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Fusion UAE Payroll : Social Insurance Or Pension Fund Not Prorated For Employees Terminated During the Pay Period Whose Contributory Salary Is Over or Under Thresholds (Doc ID 2866959.1)

Last updated on MAY 04, 2022

Applies to:

Oracle Fusion Global Payroll Cloud Service - Version 11.13.22.01.0 and later
Information in this document applies to any platform.

Symptoms

On : 11.13.21.07.0 version, AE - United Arab Emirates Legislation

ACTUAL BEHAVIOR
---------------

When the employee is terminated during the payroll period and the contributory salary falls below the lower threshold, the social insurance or pension fund is not calculating on a prorated basis.

It is calculated  at minimum salary that is currently AED 6,000 in 2022 as per Abu Dhabi Pension Fund website https://www.pension.gov.ae/en-us/Pages/PensionLaw.aspx

E.g. Employee terminated on 10th-Jun-2022
Salary - 5000
Working Days - 10 Days

SI Employee is 5% of 6000 = 300
SI Employer is 15% of 6000 = 900


EXPECTED BEHAVIOR
-----------------------
Social insurance should be calculated based on the prorated threshold for the contributory salary.
Prorating it for 10 days in the example above, the expected results are:

Employee terminated on 10th-Jun-2022
Salary - 5000
Working Days - 10 Days

SI Employee is 5% *6000 *10/30 = 100
SI Employer is 15% * 6000 *10/30 = 300



STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. Terminate employee during the pay period
2. Social insurance is calculated based on the minimum contributory salary, without proration

 

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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