Standard Gratuity Calculation Formula Is Incorrect (Doc ID 2250252.1)

Last updated on APRIL 20, 2017

Applies to:

Oracle Fusion Global Payroll - Version 11.1.11.1.0 and later
Information in this document applies to any platform.

Symptoms

On : Rel 11 version

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

Tried to follow the standard formula and as Saudi labor low

"From the Saudi labor laws: Upon the end of the work relation, the employer shall pay the employee an end-of-service award of a half-month wage for each of the first five years and a one-month wage for each of the following years. The end-of-service award shall be calculated on the basis of the last wage and the employee shall be entitled to an end-of-service award for the portions of the year in proportion to the time spent on the job. If the work relation ends due to the employee's resignation and his service was less than two years, the employee shall not be entitled to the end of service award. The end-of-service award shall be calculated on the basis of the last wage and the employee shall be entitled to an end-of-service award for the portions of the year in proportion to the time spent on the job. First five years : half of a month wage for each year The years that followed: Full month wages for each year

Have a employee Hire date : 09/jun/2014 and termination date is 09/jun/2017 , so the employer shall pay half month for every years ( for example : his salary 8000 ) so the employer will pay 4000 for every years so 12000 for 3 years .

But the system will calculate only 4000 ?


EXPECTED BEHAVIOR
-----------------------
 6500 (Basic salary) + 1666.66 (Housing) / 2 * 3 (years of service).

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. have a employee Hire date : 09/jun/2014 and termination date is 09/jun/2017
2. the system is calculating only one half a salary for all 3 years of service

BUSINESS IMPACT
-----------------------
The issue has the following business impact
Calculation of Salaries giving wrong results.

Cause

Sign In with your My Oracle Support account

Don't have a My Oracle Support account? Click to get started

My Oracle Support provides customers with access to over a
Million Knowledge Articles and hundreds of Community platforms