Done.
HIRING AN EMPLOYEE AND RUNNING PAYROLL FOR UAE: WORKED EXAMPLE

In this section we will go through the process of hiring a UAE employee and running a payroll for the same. More information on the hire
task for UAE can be found in Oracle_Fusion_HRMS_for_UAE-HR_Setup.
Hire an employee
To perform tasks related to person and employee management, you would typically sign- in to the application using a role connected to
a user, such as Human Resource Specialist:

The new hire process is the first task in the workforce lifecycle.
To hire an employee:
1. Select New Person from the Quick Actions menu:
2. Select the sections for which data is to be entered.

Note: Some sections such as Personal Details and Employment info are displayed mandatorily.

3. Enter the details in the applicable sections.
4. On the Person Details section, provide the required information:

5. On the Employment Details section, provide the required information:
Note: The employee is connected to the newly created Payroll Definition.
Fixed Terms Contracts

When hiring an employee with a fixed term contract you must enter the duration of the contract to be used in the gratuity calculation, if
gratuity is applicable.

Assign additional information
Now that the employee has been hired a set of data needs to be assigned to the employee in order to be processed and paid.
Basic information to be assigned is:
• Remuneration Information
• Calculation Cards
• Personal Payment Method
REMUNERATION
Remuneration to the employee can be assigned either through Salary Basis and Compensation (that will automatically generate
element entries, or directly create element entries.
In the example below, you enter remuneration using the setup for Salary Basis and Compensation.
Adding a Salary
1. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager (PAY_MGR_ALL).
2. Select Change Salary in the Person Management work area:

3. Click Propose New Salary, then complete the fields on the Add Salary window:
4. On the Manage Salary page, select the previously created Salary Basis and enter a Salary Amount, such as 2500 AED per
month:
Note: Selectable salary basis are limited to the ones defined for the LDG assigned to the payroll statutory unit connected to the legal
employer of the employee.
When you save this record, an element entry with the specified start and end dates is automatically generated. You can view the entry
on the Manage Elements Entries page:
Note: The salary basis has as annualized value of the compensation.

Adding Compensation
1. Select Individual Compensation in the Person Management work area:
2. On the Manage Compensation page, click Award Compensation:
3. On the Award Compensation window, select the previously created compensation plan and enter the compensation amount,
such as 500 AED as additional allowance:

When you save this record, an element entry with the specified start and end dates is automatically generated. You can view the entry
on the Element Entries page:
CALCULATION CARDS
For payroll to be processed for a UAE employee, the Employee Social Insurance Details card must be present. This card is
automatically generated upon hire process if the citizenship information is updated.
To view, edit and create calculation cards:
1. Select the Calculation Cards task in the Payroll work area:

2. Select the employee and verify that Employee Social Insurance or Pension Fund Details card is created:
3. Review the default values that have been assigned to the card and if needed edit the data:

Note: If the card was automatically created as part of the new hire process, the value for Citizenship field is derived from Person
Information. If the card is created manually, the citizenship is defaulted to United Arab Emirates. The default value for the Exception
Type field is blank. If no value is specified, then the employer and the employee each pay their contributions.
PERSONAL PAYMENT METHOD
Once banks and branches have been loaded in the system and a payroll definition has been assigned to the employee, you can add
payment methods to the employee record.
To assign personal payment methods:
1. Select the Personal Payment Methods task in the Payroll work area:

2. Search for and select the employee.
3. On the Manage Personal Payment Methods page, click Create:
4. On the Personal Payment Method page, select the Organization Payment Method for this employee:
Note: If the payment type is EFT or Internal Transfer, you must add a bank account and provide banking details

Note: An employee can have multiple payment methods. Use the Payment Amount Type and Percentage fields to manage
distribution across different payment methods.
Run Payroll and Review Results

Now that the basic information has been entered, it is possible to run payroll and review the related results. This section describes the
minimum data needed to run payroll, more detail on payroll process can be found in the core guides.
PAYROLL RUN
1. Select the Payroll task from the Navigator:

1. Select the Submit a Flow task in the Flow Submission and Results work area.
2. Select the LDG for which the payroll is to be calculated and flow pattern Calculate Payroll:

3. Enter the parameters to run the report:
• Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed. You can choose
any format to describe the payroll flow.
• Payroll: Payroll definition for which payroll is being run.
• Payroll Period: Period for which payroll is calculated. For UAE, the period is always monthly.
• Run type: Optionally, the report can be run for a specific establishment.
Specify the flow interaction range and schedule the process date and time if required. Review the details before you submit the
process.
4. Click Submit.
Verify the process completion and view the generated report.

Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.

REVIEW PAYROLL RESULTS
You can review the payroll results once the process is completed successfully:
Payroll results can be reviewed for the person:
1. Select the Process Results Summary task in the Payroll work area.
2. Filter the results using the appropriate parameters such as for example the Payroll Name (Payroll Definition):
3. Select the desired row and review the results using SOE:

Note:
• The income subject to social insurance is made up of the two earnings that were assigned to the employee through the
remuneration definition.
• Deductions are driven by the social insurance calculation cards. Note that when exception type Employee pays both contributions
was selected, both the employee and employer contributions are discounted from Net Pay.
Government Sector Employees

To run the Monthly Contributions - Government Sector report, an employee belonging to a government sector legal employer must be
hired.
The legal employer must have the Government Sector selected in the legal entity calculation card for the social insurance details
component:

Additionally in order to generate cheque payments, a cheque type payment method must be associated the employee:
This employee is assigned the following payroll definition:
MANDATORY POST-PAYROLL PROCESSES

Once payroll has been executed a set of mandatory intermediate post payroll processes need to be run:
• Calculate Prepayments
• Archive Periodic Payroll Results
These are needed as prerequisites to run the set of post payroll processes such as payments, payslip
and regulatory reporting.
Calculate Prepayments
Calculate Prepayments is the process in which the amount paid to the employees is split based on personal payment methods. If
there is no personal payment method, then the process will use the Organization payment method.
To run the calculate prepayments process:

2. Select the LDG for which the process is being run and the flow pattern Calculate Prepayments:
• Payroll: Payroll definition for which payroll is to be run.
• Process Start Date: Start date of the process for which the prepayment is run.
• Process End Date: Start date of the process for which the prepayment is run.
process.
4. Click Submit.


6. Filter the results using appropriate parameters such as flow name.
7. Review the results at the person level:

Archive Periodic Payroll Results
This is the process in which employee and Organization data gets archived. This data will be used in statutory reports or user created
reports.
To run the calculate prepayments process:
2. Select the LDG for which the process is to be run and flow pattern Archive Periodic Payroll Results:

3. Enter the parameters to be used to run the report:
• Process End Date: End date of the process for which the prepayment is run.
process.
4. Click Submit.


6. Filter the results using appropriate parameters such as flow name.
7. Review the results at the person level:

PAYMENTS PROCESSING AND PAYSLIP
Once payroll has been executed a set of post-payroll processes need to be accomplished. Two basic post-payroll processes are:
• Payments processing
• Payslip
This section describes:
• What has been predefined by UAE localization to meet the UAE-specific business requirements.
• The process to generate the report outputs.
• A sample output of the reports.

Payments Processing
Global payroll provides a global process that generates .XML file containing data generated by payroll that is relevant for payments
processing.
The UAE localization has predefined an e-text template in Oracle Business Intelligence Publisher which generates an EFT file from the
XML. The EFT file has the structure prescribed for UAE.
To generate the EFT file, no setup is required in the implementation phase.
REPORT EXECUTION
2. Select the LDG for which the process is to be run and flow pattern Make EFT Payments:
3. Enter the parameters to be used to run the report:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed. You can choose any
format to describe the payroll flow.
• Organization Payment Method: Process the employees with the selected organization payment method.
process.

4. Click Submit.

5. View the results:
6. Select the generated file and view the output:
Note: Once payment process is executed for a person for a specific period, the person will not be selected if the process is rerun. To
rerun the payment for an already processed person, the whole execution needs to be rolled back.
GENERATE CHEQUE PAYMENTS
The global Generate Cheque Payments process generates an XML output. This XML output will contain the data that is to be printed on
the cheque template.

UAE localization has predefined a Rich Text Format (RTF) template in BIP that generates a printout from the XML. The Generate
Cheque Payments report has a predefined structure for UAE and consists of two sections:
The first section will contain the following information:
• Payroll Relationship Number
• Employee Name
• Cheque Date
• Cheque Number
• Net pay in numbers and letters.
The second section contains:
• Employee Name
• Employee Organization Name
• Job Title
• List of earnings elements and amounts
• List of deductions elements and amounts
• Total amount to be paid
Note: All earnings with classification Standard Earnings, Direct Earnings, Supplemental Earnings templates are displayed under
Earning region, and all the deductions with classifications Voluntary and Involuntary deductions are displayed under deductions region.
To generate the cheque payments, no set up is required in the implementation phase.
Report Execution
2. Select the LDG for which the process is to be run and flow pattern Generate Check Payments:

o Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can choose any format to describe the payroll flow.
o Payroll: Payroll definition for which payroll is being run.
o Process Start Date: Start date of the process for which the prepayment is run.
o Process End Date: Start date of the process for which the prepayment is run.
o Organization Payment Method: Process the employees with the selected Organization Payment Method OPM.
o Start Check Number: This is not applicable to the UAE. You can enter any value here.
process.
4. Click Submit.

5. View the results:

6. Select the generated file and view the output:

Payslip
You can generate a payslip for each payment made for an employee for a given pay period, after successfully completing the Event
Archive for Payroll and Generate Cheque Payments or Direct Deposit processes. Information such as Employee Details, Payroll
Information, Earnings, and Payment Methods are displayed in a payslip, as read-only.
Note: For payslip translation see the Administering Global Payroll Guide, Chapter 7 - Auditing and Reporting
The payslip consists of the following regions:
• Employee Details
• Payroll Information
• Summary of Payments
• Earnings
• Deductions
• Payment Information
PAYSLIP REGIONS
This section describes in detail the content of each region and what you can set up in the implementation phase.
Employee Details
This region displays personal details of the Employee.
This is predefined and the following details are displayed in this region:

• Employee Name
• Person Number
• Assignment Number
• Job
• Nationality
• Tax Reference
• Civil Identity Number
• Grade
• Contributory Salary
Payroll Process Information

This region displays the details of the payroll that has been processed for the employee.
• Period Type
• Period Start Date
• Period End Date
• Payment Date
• Base salary
Summary of Payments
This region displays the payment summary derived from the payroll run.
As by predefined setup set the following details are displayed in this region:
• Total Earnings
• Total Deductions
• Total Pay: net pay value - difference between the total earnings value and the total deductions.
Earnings
This region contains all the elements paid to the employee.
Elements having the following primary classifications are considered to be payments:
• Direct Payments
For any element, created at implementation phase, and having the above primary classifications (with value different from zero) are
included in this region.

Deductions
This region contains all the employee deductions.
Element having the following primary classifications are considered to be deductions:
• Pre- Social Insurance Deductions
• Social Insurance
For each element, whose calculation value is not zero, the amount and description are printed in the payslip.
Any element, created at implementation phase, and having the above primary classifications is included in this region.
Payment Information
This region contains details about the payment method and bank details for the employee to whom the payment has been made.
• Cheque / Deposit Number
• Bank Name
• Branch Name
• Account Number
• Currency
• Payment Amount
REPORT EXECUTION
1. Select the Submit a Process or Report task in the Payment Distribution work area.
2. Select LDG for which the process is to be run and flow pattern Generate Payslips:
3. Enter the parameters used to run the report:

process.
4. Click Submit.

5. Click View Results for each employee.

6. Click AE Printed Payslip.pdf.

Rollback Process
This is the process in which we can roll back the Calculate Payroll, Pre-Payment, Cheque Payment, EFT Payment, Payroll Archive,
Payslip, Statutory reports or User Created Reports.
ROLLBACK EXECUTION
2. Select LDG for which the process is to be run and the flow pattern Roll Back Process:

3. Enter the parameters used to run the report:
o Payroll Process: Identifier for the process being rolled back.
o Payroll Relationship Group: Optional. You can provide Payroll Relationship Group.
o Reason: Optional. You can provide the reason for the rollback.
process.
4. Click Submit.


Payroll Cycle Flow
Payroll cycle flow consists of payroll tasks in a pre-defined sequence for each payroll period.
The payroll flow has the following sequence:
1. Batch upload
2. Payroll Run
3. Prepayments
4. Archive Periodic Payroll Results
5. Make EFT Payments
6. Generate Check payments
7. Run Payroll Register Report
8. Generate Payslips
9. Verify Payslips
10. Run Payment Register Report
11. Verify Payments
FLOW EXECUTION
2. Select the LDG for which the process is to be run and the flow pattern Payroll Cycle:

3. Enter the following parameters to run the flow:
o Payroll Flow: Identifier for the process being run. You can enter a value each time the process is executed. You can
choose any format to describe the payroll flow.
o Payroll: Payroll definition for which the flow is being run.
o Payroll Period: Payroll period for which the payroll process is being run.
o Process End Date: End date of the process for which the prepayment is being run.
o Run type: Optional. The flow can be run for a specific establishment.
o EFT Organization Payment Method: Process by which the employees with the selected Organization Payment
Method OPM are paid through bank.
o Check Organization Payment Method: Process by which the employees with the selected Organization Payment
Method OPM are paid through cheque.
o Check Number: Required, if paying the employees through cheque.

Specify the flow interaction range and schedule the process date and time, if required. Review the details before you submit the
process.
4. Click Submit.
5. Verify the process completion and view the generated report.

Note: A message is displayed for you to verify the payroll flow.
MONTHLY REPORTS
A set of statutory reports are predefined in the application for the UAE localization:

• Form 1
• Form 6
• Form 7
• Monthly contributions - Private Sector
• Monthly contributions government sector
• Wage Protection System: Salary Information File
• IPE Consolidated Report
These statutory reports are executed after the payroll processing and submitted to the General Pension and Social Security Authority
(GPSSA).
This section of the document provides additional detail on these reports.
Form 1
Form 1 - New Hires is an on-demand statutory report, which an employer must submit to GPSSA upon hiring an employee.
This report contains the following blocks of information:
• Employer Information
• Employee Personal Information
• Employee Qualification Information
• Employee Disability Information
• Employee Compensation Information
This report can only be run for those PSU's whose Social Insurance Fund Type is GPSSA (General Pension and Social Security
Authority). Applicable for Release 10 and later.
The setup for retrieving the information is predefined.
You can find the content for the setup for this report in the section that contains employee compensation information. Elements that
contribute to each information block are defined by the element classification.
The mapping between fields in the report and element classifications or balances is documented in the UAE Reports Mapping.xls in My
Oracle Support.
Elements created during the implementation phase with classifications that are mapped to report fields, contribute to the values
reported in those fields.
REPORT EXECUTION
2. Select the LDG for which the process is to be run and flow pattern Run Form 1:

3. Enter the parameters to run the report
o Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
o Month: Month for which the report is run.
o Year: Year for which the report is run.
process.
4. Click Submit.


5. View the report results in Process Results Summary by searching with flow name.

Form 6
Form 6 - Insured Details is a statutory report that an employer must submit to GPSSA at the end of each month.
The report consists of information about the insured employees in the private sector.
Setup for retrieving this report is predefined.
contribute to each information block are defined by the element classification. The details of the mappings between fields in the
compensation section of the report and element classifications are documented in the UAE Reports Mapping.xls on My Oracle Support
(MOS).
Elements created at the implementation phase with classifications that are mapped to report fields will contribute to the values reported
in those fields.
REPORT EXECUTION
3. Enter parameters to run the report;

process.
4. Click Submit.


Form 7
Form 7 - Monthly Movements is a statutory report an employer needs to submit to GPSSA at the end of each month. It contains details
of newly hired employees, salary changes of existing employees, and terminated employees.
• Summary of contributions for the current month
• Salary Information: New Employees
• Terminated Employees
• Other changes: Employees with Salary Changes.

On each page, the report displays 5 hired employees, 4 salary changes and 4 terminated employees. Blank rows are displayed if there
are no employees in a particular section.
Setup for retrieving this report is predefined.
contribute to each information block are defined by the element classification. The details of the mappings between fields in the
compensation section of the report and element classifications are documented in the UAE Reports Mapping.xls on My Oracle Support
(MOS).
Elements created during implementation phase with classifications that are mapped to report fields contribute to the values reported in
those fields.
REPORT EXECUTION
1. Select the Submit a Submit a Flow task in the Flow Submission and Results work area.
3. Enter parameters to run the report:

process.
4. Click Submit.


Monthly Contributions – Private Sector
Monthly Contributions - Private Sector is a statutory report that an employer needs to submit to GPSSA at the end of each month. It
consists of information about monthly contributions of private sector employers and their employees that is paid to the Social Security
Office.
• Employee Identification Information
• Employee and Employer Contributions
Setup for retrieving the information is predefined.
The content that depends on set up in the implementation phase is the one related to the following sections:
Elements that contribute to each box of these sections are defined by either one of these 2 methods:
• Element Classification

• Elements feeding a specific balance
The mapping between fields in the report and element classifications or balances is documented in the UAE Reports Mapping.xls in
MOS.
Elements created at the implementation phase having classifications that are mapped to report fields, and feeding balances that are
mapped to report fields contribute to the values reported in those fields.
REPORT EXECUTION
1. Select the Submit a Submit a Flow task in the Flow Submission and Results work area.
2. Select the LDG for which the process is to be run and flow pattern Run Monthly Contributions – Private Sector:

process.
4. Click Submit.

5. View the report results in Process Results Summary by searching with flow name:

Monthly Contributions – Government Sector
Monthly Contributions - Government Sector is a statutory report that an employer needs to submit to GPSSA at the end of each month.
It contains detailed information about monthly contributions of government sector employers and their employees that are to be paid to
the Social Security Office.
• Employee Identification Information
The set up for retrieving the information is predefined.
The content that depends on the set-up of the implementation phase is related to the following sections:
Elements that contribute to each box of these sections are defined by either one of these 2 methods:
• Element Classification
• Elements feeding a specific balance
MOS.
Elements created at the implementation phases will contribute to the values reported in those fields:

• Having classifications that are mapped to report fields
• Feeding balances that are mapped to report fields
REPORT EXECUTION
2. Select the LDG for which the process is to be run and the flow pattern Run Monthly Contributions – Government Sector:
process.
4. Click Submit.


Wage Protection System: Salary Information File
Salary Information File is a statutory report that an employer needs to submit to a Wage Protection agent at the end of each month. The
report details information about the wages paid to individual employees.
• Employee Detail Record (EDR)
• Salary Control Record (SCR)
contribute to each information block are defined by the element classification.
MOS.
Elements created during the implementation phase with classifications that are mapped to report fields, contribute to the values
reported in those fields.
REPORT EXECUTION
2. Select the LDG for which the process is to be run and flow pattern Run Salary Information File:

o Business Unit: Business unit for which the report is run
o Employer Reference: Employer reference is a free text field of maximum of 35 characters.
Note: Business unit is not a mandatory parameter, if it is not provided report will be run for entire PSU.
process.
4. Click Submit.


5. View the Report results in Process Results Summary by searching with flow name:
Wage Protection System: Request For Refund

A refund may be required in case of errors in payroll processing or during salary transfer. This data is captured using the organization
information flexfield UAE Request for Refund. See the UAE HR Implementation Guide for details. The request for refund report is the
initiator for a refund request, and needs to be submitted to the wage protection agent.
This report contains the following information:
• Refund Details Record (FDR)
• Refund Control Record (FCR)
For information on setting up this report, see the section that contains Legal Entity HCM Information for Legal Employers and Payroll Statutory
Units information.

REPORT EXECUTION
2. Select the LDG for which the process is to be run and the flow pattern Run Request For Refund.
3. Enter the following parameters to run the report:
o Payroll Statutory Unit: Payroll Statutory Unit for which the report is being run.
o Salary Information File: Salary Information File name for which the refund process is being done.
process.
4. Click Submit.


Emirati IPE Consolidated Report
OVERVIEW
The Emirati IPE consolidated report is a monthly payroll report that is used across all Gulf Cooperation Council (GCC) countries by the
social insurance offices. The report consolidates information related to new hires and terminations in a calendar month.
PREREQUISITES
Ensure the following processes are run before you generate this report:
• Payroll Run

• Prepayments
• Payroll Archive
Following is the process flow:
Payroll Prepayment Run Payroll Run IPE Report

Run Archive
Emirati IPE Consolidated Report can be submitted multiple times for the same period. The report must produce the same output. The
report will get data from archive data of that period.
REPORT LAYOUT
Emirati IPE Consolidated Report has the following five sections:
• Section for Employee Information.
• Section for Employer Information.
• Section for hire salary details (Income and allowances).
• Section for termination salary and reason details.
• Footer section: You can enter data in this section on the printed report.
REPORT EXECUTION
2. Select LDG for which the process is to be run and flow pattern Run IPE Report.
3. Enter the parameters required to run the report.

o Payroll Statutory Unit: Payroll Statutory Unit for which the report is to be run.
o Month: The month for which the report is to be run.
o Year: The year for which the report is to be run.
process.
4. Click Submit.


ADRPBF New Hire Report
OVERVIEW
Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) New Hire Report is a statutory report that an employer needs to submit
to the Abu Dhabi Retirement Pensions and Benefits Fund. It contains detailed information about new hires in a calendar month who are
registered with ADRPBF.
PREREQUISITES
1. Payroll Run
2. Prepayment Run
3. Payroll Archive
Payroll Prepayment Run Payroll Run ADRPBF

Run Archive New Hire Report
If run multiple times, this report shows the same information based on the archived data for that period.

REPORT LAYOUT
ADRPBF New Hire Report has the following sections:
• Member's Demographic Details
• Current Employer Details
• Member's Employment Details
• Previous Employer Details
REPORT EXECUTION
2. Select the LDG for which the process is to be run and the flow pattern Run ADRPBF New Hire Report.
3. Enter the following parameters required to run the report:
o Payroll Statutory Unit: Payroll Statutory Unit for which the report is being.
o Month: The month for which the report is being.
o Year: The year for which the report is being.

process.
4. Click Submit.

ADRPBF Termination Report
OVERVIEW
Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) Termination Report is a statutory report that an employer needs to
submit to the Abu Dhabi Retirement Pensions and Benefits Fund. It contains detailed information about employees registered with
ADRPBF who have been terminated in a particular period.
PREREQUISITES

1. Payroll Run
2. Prepayment Run
3. Payroll Archive
Payroll Prepayment Run Payroll Run ADRPBF

Run Archive Termination
Report
If run multiple times, this report shows the same information based on the archived data for that period.
REPORT LAYOUT
ADRPBF Termination Report has the following sections:
• Member's Demographic Details
• Member's Employment Details
• Pensionable Salary Details
• Reason for Termination
• Employee and Employer Bank Details
REPORT EXECUTION
2. Select the LDG for which the process is to be run and the flow pattern Run ADRPBF Termination Report.
3. Enter the following parameters required to run the report:

o Payroll Statutory Unit: Payroll Statutory Unit for which the report is being run.
o Month: The month for which the report is being run.
o Year: The year for which the report is being run.
process.
4. Click Submit.


Payroll Validation Report
OVERVIEW
The Payroll Validation Report is a monthly payroll report that is used to validate if the mandatory statutory data is provided for all the
employees. The report will list the employees with missing or noncompliant statutory data.
Payroll Validation Report can be submitted multiple times for the same period. This report needs to be run before running the Salary
Information File report to check if the mandates for running Salary Information File are already present.
REPORT LAYOUT
Payroll Validation Report has the following sections:
• Section for Employer Information.
• Section for Employee Information.
REPORT EXECUTION
2. Select LDG for which the process is to be run and flow pattern Run Payroll Validation Report.

o Effective As-of-Date: Effective Date for the report.
o Payroll Statutory Unit: Payroll Statutory Unit for which the report is to be run.
process.
4. Click Submit.


Disabled Workers Report
OVERVIEW
Disabled Workers Report is a monthly report which contains information regarding an employee’s disability. The report is provided in
English.
PREREQUISITES
Ensure the following:
1. The required disability categories (and if required, the disability reason) are tagged with +AE.
2. The disabled person is an employee or contingent worker.
3. Disability data exists, which includes the following:
• The disability status is Active, Approved, Permanent, or Temporary.
• The registration date should exist and it should be less than the report effective date parameter.
• The expiration date is null or greater than the effective date.
REPORT LAYOUT
Disabled Workers Report has the following sections:
1. Section for Header.
2. Section for Parameters.
3. Section for Disabled Worker Information.
REPORT EXECUTION

2. Select LDG for which the process is to be run and flow pattern Run Disabled Workers Report.
o Legal Employer: Legal Employer for which the report is to be run. If left blank, all legal employers with legislation
code AE will be processed.
o Disability Category: Disability categories available for users. If left blank, all disability categories will be processed.
o Effective Date: Disability data active as on this date will be processed.
process.
4. Click Submit.


GLOBAL REPORTS
A set of global reports can be used to validate data included in UAE statutory reports. This section will contain additional information on
these reports.
Reports that can be used to validate data included in UAE statutory reports are:
1. Statutory Deductions Register
2. Payroll Register Report
3. Payment Register Report
4. Gross to Net Summary Report
5. Payroll Activity Report
6. Element Result Report
7. Payroll Balance Report
8. Third-Party Payment Register Report

Statutory Deductions Register
The Statutory Deduction Register lists the different deductions that localizations consider as statutory. It will display balances connected
to the following balance groups:
1. GLB_TAX_DEDUCTIONS_BALANCE_GROUP
2. GLB_INVOLUNTARY_DEDUCTIONS_BALANCE_GROUP
3. GLB_SOCIAL_INSURANCE_DEDUCTIONS_BALANCE_GROUP
The connection between balance groups and defined balances is explained in balance groups and attributes section of the document.
This report may be used, in conjunction with SOE, Balance Views and various payroll reports for diagnostic purposes, in order to verify
the amounts deducted and submitted for each PSU.
The Statutory Deduction Register provides the output in summary format where totals for each TRU are displayed with grand totals for
each PSU. It also provides information in a detail format where deductions are listed against each employee categorized by PSU, TRU
and element classification).
The Statutory Deduction Register shows the amount on both Period-to-Date and Year-to-Date basis.
It can be used to verify the Monthly Contribution report (both Private Sector and Government Sector), the total contributions as well as
the Contributory Salary on those reports must match those shown on the Statutory Deduction Register.
REPORT EXECUTION
2. Select the LDG for which the process is to be run and flow pattern Run Statutory Deductions Register:

o Payroll: Payroll definition for which payroll is to be run.
o Scope: Select either Summary or Detailed.
o Payroll Period: Select the payroll period you want to run the report for.
o Consolidation Group: Select the name of the consolidation group.
o Payroll Statutory Unit: Limits the output to a specific PSU.
o Tax Reporting Unit: Limits the output to a specific TRU.
o Balance Category: Limits the output to a specific Balance Category, for example Standard Earnings.
o Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
o Person: Limits the output to a selected person.
o Hide Records with Zero Value: Select Yes if you want to limit the report to the non-zero balances.
o Process Configuration Group: Select a Process Configuration Group if you want a log file generated for the report.
process.
4. Click Submit.



Payroll Register Report
The Payroll Register is post-archive report acting both as a verification tool and an audit trail. This report has a summary and detail
version. The summary report shows totals for hours, earnings, and deductions by payroll statutory unit and tax reporting unit, the detail
report shows complete payroll run details for each employee. The Payroll Register Report retrieves archived payroll results, so ensure
that run results have been archived before running this report.
This report replicates the information shown on the payslip: once payslips are generated and stored, a professional user can run the
Payroll Register Report to view payslip information for a group of employees.
The report shows Run and Year-to-Date balance dimension.
It will display balances connected to the following balance groups:
1. GLB_SUMMARY_GROSS_TO_NET_BALANCE_GROUP
2. GLB_GTN_EARNINGS (Balance Category: Hours)
3. GLB_GTN_EARNINGS (Balance Categories: Earnings and Supplemental Earnings)
4. GLB_GTN_DEDUCTIONS (Balance Categories: Involuntary Deductions, Voluntary Deductions, Tax Deductions, Social
Insurance Deductions, Pre-Statutory Deductions)
5. GLB_GTN_DIRECT_PAYMENTS (Balance Category: Direct Payments)
This report can be used to verify certain statutory reports such as Form 1, Form 2 and Monthly Contribution report (both Private Sector
and Government Sector).
REPORT EXECUTION
2. Select the LDG for which the process is to be run and flow pattern Run Payroll Register Report:

o Payroll Period: Select the payroll period you want to run the report for.

o Person Page Break: Select Yes if you want a Page Break after each Person’s report.
process.
4. Click Submit.


Payment Register Report
Run the Payment Register to verify and provide an audit trail of payments generated. This report is a post-archive report and has a
summary and detail version. The summary report shows total amounts paid by payment category, type, and method; the detail report
shows payments for each employee. It includes payments generated by all payment processes, including external payments. Run
Payment Register is an automatic task in the normal payroll cycle flow, occurring after payment generation, but can also be run as a
standalone process in the Payment Distribution work area. You can run this report before or after generating payslips.
On the Summary Report, each Payment Amount in the report must match the total paid through the corresponding payment method.
That is, total Cheque payment must match the total of the payments generated by Cheque, and Payment Amount for EFT must match
the Total on the EFT file.
On the detailed Report, Payment Amount must match the Net Pay on the payslip and the total must match the Payment Amount on the
Summary report.
REPORT EXECUTION
2. Select the LDG for which the process is to be run and flow pattern Run Payment Register Report:

o Payment Process: Allows selecting a specific payment process for which data must be extracted.
o Consolidation Group: Limits the output to a specific Consolidation Group.
o Payment Category: Limits the output to the selected Payment Category
o Payment Type: Limits the output to the selected Payment Type
o Payment Method: Limits the output to the selected Payment Method

process.
4. Click Submit.


Gross-to-Net Summary Report
The Gross-to-Net Summary Report provides the results of total payroll by earnings, deductions, and employer charges for a specified
period. The report is classified by TRU and has summary and details sections. The Gross-to-Net Summary Report has its own HCM
Extract definition. The report displays the details of balances associated with the following balance groups:
1. GLB_GTN_EARNINGS
2. GLB_GTN_DEDUCTIONS
3. GLB_GTN_DIRECT_PAYMENTS
4. GLB_GTN_EMPLOYER_CHARGES_GROUP_BALANCES
The connection between balance groups and defined balances is explained in balance groups and attributes section of the document.

This report may be used in conjunction with SOE, Balance Views, and various payroll reports for diagnostic purposes, in order to verify
the amounts deducted and submitted for each PSU.
REPORT EXECUTION
2. Select the LDG for which the process is to be run and flow pattern Run Gross-to-Net Report:

process.
4. Click Submit.


DETAIL REPORT

SUMMARY REPORT

Payroll Activity Report
The Payroll Activity Report shows the processing results for payroll runs, quick pays, reversals, and balance adjustments for a given
date range. This is an ad-hoc report which can be run at any time and which is not dependent on any other processes such as pre-
payments. This report can be used for payroll verification, validation, and auditing purposes.
There are two options when running the report - Summary and Detail. The Summary report shows the aggregated values for PSU and
TRU combinations while the Detail report shows the results within PSU and TRU combinations for individual employees. The Summary
version is restricted to payroll runs and shows the totals for all the people that were reported under that same payroll run in the Detail
version.
The report shows Relationship Run and Relationship Year-to-Date balance dimensions.
The Detail version will display balances connected to the following balance groups:
1. GLB_EMPLOYER_CHARGES_BALANCE_GROUP (Balance Category: Employer Charges)
2. GLB_PAYROLL_RELATIONSHIP_OTHER_DEDUCTIONS_BALANCE_GROUP
3. GLB_PAYROLL_RELATIONSHIP_PRE_TAX_DEDUCTIONS_BALANCE_GROUP (Balance Category: Pre-Statutory

Deductions)
4. GLB_PAYROLL_RELATIONSHIP_TAX_DEDUCTIONS_BALANCE_GROUP (Balance Category: Tax Deductions)
5. GLB_PAYROLL_RELATIONSHIP_EARNINGS_BALANCE_GROUP
6. GLB_HOURS_BALANCE_GROUP (Balance Category: Hours)
7. GLB_DIRECT_PAYMENTS_BALANCE_GROUP (Balance Category: Direct Payments)
8. GLB_PAYROLL_RELATIONSHIP_BALANCE_CLASSIFICATION_BALANCE_GROUP
REPORT EXECUTION
2. Select the LDG for which the process is to be run and the flow pattern Run Payroll Activity Report:

o Scope: Select either Summary or Detail.
o Payroll: Payroll definition for which the payroll is to be run.
o Process Start Date: Start date of the process for which the payroll is run.
o Process End Date: End date of the process for which the payroll is run.

o Process Type: Limits the output to a specific process.
o Location: Limits the output to a selected Location.
o Person Page Break: Select Yes if you want a page break after each Person’s report.
process.
4. Click Submit.


DETAIL REPORT

SUMMARY REPORT

Element Result Report
The Element Result Report usually runs every pay period and it gives the earnings/deduction amounts (i.e. Special Output Value) for
the selected elements. This report can be used in conjunction with Balance Views, SOE and Payroll Activity for diagnostic purposes.
This report can be sorted by Employee Full Name, Payroll Relationship, and Process Date.
If two reports are run on the same date, the reports will display data by Payroll Name in ascending order. The report is based on the
Run Results.
1. GLB_DEDUCTIONS_BALANCE_GROUP
3. GLB_SOE_EARNINGS_BALANCE_GROUP
4. GLB_EMPLOYER_CHARGES_BALANCE_GROUP
REPORT EXECUTION
2. Select the LDG for which the process is to be run and the flow pattern Run Element Result Report:

o Balance: Limits the output to a specific Balance.
o Location: Limits the output to a selected Location.
process.
4. Click Submit.



Payroll Balance Report
The Payroll Balance Report is a reconciliation report. This report extracts the run balance results for a specific period, which can be
used to check or verify the values of other reports. The report is driven by Payroll, PSU, TRU and Employee Name in the specified
order.
The report is meant to be run for a single employee. It is generally used when there is an issue with an employee and you need to see
the results for that single employee to help diagnose the problem. The report shows all the results for an employee.
The report shows Run balance dimensions.
1. GLB_DEDUCTIONS_BALANCE_GROUP
3. GLB_SOE_EARNINGS_BALANCE_GROUP
REPORT EXECUTION
2. Select the LDG for which the process is to be run and the flow pattern Run Payroll Balance Report:


o Location: Limits the output to a specific locations.
process.
4. Click Submit.


Third-Party Payment Register Report
The Third-Party Payment Register verifies and provides audit trails of third-party payments generated. It is a post-archive report and
has a summary and detail versions. The summary report shows total amounts paid by payment type, and method; the detail report
shows third-party payments for each employee. It includes third-party payments generated by all payment processes. Run Third-Party
Payment Register is an automatic task in the normal payroll cycle flow, occurring after payment generation, but can also be run as a
standalone process in the Payment Distribution work area. You can run this report before or after generating payslips.
REPORT EXECUTION
2. Select the LDG for which the process is to be run and flow pattern Run Third-Party Payment Register Report:

o Payroll: Limits the output to a specific Payroll.
o Consolidation Group: Limits the output to a specific Consolidation Group.
o Payment Process: Allows selecting a specific payment process for which data must be extracted.
o Payment Category: Limits the output to the selected Payment Category.
o Payment Type: Limits the output to the selected Payment Type.
o Payment Method: Limits the output to the selected Payment Method.
o Payee: Limits the output to the selected Payee.
process.
4. Click Submit.


Payroll Balance Exception Report
The Balance Exception report tracks values that vary for the same balance dimension. The variance indicates overpayments and
underpayments. Generate this report immediately after the Payroll process so that you can track the potential mistakes that are not
tracked as errors. This process is run immediately after the Payroll or QuickPay processing, or before generating the statutory reports,
such as quarterly or annual reports.
View to identify potentially incorrect payments or amounts withheld.
PROCESS FLOW
Pay Calculation Balance Exception Report
PREREQUISITES
You can generate a Balance Exception report, only after you create the balance exceptions
1. Create balance exceptions. Ensure that balances and balance dimensions exist before generating the report.
2. Create at least one Balance Exception Report before you run the payroll flow.
o Attach balance exceptions in the Balance Exceptions Report
CREATE BALANCE EXCEPTIONS
1. In the Payroll work area, select the Manage Balance Exceptions task.
2. In the Manage Balance Exceptions page, click Create.
3. Select LDG.
4. Click OK.
5. In the Create Balance Exception page, specify the value for the following parameters:
o Balance Exception Name
o Comparison Type
o Balance Name
o Dimension Name: After selecting the balance name, you can specify the dimension name.
o The Variance Type is Amount. Select the Variance Operator
o Specify Variance Value
o Set Severity Level.
6. Click Submit.

SETUP A BALANCE EXCEPTION REPORT
1. In the Payroll work area, select the Manage Balance Exceptions and Reports task.
2. In the Manage Balance Exceptions and Reports page, click Create.
3. In the Create Balance Exception and Report window, select the LDG.
4. Click OK.
5. In the Create Balance Exception Report page, specify parameter values for the following:
o Exception Report Name
o Consolidation Group
o Payroll
6. In the Include Balance Exception Report region, click Add to add a balance exception.
Note: The balance exceptions under the LDG are made available.
7. In the Add New Balance Exception window, click the Add icon to attach the Balance Exception Name that you defined in the
earlier task.
8. Click OK.
Note: To create a report, you must add at least one balance exception to the report. Verify the balance exceptions you have added.
GENERATING A BALANCE EXCEPTION REPORT
After creating the balance exception and setting up the Balance Exception report, you can run the process and generate the report.
Report Execution
2. Select the LDG for which the process is to be run and the flow pattern Run Balance Exception Report

3. Enter the parameters required to run the report:
o Balance Exception Report
o Payroll: Payroll definition for which the payroll is run.
o Process Configuration Group: Select a Process Configuration Group to generate a log file for the report.
4. Click Submit.


Deductions Report
Payroll deductions processed for a specific period are tracked in the Deductions Report. You can validate the processed deduction
amounts. The report tracks the employee information within the element classification and produces details on scheduled deductions
and arrears processing.
You can generate the report in two modes:
1. Summary Mode: Use it to verify the total amounts paid by payment category, payment type, status, and payment method.
Note: The reports don’t include payments made to third parties. Such payments are listed on another register.
2. Detail Mode: Use it to validate payments for each employee, including the payment amount, bank, and check information.
You can generate the report independently or as a part of the Payroll process.
PREREQUISITES
Ensure that payroll is run for the payroll period.
The following balance groups are added to the process:
1. GLB_DEDUCTIONS_BALANCE_GROUP: Used in Global Deductions for Deduction Report
2. GLB_MISCELLANEOUS_BALANCE_GROUP: Used in Global Miscellaneous for Deduction Report
REPORT EXECUTION
2. Select the LDG for which the process is to be run and the flow pattern Run Deduction Report:

3. Enter the parameters required to run the report:
o Payroll: Payroll definition for which the payroll is run.
o Deduction Category
o Deduction
o Location
o Process Configuration Group: Select a Process Configuration Group to generate a log file for the report.
4. Click Submit.



Note: The report is sorted by TRU and Department.
TERMINATION
There are no separate post termination processes for UAE. Terminated employees are not considered for social insurance processing
in the month of termination.
Earnings can be paid after termination. In this case, it is important to check the payroll status of the payee to be sure that it is included
in the payroll run. The possible HR statuses that can be enabled are:
1. Payroll Eligible - Payee is included in the payroll run.
2. No Payroll - Payee will not be included in the payroll run.
3. Process When One Time Element: Payee will only be included in the payroll run if that have a non-recurring (unprocessed)
element entry for the payroll period.
4. Process When Earning: Payee will only be included in the payroll run if they have an element entry, for the payroll period, for
an earning having classifications with Process When Earning flag set to Yes.
Users can check the Pay Status to determine if the assignment will be processed in the payroll after the termination based on the assignment
status.
Steps to check Pay Status

1. Go to Manage Assignment Status and click the link Go To Task.

2. Check the Pay Status based on the Assignment status after termination.
A statutory report (Form 2) needs to be submitted to the Social Insurance Office by the employer upon terminating an employee’s
service. The report is required by Social Insurance office within 30 days from the termination date of an employee.
In the termination month, gratuity payment is automatically generated, if the employee is eligible. This amount is added to the
employee’s net pay. Rules for determining the gratuity payment are described gratuity calculation section.
When a terminated employee is rehired, the employee is treated as a new employee. There is no linkage to the old records of the
employee. In effect, a rehire is treated as a new employee with a new payroll relationship.
Worked Example – Terminating an Employee

This section describes termination of an employee and its effect of calculation and reporting.
To terminate a work relationship:
1. Log in with an HR Specialist role (HR_SPEC_ALL).
2. Select Manage Work Relationship in the Person Management work area and select Terminate from the Actions menu.

3. On the Terminate Work Relationship page, enter the details of the termination, including the termination reason:

4. Review and Submit.
END OF SERVICE DETAILS CALCULATION CARD
For employees for whom the registered for social insurance check box is set to No, the action of termination the employee triggers the
automatic creation of an End of Service details calculation card only if the legal entity is marked as a payroll statutory unit, but if the
associated legal reporting unit has not been marked as a tax reporting unit, and an employee is terminated from that legal entity. The
termination process will not run to completion until a tax reporting unit exists.
The error message “You must mark the legal reporting unit associated to the legal employer as a tax reporting unit”
The card is created with the calculation component and component details and associations. You can review and edit the card, for
example, to enter an override amount for gratuity.

RUNNING PAYROLL
After verifying that the calculation card is created February 2010 (month when the employee is terminated), payroll can by be run for
Payroll Definition UAE Pay Doc and the following results are generated:
Note:
5. Gratuity payment is triggered in line with the amount entered as override.
6. Social insurance deductions are calculated to zero since we are in the month of termination.

Reverse or Correct Termination
No specific behavior is required for UAE in case of termination and rehire, as a result of which the default functionality of Core Pay and
Core HR will be sufficient.
Form 2
Form 2 - Terminations is a statutory report that an employer needs to submit to the Social Insurance Office, within 30 days, upon
terminating an employee’s service.
1. Employer Information
2. Employee Personal Information
3. Employee Termination Information
4. Employee Compensation Information
5. End of Service/Other Deductions
6. Employee Banking Details
Setup for retrieving the information is predefined.
The details of setup in the implementation phase are in the relevant sections containing:
7. Employee compensation information
8. End of Service or Other Deductions
Elements that contribute to each information block of these sections are defined by either one of these two methods:
9. Element Classification

10. Elements feeding a specific balance
MOS.
Elements created at the implementation phase:
11. Having classifications that are mapped to report fields
12. Feeding balances that are mapped to report fields
These elements contribute to the values reported in those fields.
REPORT EXECUTION
2. Select the LDG for which the process is to be run and flow pattern Run Form 2

process.
4. Click Submit.


CONCLUSION
This document focuses on information specific to implementing and using Oracle Fusion HCM in United Arab Emirates. To read more
about these tasks, refer to the documents listed in the Other Information Sources section.
GLOSSARY
General Terminology
consolidation group
A grouping of payroll runs within the same time period for which you can schedule reporting, costing, and post-run processing.
Calculation card
A mechanism for capturing values required for calculating payroll deductions at the level of a payroll statutory unit, tax reporting unit, or
payroll relationship. At the payroll relationship level, this is called a personal calculation card.
calculation component
An individual deduction captured on a calculation card. Typically relates to a deduction element for which the calculation component creates an
entry.
flexfield
Grouping of extensible data fields called segments, where each segment is an attribute added to an entity for capturing additional
information.
legal employer
A legal entity that employs people.
legal entity
An entity is identified and given rights and responsibilities under commercial law, through the registration with the country's appropriate
authority.
legislative data group

A means of partitioning payroll and related data. At least one legislative data group is required for each country where an enterprise
operates. Each legislative data group is associated with one or more payroll statutory units.
payroll statutory unit

A legal entity registered to report payroll tax and social insurance. A legal employer can also be a payroll statutory unit, but a payroll
statutory unit can represent multiple legal employers.

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Oracle Fusion HCM United Arab Emirates: Payroll Implementation and Functional Considerations
July 2022

Oracle Fusion HRMS For UAE Payroll SetupR13.22.07

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Oracle Fusion

JULY 12, 2022

2 Oracle Fusion HCM United Arab Emirates

What’s in this Document .............................................................................................................. 7

Other Information Sources .......................................................................................................... 8

Document Updates ...................................................................................................................... 8

Comments and Suggestions........................................................................................................ 9

Payroll Data ............................................................................................... 10

Person and Employment Payroll Data ........................................................................................10

Calculation Cards .......................................................................................................................12

Statutory Deductions and Gratuity Calculation .......................................... 27

Social Insurance Calculation ......................................................................................................28

Social Insurance Contributions when on Unpaid Leave or Sick Leave .......................................30

Social Insurance Calculation for GCC citizens ...........................................................................33

Gratuity Calculation ....................................................................................................................37

Monthly Gratuity Accrual ............................................................................................................40

Element Classifications ..............................................................................................................42

Elements: Allowances, Unpaid Leave and Loans .......................................................................49

Gratuity Payment Element ..........................................................................................................62

3 Oracle Fusion HCM United Arab Emirates

Auto Indirect Elements and Creation of Element Eligibility .........................................................65

Proration and Retroactivity .........................................................................................................66

Involuntary Deductions: Court Orders........................................................ 71

Third-Party Organization or Person ........................................................... 76

Balances Definitions predefined for UAE ....................................................................................82

Balances and SOE .....................................................................................................................86

Payroll Setup ............................................................................................. 90

Payments Setup .........................................................................................................................90

Consolidation Groups and Payroll Definitions.............................................................................94

Payroll Definitions .......................................................................................................................95

Salary Basis and Compensation.................................................................................................99

Currency Conversion Rates......................................................................................................101

Hire an employee .....................................................................................................................103

Assign additional information ....................................................................................................107

Run Payroll and Review Results ..............................................................................................114

Government Sector Employees ................................................................................................118

Mandatory Post-Payroll Processes .......................................................... 119

4 Oracle Fusion HCM United Arab Emirates

Archive Periodic Payroll Results ...............................................................................................122

Payments Processing and Payslip........................................................... 125

Payments Processing ...............................................................................................................126

Rollback Process ......................................................................................................................136

Payroll Cycle Flow ....................................................................................................................138

Monthly Reports....................................................................................... 140

Monthly Contributions – Private Sector ....................................................................................150

Monthly Contributions – Government Sector ............................................................................153

Wage Protection System: Salary Information File ....................................................................156

Wage Protection System: Request For Refund ........................................................................158

Emirati IPE Consolidated Report ..............................................................................................160

ADRPBF New Hire Report........................................................................................................163

ADRPBF Termination Report ...................................................................................................165

Payroll Validation Report ..........................................................................................................168

Disabled Workers Report .........................................................................................................170

5 Oracle Fusion HCM United Arab Emirates

Statutory Deductions Register ..................................................................................................173

Payroll Register Report ............................................................................................................176

Payment Register Report .........................................................................................................181

Gross-to-Net Summary Report .................................................................................................184

Payroll Activity Report ..............................................................................................................191

Element Result Report .............................................................................................................198

Payroll Balance Report .............................................................................................................201

Third-Party Payment Register Report .......................................................................................205