Oracle fusion hrms_for_uae_payroll_setup_white_paper_rel11

An Oracle White Paper
March 2016
Oracle Fusion HRMS (United Arab Emirates):
Payroll Implementation and Functional
Considerations

Oracle Fusion HRMS (UAE): Payroll Implementation and Functional Considerations
Disclaimer
The following is intended to outline our general product direction. It is intended for information purposes only,
and may not be incorporated into any contract. 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 for Oracle’s products remains at the sole discretion
of Oracle.

Introduction.................................................................................................................................1
What’s in this Document..........................................................................................................1
Other Information Sources ......................................................................................................1
Document Updates .................................................................................................................2
Comments and Suggestions ...................................................................................................2
Payroll Data ................................................................................................................................3
Person and Employment Payroll Data.....................................................................................3
Calculation Cards....................................................................................................................5
Statutory Deductions and Gratuity Calculation ..........................................................................16
Social Insurance Calculation .................................................................................................16
Social Insurance Calculation for GCC citizens ......................................................................18
Gratuity Calculation...............................................................................................................20
Monthly Gratuity Accrual .......................................................................................................23
Elements...................................................................................................................................23
Element Classifications.........................................................................................................24
Element Templates ...............................................................................................................27
Elements: Allowances, Unpaid Leave and Loans..................................................................30
Gratuity Payment Element ....................................................................................................44
Salary Basis and Additional Allowance Elements..................................................................45
Auto Indirect Elements and Creation of Element Eligibility ....................................................47
Proration and Retroactivity....................................................................................................48
Balances...................................................................................................................................52
Balances Definitions predefined for UAE...............................................................................52
Balances and SOE................................................................................................................56
Payroll Set up............................................................................................................................59
Payments Setup....................................................................................................................60
Consolidation Groups and Payroll Definitions........................................................................64
Payroll Definitions .................................................................................................................65
Salary Basis and Compensation ...........................................................................................68
Currency Conversion Rates ..................................................................................................70
Hiring an Employee and Running Payroll for UAE: Worked Example........................................73
Hire an employee..................................................................................................................73
Assign additional information ................................................................................................76
Run Payroll and Review Results ...........................................................................................82
Government Sector Employees.............................................................................................85
Mandatory Post-Payroll Processes ...........................................................................................87
Calculate Prepayments.........................................................................................................87
Archive Periodic Payroll Results............................................................................................88
Payments Processing and Payslip ............................................................................................91
Payments Processing ...........................................................................................................91

Payslip ..................................................................................................................................96
Roll Back Process...............................................................................................................100
Monthly Reports......................................................................................................................102
Form 1 ................................................................................................................................102
Form 6 ................................................................................................................................106
Form 7 ................................................................................................................................108
Monthly Contributions – Private Sector ...............................................................................110
Monthly Contributions – Government Sector.......................................................................113
Wage Protection System: Salary Information File................................................................116
Emirati IPE Consolidated Report.........................................................................................117
Payroll Validation Report.....................................................................................................120
Disabled Workers Report ....................................................................................................121
Global Reports........................................................................................................................123
Statutory Deductions Register.............................................................................................123
Payroll Register Report .......................................................................................................127
Payment Register Report....................................................................................................130
Gross-to-Net Summary Report............................................................................................133
Payroll Activity Report.........................................................................................................137
Element Result Report ........................................................................................................144
Payroll Balance Report .......................................................................................................148
Payroll Balance Exception Report.......................................................................................152
Deductions Report ..............................................................................................................156
Termination.............................................................................................................................160
Worked Example – Terminating an Employee.....................................................................161
Reverse or Correct Termination ..........................................................................................164
Form 2 ................................................................................................................................164
Conclusion..............................................................................................................................168
Glossary..................................................................................................................................168
General Terminology...........................................................................................................168

1
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

2
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:
 Social Insurance Calculations
 Monthly Reports
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
Comments and Suggestions
Your comments are important to us. We encourage feedback about Oracle Fusion Applications Help and guides.
Please send your suggestions to: oracle_fusion_applications_help_ww_grp@oracle.com.
You may also use the Send Feedback to Oracle link in the footer of Oracle Fusion Applications Help.

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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 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 Standard.
 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 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.

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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 “Ministry of Labour 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
REL_INFORMATION1 ACCOMMODATION_PROVIDED HRC_YES_NO Accommodation Provided
REL_INFORMATION2 TRANSPORTATION_PROVIDED HRC_YES_NO Transportation Provided
REL_INFORMATION3 ORA_HRX_AE_MOL_EMPLOYEE_ID ORA_HRX_AE_NUM_14 Ministry of Labour Employee ID
REL_INFORMATION4 ORA_HRX_AE_WPS_ACCOUNT_NUMBER ORA_HRX_AE_NUM_16 WPS Account Number
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 the 3-tier employment model. If there is no
requirement to have multiple terms and multiple assignments, the 2 tier – single contract – single assignment
employment model can also be used.
The UAE has the following 2 contract types:
 Fixed Contract
 Unlimited Contract
The flexfield Employment Status is enabled to capture UAE specific contract details.

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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
CTR_INFORMATION1 EMPLOYMENT_STATUS HRX_AE_EMPLOYMENT_STATUS Employment 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 Details
 Employer Gratuity Details
At the person level, there are two predefined cards:
 Employee Social Insurance Details card
 End of Service Details card
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 Calculation Card
The employer social insurance details card uses the following information for social insurance calculation at the
legal entity level:
 Employer Sector: The employer sector can be either government 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 variable
CONTRIBUTORY_SALARY_REFERENCE. This is only used in the private sector. For additional
details on the calculation, refer to the section on social insurance calculation.

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 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 or General Pension and Social Security
Authority. 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:

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

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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 card.
2. Select the Employer Gratuity Details:
3. Enter required details in the Payroll Statutory Unit Gratuity Details:

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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 Payroll Calculations task from the Navigator:

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3. Navigate to Manage Calculation Cards task and select the person for whom you want to review the
calculation card:
4. Select the Employee Social Insurance Details Card from the given list. The Manage Calculation Cards page
appears:
Note: If no card exists, select Create and create the calculation card manually.
5. Enter details or edit the Employee Social Insurance Details:

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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.

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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.
6. 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

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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 applicable only for the private sector employees and 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 any time during
the year.
7. 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.

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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) 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.
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 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:

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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.
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.

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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 two types of calculations are:
General Pension and Social Security Authority (GPSSA)
Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF)
General Pension and Social Security Authority
Social insurance is applicable to all Emiratis 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%).

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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 or ceiling limit to the contribution salary.
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.
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 3000 AED
and monthly ceiling of 60000 AED are predefined.
 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.
For the government sector:

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 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 Subject to Social Insurance
balance.
 For Government Sector, the employee contribution is 5% and the employer contribution is 15%.
 There is no floor or ceiling limit to the contribution salary.
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.
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 task Manage Payroll Calculation Information in the Payroll Calculation work-area
3. Select SI Deduction and view the details
Legislative Repository for Calculation Information

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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 task Manage Payroll Calculation Information in the Payroll Calculation 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:

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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: must
 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:
o If termination initiator is employer, then the complete gratuity accrued is paid to the employee.
o 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

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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 task Manage Payroll Calculation Information in the Payroll Calculation 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 task Manage Payroll Calculation Information in the Payroll Calculation work area.

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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:

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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
Gratuity Accrual Initiator element. The application keeps a record of the total accrued amount and
the incremented accrued amount (periodic difference).
User has to manually attaché the Gratuity Accrual Initiator element to the person to whom they
want to calculate monthly gratuity accrual.
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 white paper.
 Entitlement :
o Fixed Contract: An employee is entitled to 21 days salary for the first 5 years and 30 days salary for
each additional year.
o 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.

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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 you
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.

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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:
o Will be part of the contributory salary
o 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

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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 earning these characteristics are described
more in 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 task Manage Element Classifications in the Payroll Calculation 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.

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4. Select a specific classification to vie 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 also when creating UAE elements.
When selecting Standard Earnings as primary classification:

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 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.

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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 Payroll Process Configuration Task using the Functional Setup Manager (FSM)
2. Navigate to Default Group Tab
3. If you have overridden the group, then the payroll license must be set for that group.
4. Select Payroll License to decide Payroll License parameter name and edit it. Change the appropriate
license value.
You can enter following values:
HR_ONLY – This must be set when customer is having an HR only license.

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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
5. Navigate to Manage Default Process Configuration Group Profile Option Values Task in the FSM:
6. Set the appropriate configuration group in the profile option value field:
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

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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 task Manage Calculation Value Definitions in the Payroll Calculation 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

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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.
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.

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 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.
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:

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 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

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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.

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2) Add a grade rate for each one of the percentages:
3) Associate these grade rates to range values. Navigate to the task Manage Calculation Value Definition
Details in the Payroll Calculation work area:

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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.

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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.
6. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager:
7. Select Manage Elements in the Setup and Maintenance or Payroll Calculations work area:
8. On the Manage Elements page, click Create.
9. On the Create Element window, select the LDG and a primary classification, then click Continue:

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10. Complete the fields at the top of the Create Element page, and then answer the questions:
11. Click Next, and complete the rest of the questionnaire:
12. Verify the information and click Submit to create the new element:

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13. 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.
14. In the Element Overview panel, select Actions, and Create Element Eligibility.
15. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click Submit.

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Note: If you enter only a name and no eligibility criteria, the element is eligible for all employees.
16. 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).
17. The Related Formulas link shows the formulas connected to the elements that were automatically generated
by the template.

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18. Navigate to Manage 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.

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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:

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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:

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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:

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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:

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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:

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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.

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 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 task Manage Event Groups in the Payroll Calculation work area.
3. Select Entry Changes for Proration
4. View the changes that trigger proration.

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No specific event group is predefined for the UAE localization. Additional event groups can be added in the
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 task Manage Event Groups in the Payroll Calculation work area.

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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
UAE Specific Retro
For calculating Social Insurance Retro, we have created the following retrospective elements.
 Contributory Salary Retro
 Employee Social Insurance Retro
 Employee Social Insurance Adjustment Retro
 Employee Social Insurance Arrears Retro
 Employer Social Insurance Retro
 Employer Social Insurance Adjustment 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.

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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).

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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.

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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 Manage Balance Definitions in the Payroll Calculations 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:
Note: The Use for Remuneration field must be set to Yes.
4. Click Balance Dimensions in the left panel to display the dimensions associated with this balance:

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Note: The Core Relationship Payments 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

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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
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:

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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

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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
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
GLB_INFORMATION_BALANCE_GROUP that is connected to attribute
GLB_INFORMATION_ATTRIBUTE
Employer Contributions
GLB_SOE_EMPLOYER_CHARGES_BALANCE_GROUP that is connected to attributes:
 GLB_EMPLOYER_TAXES_ATTRIBUTE
 GLB_EMPLOYER_CHARGES_ATTRIBUTE
Direct Payments
GLB_DIRECT_PAYMENTS_BALANCE_GROUP that is connected to attribute
GLB_DIRECT_PAYMENTS_ATTRIBUTE
Taxable Benefits
GLB_TAXABLE_BENEFITS_BALANCE_GROUP that is connected to attribute
GLB_TAXABLE_BENEFITS_ATTRIBUTE

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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 Set up
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

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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:

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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:

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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 Manage Organization Payment Methods in the implementation project task list:

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2. Click Create.
3. Select the LDG associated with this payment method:
4. 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:

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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 Manage Consolidation Groups in the implementation project task list:
3. On the Manage Consolidation Groups page, click Add Row:
4. Enter a name and select the LDG. Description is optional, but useful to provide.
5. Click Save.

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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 Manage 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:

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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.

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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.

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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 Manage 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:

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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 Manage 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:

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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:

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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:
1. Select Manage Enterprise HCM Information in the implementation project task list:
2. Update the ‘Transaction Processing Conversion Rate Type’ field with the desired Currency Rate Type.

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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.
3. Click Done.

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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_White_Paper
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 under Workforce Management in the Navigator:
2. In the task list on the left, select Hire an Employee:

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3. On the Identification page, provide the required information:
4. On the Person Information page, provide the required information:

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5. On the Employment Information page, 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.

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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
 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 Manage Salary in the Person Management work area:

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3. Click Create, 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:

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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 Manage 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:

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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 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 Manage Calculation Cards task in the Payroll Calculation work area:
2. Select the employee and verify that Employee Social Insurance Details card is created:

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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 Manage Personal Payment Methods task in the Payroll Distribution work area:

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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, you must add a bank account and provide banking details

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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 Submit a Process or Report task in the Payroll Calculation 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:

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 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.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. 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:
2. Filter the results using the appropriate parameters such as for example the Payroll Name (Payroll
Definition):

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3. Select the desired row and review the results using SOE:

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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:

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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:

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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:
1. Select the Submit a Process or Report task in the Payment Distribution work area.
2. Select the LDG for which the process is being run and the flow pattern Calculate Prepayments:
 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.

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 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.
4. Click Next
5. Click Submit.
6. 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:

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1. Select the Submit a Process or Report task in the Payment Distribution work area
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.
4. Click Next
5. Click Submit.

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6. Review the results at the person level:

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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:

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 Organization Payment Method: Process the employees with the selected organization payment
method.
4. Click Next
5. Click Submit.
6. View the results:

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7. 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:

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 Payroll: Payroll definition for which payroll is being run.
 Organization Payment Method: Process the employees with the selected Organization Payment
Method OPM.
 Start Check Number: This is not applicable to the UAE. You can enter any value here.
4. Click Next
5. Click Submit.

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6. View the results:
7. Select the generated file and view the output:

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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.
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.

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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
2. Select LDG for which the process is to be run and flow pattern Generate Payslips:

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3. Enter the parameters used to run the report:
4. Click Next
5. Click Submit.
6. Click Generate Payslip.

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7. Click View Results for each employee.
8. Click AEPayslip.pdf.

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Roll Back Process
This is the process in which we can rollback the Calculate Payroll, Pre-Payment, Cheque Payment,
EFT Payment, Payroll Archive, Payslip, Statutory reports or User Created Reports.
Rollback Execution
1. Select the Submit a Process or Report task in the Payment Calculation work area.
2. Select LDG for which the process is to be run and the flow pattern Roll Back Process:

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

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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
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run Form 1:

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3. Enter the parameters to run the report
 Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
 Month: Month for which the report is run.
 Year: Year for which the report is run.
4. Click Next
5. Click Submit.
6. View the report results.

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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.
information. Elements that 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
Report Execution
3. Enter parameters to run the report;

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4. Click Next
5. Click Submit.

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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.
information. Elements that 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.

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Report Execution
3. Enter parameters to run the report:
4. Click Next
5. Click Submit.

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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

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 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
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
2. Select the LDG for which the process is to be run and flow pattern Run Monthly Contributions –
Private Sector:

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4. Click Next
5. Click Submit.
6. View the report results:

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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:
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

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Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area.
2. Select the LDG for which the process is to be run and the flow pattern Run Monthly Contributions –
Government Sector:
4. Click Next
5. Click Submit.

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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)
The setup for retrieving the information is predefined.
information. Elements that contribute to each information block are defined by the element classification.
Elements created during the implementation phase with classifications that are mapped to report fields, contribute
Report Execution
2. Select the LDG for which the process is to be run and flow pattern Run Salary Information File:

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 Employer Reference: Employer reference is a free text field of maximum of 35 characters.
4. Click Next
5. Click Submit.
6. View the Report results:
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.

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Prerequisites
Ensure the following processes are run before you generate this report:
 Payroll Run
 Prepayments
 Payroll Archive
Following is the process flow:
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
1. Select the Submit a Process or Report task in the Checklist work area.
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.
Payroll
Run
Prepayment
Run
Payroll
Archive
Run IPE Report

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 Payroll Statutory Unit: Payroll Statutory Unit for which the report is to be run.
 Month: The month for which the report is to be run.
 Year: The year for which the report is to be run.
4. Click Next
5. Click Submit.
6. View the Report results.

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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.
 Effective As-of-Date: Effective Date for the report.
 Payroll Statutory Unit: Payroll Statutory Unit for which the report is to be run.

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4. Click Next
5. 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:
• The required disability categories (and if required, the disability reason) are tagged with +AE.
• The disabled person is an employee or contingent worker.
• Disability data exists, which includes the following:
• The disability status is Active, Approved, Permanent, or Temporary.

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• 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:
 Section for Header.
 Section for Parameters.
 Section for Disabled Worker Information.
Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work
area.
2. Select LDG for which the process is to be run and flow pattern Run Disabled Workers
Report.
 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.
 Disability Category: Disability categories available for users. If left blank, all disability categories will be
processed.
 Effective Date: Disability data active as on this date will be processed.
4. Click Next
5. Click Submit.

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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:
 Statutory Deductions Register
 Payroll Register Report
 Payment Register Report
 Gross to Net Summary Report
 Payroll Activity Report
 Element Result Report
 Payroll Balance 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:
 GLB_TAX_DEDUCTIONS_BALANCE_GROUP

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 GLB_INVOLUNTARY_DEDUCTIONS_BALANCE_GROUP
 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:

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

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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:
 GLB_SUMMARY_GROSS_TO_NET_BALANCE_GROUP
 GLB_GTN_EARNINGS (Balance Category: Hours)
 GLB_GTN_EARNINGS (Balance Categories: Earnings and Supplemental Earnings)
 GLB_GTN_DEDUCTIONS (Balance Categories: Involuntary Deductions, Voluntary Deductions, Tax
Deductions, Social Insurance Deductions, Pre-Statutory Deductions)
 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:

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

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 Person Page Break: Select Yes if you want a Page Break after each Person’s report.
4. Click Next
5. Click Submit.

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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.

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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:
 Payment Process: Allows selecting a specific payment process for which data must be extracted.
 Consolidation Group: Limits the output to a specific Consolidation Group.

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 Payment Category: Limits the output to the selected Payment Category
 Payment Type: Limits the output to the selected Payment Type
 Payment Method: Limits the output to the selected Payment Method
4. Click Next
5. Click Submit.

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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:
 GLB_GTN_EARNINGS
 GLB_GTN_DEDUCTIONS
 GLB_GTN_DIRECT_PAYMENTS

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 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
1. Select the Submit a Process or Report task in the Payroll Calculation work area
2. Select the LDG for which the process is to be run and flow pattern Run Gross-to-Net Report:

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 Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report.
4. Click Next
5. Click Submit.

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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

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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:
 GLB_EMPLOYER_CHARGES_BALANCE_GROUP (Balance Category: Employer Charges)
 GLB_PAYROLL_RELATIONSHIP_OTHER_DEDUCTIONS_BALANCE_GROUP
 GLB_PAYROLL_RELATIONSHIP_PRE_TAX_DEDUCTIONS_BALANCE_GROUP (Balance
Category: Pre-Statutory Deductions)
 GLB_PAYROLL_RELATIONSHIP_TAX_DEDUCTIONS_BALANCE_GROUP (Balance Category:
Tax Deductions)
 GLB_PAYROLL_RELATIONSHIP_EARNINGS_BALANCE_GROUP
 GLB_HOURS_BALANCE_GROUP (Balance Category: Hours)
 GLB_DIRECT_PAYMENTS_BALANCE_GROUP (Balance Category: Direct Payments)
 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:

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 Scope: Select either Summary or Detail.
 Payroll: Payroll definition for which the payroll is to be run.
 Process Start Date: Start date of the process for which the payroll is run.
 Process End Date: End date of the process for which the payroll is run.
 Process Type: Limits the output to a specific process.
 Location: Limits the output to a selected Location.
 Person Page Break: Select Yes if you want a page break after each Person’s report.
the report.
4. Click Next

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5. Click Submit.
Detail Report

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Summary Report

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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.
 GLB_DEDUCTIONS_BALANCE_GROUP
 GLB_SOE_EARNINGS_BALANCE_GROUP
 GLB_EMPLOYER_CHARGES_BALANCE_GROUP

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Report Execution
1. Select the Submit a Checklist task in the Payment Distribution work area.
2. Select the LDG for which the process is to be run and the flow pattern Run Element Result Report:
 Balance: Limits the output to a specific Balance.
the report.

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 Location: Limits the output to a selected Location.
4. Click Next
5. Click Submit.

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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.
 GLB_DEDUCTIONS_BALANCE_GROUP
 GLB_SOE_EARNINGS_BALANCE_GROUP

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Report Execution
2. Select the LDG for which the process is to be run and the flow pattern Run Payroll Balance Report:
 Location: Limits the output to a specific locations.

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the report.
4. Click Next
5. Click Submit.

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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
 Create balance exceptions. Ensure that balances and balance dimensions exist before
generating the report.
 Create at least one Balance Exception Report before you run the payroll flow.

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o Attach balance exceptions in the Balance Exceptions Report
Create Balance Exceptions
1. In the Payroll Calculation work area, from the Tasks pane, Manage Payroll Process Configuration
tasklist, 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:
 Balance Exception Name
 Comparison Type
 Comparison Values
 Balance Name
 Dimension Name: After selecting the balance name, you can specify the dimension name.
 The Variance Type is Amount. Select the Variance Operator
 Specify Variance Value
 Set Severity Level.
6. Click Submit.
Setup a Balance Exception Report
1. In the Payroll Calculation work area, from the Tasks pane, Manage Payroll Process Configuration task
list, 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:
 Exception Report Name
 Consolidation Group
 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.

154
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
1. Select the Submit a Process or Report task in the Payroll Checklist work area.
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:
 Balance Exception Report
 Payroll: Payroll definition for which the payroll is run.
 Process Configuration Group: Select a Process Configuration Group to generate a log file for the
report.
4. Click Submit.
Note: A message appears to verify the payroll flow. If the process is complete, you can view
the report.

155

156
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:
 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.
 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:
 GLB_DEDUCTIONS_BALANCE_GROUP: Used in Global Deductions for Deduction
Report

157
 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:
 Payroll: Payroll definition for which the payroll is run.
 Deduction Category
 Deduction
 Location
 Process Configuration Group: Select a Process Configuration Group to generate a log file for the
report.
4. Click Submit.
Note: A message appears to verify the payroll flow. If the process is complete, you can view
the report.

158

159
Note: The report is sorted by TRU and Department.

160
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:
 Payroll Eligible - Payee is included in the payroll run.
 No Payroll - Payee will not be included in the payroll run.
 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.
 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.

161
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:

162
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:
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.

163
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 that:
 Gratuity payment is triggered in line with the amount entered as override.
 Social insurance deductions are calculated to zero since we are in the month of termination.

164
This is also reflected in the prepayments:
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.
However, if a gratuity calculation card exists then the system will generate an error message. The gratuity
calculation card needs to be deleted before the termination can be reversed or corrected.
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.
 Employee Personal Information
 Employee Termination Information
 End of Service/Other Deductions
 Employee Banking Details

165
Setup for retrieving the information is predefined.
The details of setup in the implementation phase are in the relevant sections containing:
 Employee compensation information
 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:
Elements created at the implementation phase:
 Having classifications that are mapped to report fields
 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

166
4. Click Next
5. Click Submit.
6. View the Report results

167

168
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.
obligation.
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.

169
Oracle Fusion HRMS (UAE): Payroll
Implementation and Functional Considerations
March 2016
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