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Contents
Contents________________________________________________________________2
1 General Introduction of the LC ___________________________________________3
2 Key Features __________________________________________________________4
2.1 Contribution Base Calculation ____________________________________________________ 4
2.2 Minimum/Maximum limitation check when calculate the base ____________________________ 4
2.3 Different contribution rule for the same allowance wage type_______________________ 5
2.4 Base re-calculation period ____________________________________________________ 5
2.5 Special contribution rule during the Hiring/Termination period ____________________________ 5
2.6 Absence processing _________________________________________________________ 6
2.7 Other New functions _________________________________________________________ 6
3 Solution Introduction ___________________________________________________7
3.1 Basic Customizing __________________________________________________________ 7
3.1.1 Fund Type Definition _______________________________________________________ 7
3.1.2 Allowance Contribution Rule ________________________________________________ 15
3.1.3 Absence for Fund Type ____________________________________________________ 17
3.1.4 Contribution Rule during Join or Exit SI ________________________________________ 19
3.2 Social Insurance Infotype Enhancement _______________________________________ 21
3.2.1 IT3301 - Social Insurance Qatar _____________________________________________ 21
3.2.2 Feature 'QASIF' __________________________________________________________ 22
3.2.3 Feature 'QASIS' __________________________________________________________ 22
3.3 Payroll Enhancement _______________________________________________________ 24
3.3.1 Wage types used in the new SI solution _______________________________________ 24
3.3.2 Payroll Schema Enhancement _______________________________________________ 26
3.4 Special Scenarios Handling __________________________________________________ 28
3.4.1 SI Base Adjustment Manually _______________________________________________ 28
3.4.2 Join and terminate in same month ____________________________________________ 28
3.4.3 Retroactive ______________________________________________________________ 28
3.4.4 Contribution greater than actual income _______________________________________ 28
4 Implementation Guide _________________________________________________29
4.1 Common Steps for both New Customer and Upgrade Customer ___________________ 29
4.1.1 Fund Type Definition ______________________________________________________ 29
4.1.2 Schema Change__________________________________________________________ 29
4.2 For New Customer _________________________________________________________ 31
4.2.1 Active the feature 'QASIF' __________________________________________________ 31
4.2.2 Active the feature 'QASIS' __________________________________________________ 32
4.2.3 Hide the old 'SI Fund Type' field by V_T588M Manually ___________________________ 32
4.2.4 Maintain Infotype 3301 - Social Insurance Qatar _________________________________ 33
4.2.5 Initialize the Contribution Base_______________________________________________ 33
4.3 For Upgrade Customer ______________________________________________________ 38
4.3.1 Step 1: Delimits Records of Infotype 3301 ______________________________________ 38
4.3.2 Step 2: Adjust Contribution Base _____________________________________________ 40
Ø All GCC nationals covered by this law in Qatar and enrolled under this insurance law will
not be entitled for end of service compensation
Ø Same Logic is applied in case Full contribution to be paid at the termination month
Ø In case there is minimum for contribution basis and employee salary is below this min.
so; employee should bear the difference between the min. basis salary and the actual
salary. E.g. Omani Employee salary is OR 160 then, employer will cover (9.5% of 160) and
employee will cover 6.5 % of 160 + 16% of (180 – 160).
Ø As general rules: employee will cover the contribution differences that results from
a. Contribution basis differences against the min. and max.
b. Differences in compensation allowances other than the basic salary
2 Key Features
2.1 Contribution Base Calculation
Ø In New Solution
Except Qatari employees, Employer will only share the SI contribution on Basic
salary; employee him/herself should burden both the EE and ER rate.
For example:
· Contribution Rate : EE Rate: 9% ER Rate: 9%
· Basic Salary : 8000 QAR
· Housing Allowance : 1000 QAR
· EE SI Contribution = 8000 * 9% + 1000 * (9% + 9%)
· ER SI Contribution = 8000 * 9%
Ø In Old Solution
Only calculate one base, and EE and ER share contribution on this base
In previous example:
· EE SI Contribution = (8000 + 1000) * 9%
· ER SI Contribution = (8000 + 1000) * 9%
Ø In Old Solution
There is fixed logic: Employer always share the delta contribution
In previous example:
· EE SI Contribution = 1000 * 9%
· ER SI Contribution = 1000 * 9%
2.3 Different contribution rule for the same allowance wage type
Ø In New Solution
For one allowance wage type, it may be included into the SI contribution base
in one fund type, but for others, it is not.
Also, there should be a customizing about who is responsible to pay the
allowance contribution, i.e. employee only, employer only, or both.
For example:
'M025 - Housing Allowance' need to be included in SI base for KSA, but for Kuwait it
is not.
Ø In Old Solution
The processing class 63 is controlling whether one allowance wage type need
to be included into the SI validation base or not. Once it is determined, i.e. this
wage type will be included into the base for all the fund types.
For example:
The housing allowance needs to be included into SI base for KSA, but not for Kuwait,
so you should make the customizing as follow:
· '9025 - Housing Allowance (For KSA)', set Processing Class 63 with '2'
· '9026 - Housing Allowance (For KW)', set Processing Class 63 with blank
Ø In Old Solution
Base re-calculation will only happen in EE's hiring period or Jan. in ever year.
Ø In Old Solution
Only if the leave day is the last day of current period, then contribute SI.
Otherwise, the next employer always covers the contribution for his new hiring
EE.
Ø In Old Solution
No matter what the unpaid absence type, always deducted the unpaid periods
by using factoring function.
Ø Bonus Distribution
Now, for the bonus paid to the employee in current year, you can specify
whether to distribute this bonus in to the SI base from 1.Jan of next year.
3 Solution Introduction
In this chapter, you will get acquainted with how the new SI legal change is covered by
this new solution.
You can access the customizing by 'VC_t7QA84' in t-code SM34, or by the IMG path:
Payroll Qatar (PY-QA) -> Social Insurance-> Statutory Social Insurance Settings-> Renewed
Solution as of SP16-> Define Statutory Social Insurance Contributions
Select a line in the fund type in the list above, and then move into the detail
maintenance screen:
Header Part
· Start Date and End Date
You can delimit this record by the date period when you need change some
customizing, e.g. in a legal change, a new rate need to be setup.
· Country
A fund type need to be associated with a country code, and this is mandatory.
When maintaining the fund type for an employee in infotype 3301(Social
Insurance Qatar), system will perform a check between employee's
nationality and the Country code linked in the fund type.
· Currency
Specify the currency unit for the amount used in the fund type definition, e.g.
'Minimum Limit'. When running the payroll calculation, the currency will be
exchanged to the local currency, i.e. 'QAR'.
· Main Fund
This is a very important flag. The 'Main Fund ' means the 'Employer's' fund,
that is, the main fund is the one in which the employer registered. For
example, a company is running its business in Qatar, and it belongs to the
private sector. So, the 'GRPA-PVT' should be specified as 'Main fund'.
In the same period, the 'Main Fund' should be uniquely among all the fund
types.
Contribution Rate
· Employee Rate
This is the SI contribution rate which the employee should contribute.
· Employer Rate
This is the SI contribution rate which the employer should contribute.
As illustrated in chapter '2.1', in most of the cases, the GCC employees should
burden both the 'EE and ER' rate for the allowances income. So, let's take
some cases to get a clear understanding for the calculation logic.
Basic Scenario:
· Kuwait Employee works in Qatar
· 'GRPA-PVT' is the main fund (Employer's fund)
· 'PIFSS-PVT' is the employee's native fund. (Employee's Fund)
· Employee's Salary:
Basic Salary 600 QAR
Allowance 100 QAR
· As required by 'PIFSS-PVT',
Share Base 600 QAR (EE Rate 8.5%, ER Rate 10%)
EE Burden Base 100 QAR (EE Rate (8.5% + 10%), ER Rate: 0)
Minimum Limit 900 QAR
Variance Cont. By 'Employee'
Case 1
· Minimum limit of main fund 'GRPG-PVT'(employer's fund) is set as 500
QAR
Step 1: Check the actual 'Total' contribution base against the min. limitation
in employee's native fund, and then allocate the 'delta' amount to
corresponding base.
Step 2: Cross check the 'Basic Salary' against the min. limitation on main fund
(Employer's fund).
1. The basic salary is 600, greater than the main fund min. limit 500,
so no further calculation needs to do.
2. EE Contribution = Share base * EE Rate + EE Burden Base * (EE
Rate + ER Rate) = 600 * 8.5% + 300 * (8.5% + 10%)
Case 2
· Minimum limit of main fund 'GRPG-PVT'(employer's fund) is set as 700
QAR
Step 2: Cross check the 'Basic Salary' against the min. limitation on main fund
(Employer's fund).
1. The basic salary is 600, less than the main fund min. limitation
700, so the employer has the responsibility to help the employee
'Share' another 100 QAR.
Case 3
· Minimum limit of main fund 'GRPG-PVT'(employer's fund) is set as 1000
QAR
Step 2: Cross check the 'Basic Salary' against the min. limitation on main fund
(Employer's fund).
1. The basic salary is 600, less than the main fund min. limitation
1000, so the employer has the responsibility to help the employee
'Share' another 400 QAR.
2. Because the EE's burden base is just 300, so employer will help
EE share the allowance up to 300 QAR, but not 400 QAR
Share Base = 600 + EE's Total Burden Base = 600 + 300 = 900
EE Burden Base = 300 - Employer Delta = 300 - 400 = Reset to 0
1. Check the Actual total base against employee's native fund, and
allocate the delta amount according the customizing 'Variance
contributed by' of the fund type.
As illustrated in sector '2.1', in most of the cases, the GCC employees should
burden both the 'EE and ER' rate for the allowances income. So, let's take
some cases to get a clear understanding for the calculation logic.
Basic Scenario:
· Kuwait Employee works in Qatar
· 'GRPA-PVT' is the main fund (Employer's fund)
· 'PIFSS-PVT' is the employee's native fund. (Employee's Fund)
· Employee's Salary:
Basic Salary 6000 QAR
Allowance 2000 QAR
· As required by 'PIFSS-PVT',
Share Base 6000 QAR (EE Rate 8.5%, ER Rate 10%)
EE Burden Base 2000 QAR (EE Rate (8.5% + 10%), ER Rate: 0)
Maximum Limit 5000 QAR
Excess Cont. By 'Employee'
Case 1
· Maximum limit of main fund 'GRPG-PVT'(employer's fund) is set as 8000
QAR
Step 1: Check the actual 'Total' contribution base against the maximum
limitation in employee's native fund, if exceeds, reduce the delta
amount by the following sequence: first deduct from EE Burden Base,
then deduct the Share base.
Step 2: Cross check the 'Basic Salary' against the maximum limitation on
main fund (Employer's fund).
1. The basic salary (share base) now is 5000, less than the main fund
maximum limitation 8000, so no further calculation needs to do.
2. EE Contribution = Share base * EE Rate + EE Burden Base * (EE
Rate + ER Rate) = 5000 * 8.5% + 0 * (8.5% + 10%)
ER Contribution = Share Base * ER Rate = 5000 * 10%
Case 2
· Maximum limit of main fund 'GRPG-PVT'(employer's fund) is set as 4000
QAR
Step 2: Cross check the 'Basic Salary' against the maximum limitation on
main fund (Employer's fund).
1. The basic salary (share base) now is 5000, still greater than the
main fund maximum limitation 4000; so, the delta amount
against employer fund is 1000.
2. According to the 'Excess Contributed by' is 'Employee',
So, reduce the delta from Share base, and add it to the EE Burden
Base
Share Base = 5000 - Delta = 5000 - 1000 = 4000
EE Burden Base = 0 + Delta = 1000
3. EE Contribution = Share base * EE Rate + EE Burden Base * (EE
Rate + ER Rate) = 4000 * 8.5% + 1000 * (8.5% + 10%)
ER Contribution = Share Base * ER Rate = 4000 * 10%
· In the new solution, you can specify in which payroll period the contribution
base should be recalculated.
· For the new hired employee, the SI contribution base will always be
calculated in the hiring period, no matter the current payroll period is marked
'Recalculate' or not.
· Once the SI base is created, although there is salary increase during the
following periods, the SI base will not be changed until the next period which
is marked with 'Recalculate'.
Contribution Method
· Prorated Contribution
If the contribution method is marked as 'Prorated', system will prorate the
contribution base to the actual active period, as figured below:
Note: in the new SI solution, you can specify how to handle the 'Absence'
days in many ways, which will be described in the following chapter. In
order to make it simple, in this case we assume the processing method for
'Unpaid Absence' is 'Totally Deducted from Base'.
In the following example, assume the total base is 1000 QAR, so after
proration:
Actual SI Base = 1000 * (31.Jan - 25.Jan + 1) / 31
· Full Contribution
If the contribution method is marked as 'Full Contribution', system will always
contribute the SI for the whole month.
For the same example above, the actual SI base is keeping 1000 QAR without
proration.
· Simulate Housing Allowance
For some fund types, although the employee doesn't receive a housing
allowance from his employer, but he is using the accommodation provided by
employer. So when calculating the SI base, the housing allowance should be
simulated by a specific percentage of the basic pay.
For example:
EE is using company's accommodation, but not receiving housing allowance.
So, the estimated housing allowance = 2 * Basic Pay / 12.
After you specify the percentage of the basic pay, you should also input the
housing allowance wage type, by which the system will retrieve the
contribution rule for this wage type (will be introduced in next chapter
'Allowance Contribution Rule').
· Total Allowance Upper Limit
For some fund types, there is an upper contribution limit for the total amount
of the allowances which need to include in the SI Base.
For example:
The total allowances cannot exceed 100% of the basic salary.
For each fund type, input the allowance wage type here if it needs to be included into
the SI contribution base.
Note: in the new SI solution, the Process class 63 + Sepc. 2 will NOT be used to
control the allowances anymore.
Contributed By
· Employer
It indicates this allowance wage type should be burden by employer itself, i.e.
employer should contribute both the 'EE Rate' and 'ER Rate' for this allowance
amount.
Technically speaking, this allowance wage type will be included into '/108 - SI
ER Cont. Base' when payroll running
· No Contribution
It indicates this no need to contribute on this allowance. It is usually used
when you delimit a record to exclude the contribution of one wage type, but
don't want to delete it from the table.
Distribute and Period
The 'Distribute' option is used to control whether to distribute the bonus received in
current year to the SI base from Jan. of next year.
For example: 'M230 - Direct Bonus' is marked with distribute with period 12
Employee got a direct bonus 24000 QAR in Dec.2013, in Jan.2014, the base will be
re-calculated, so system will check whether there is M230 in employee's payroll
result of 2013, if found, then divided the amount by the period 12 (24000 / 12 =
2000 QAR), and then add it into the SI base as of Jan.2014.
Upper Limit
For some fund types, there is an upper contribution limitation for individual
allowance.
For example
For Bahrain employees, the maximum contribution against the social allowance
shouldn’t exceed BD 150 (i.e. 21% of social allowance shouldn’t exceed BD 150).
So, in order to make it simple, the 'Base' should be input in the 'Upper limit' field,
but not the actual contribution, i.e. in the example case, you should input 150 /
21% = 715 BD here.
Notice: only if the contribution method in the fund type is marked as 'Prorated
Contribution', then the 'Absence for Fund Type' node is accessible, otherwise, system
will block you with an error message.
General Rule:
· When payroll is calculating the proration factor, only the absence types
specified here will be take into account, for others, even it is unpaid absence,
but if you didn't customize it here, so it still will be excluded.
· For the absence type customized in this node, only the 'unpaid' part will be
taken into account.
For example,
v Work Injury Leave - 50% Paid
v EE took 3 days work injury leave
v So, only 1.5 unpaid absence days will be deducted from total
working period
· Not Covered
It indictes the unpaid periods of this absence type will be deducted
directly from the total period.
For example:
v Employee took 10 days unpaid leave in Apirl
v Basic salary is 1200
v Actual SI base is 1200 * (30 - 10) / 30 = 800
· Employee
It indictes the unpaid periods of this absence type should be covered by
employee
For example:
v Employee took 10 days work injury leave in April.
v Basic salary is 1200 QAR (Share Base)
v Allowance is 300 QAR (EE Burden Base)
v Actual Share Base = 1200 * (30 - 10) / 30 = 800
v Actual EE Burden Base = 300 + 1200 * 10 / 30 = 700
· Employer
It indictes the unpaid periods of this absence type should be covered by
employer
For example:
v Employee took 10 days work injury leave in April.
v Basic salary is 1200 QAR (Share Base)
v Allowance is 300 QAR (EE Burden Base)
v Actual Share Base = 1200 * (30 - 10) / 30 = 800
v Actual EE Burden Base = 300 * (30 - 10) / 30 = 200
v Actual ER Burden Base = 1200 * 10 / 30 + 300 * 10 / 30 = 500
· Employee and Employer
It indictes the unpaid periods of this absence type should be shared by
employee and employer
For example:
v Employee took 10 days work injury leave in April.
v Basic salary is 1200 QAR (Share Base)
v Allowance is 300 QAR (EE Burden Base)
v Actual EE Burden Base = 300 * (30 -10) / 30= 200
v Actual Share Base = 1200 + 300 * (30 - 10) / 30 = 1300
You can specify the minimum days when employee works in your company, then make 'Full'
contribution for the period, otherwise no contribution at all.
For example:
v Employee joins your company on 11.Apr
v Basic salary is 1200 QAR (Share Base)
v Allowance is 300 QAR (EE Burden Base)
v The contribution rule is setup as figured above
Because the actual working days is 20, then using the 'Full' contribution rule
v For active days, it is the same as regular period, i.e., basic pay is share by EE and
ER; allowance is burden by EE (by customizing), since this is 'Full' contribution, so
absence will be ignored though it is defined for regular period.
Active Period:
Share Base = 1200 * 20 / 30 = 800
EE Burden Base = 300 * 20 / 30 = 200
v For inactive days (non-working days), all the base, including share base and EE
burden base, should be burden by EE (by customizing).
Inactive Period:
Share Base = 0.
EE Burden Base = 300 * 10 / 30 + 1200 * 10 / 30 = 500
When the employee's actual working days is less the minimum limit required by the
full contribution rule, then it moves to the other processing rule 'When not meet Full
Contribution Condition',
It has 2 valid options:
· No Contribution
In this option, no contribution should be made for the working period.
· Prorated Contribution
In this period, only prorate the total SI base to the actual working days. It is
the same proration rule as we illustrated before.
For example as figured below, only the period from 25.Jan to 31.Jan will be
prorated.
After you finished the data migration (a utility report is provide to help you do this,
and it will be introduced in the following chapter), it is recommended to hide the old
fund type field by V_T588M.
· ‘X’ indicates the fund type of the new solution will be used, and relevant logic
and validation will be activated.
· 'Blank' indicates the SI fund type field will still be used, and the new fund type
field will be hidden.
The 3 WT contains the SI contribution base for the whole period, and will be
created during the hiring period or base re-calculation period, and will be post to
the next payroll periods until the base re-calculation period.
For Qatar
/341 GRPA EE Contr. = /106 * EE Rate + /107 * (EE Rate + ER Rate)
/342 GRPA ER Contr. = /106 * ER Rate + /108 * (EE Rate + ER Rate)
/343 GRPA Total = /341 + /342
For Oman
/361 Oman EE Contr. = /106 * EE Rate + /107 * (EE Rate + ER Rate)
/362 Oman ER Contr. = /106 * ER Rate + /108 * (EE Rate + ER Rate)
/363 Oman Total = /361 + /362
For Saudi
/371 Saudi EE Contr. = /106 * EE Rate + /107 * (EE Rate + ER Rate)
/372 Saudi ER Contr. = /106 * ER Rate + /108 * (EE Rate + ER Rate)
/373 Saudi Total = /371 + /372
For Bahrain
/381 Bahrain EE Contr. = /106 * EE Rate + /107 * (EE Rate + ER Rate)
/382 Bahrain ER Contr. = /106 * ER Rate + /108 * (EE Rate + ER Rate)
/383 Bahrain Total = /381 + /382
For Kuwait
/391 Kuwait EE Contr. = /106 * EE Rate + /107 * (EE Rate + ER Rate)
/392 Kuwait ER Contr. = /106 * ER Rate + /108 * (EE Rate + ER Rate)
/393 Kuwait Total = /391 + /392
For Others
/394 None GCC EE Contr. = /106 * EE Rate + /107 * (EE Rate + ER Rate)
/395 None GCC ER Contr. = /106 * ER Rate + /108 * (EE Rate + ER Rate)
/396 None GCC Total Contr. = /394 + /395
Summarized Contribution
/261 Total EE SI Contr.
/262 Total ER SI Contr.
Not only the Statutory social insurance contribution, but also the private
insurance contribution /311 and /312 will be summarized into /261 and /262 also.
PCR 26 is used to cumulate the country SI contribution wage type into the
summarized contribution wage type /261 and /262
In the new solution, 3 new wage types M397, M398, M399 are provided, similar with M390
in old solution; they are used in following methods:
3. If amount = 0, the retroactive will be triggered, but the SI base /111, /112 and /113 will
be recalculated automatically according to the SI customizing.
3.4.3 Retroactive
SI Base will not re-calculate during the retroactive period calculation, expected to use
M397, M398 and M399 to enforce a base re-calculation manually.
4 Implementation Guide
In this chapter, you will get acquainted with how to implement the new SI solution.
After you apply the SAP support package, you will get all the functions. But there are
still some customizing tasks you need to do.
4.1 Common Steps for both New Customer and Upgrade Customer
No matter you are a new customer to implementing the SAP HCM system for the first
time, or you have already running your business by SAP HCM system, there are some
common customizing steps for you before using this new SI solution.
You can access the customizing by 'VC_t7QA84' in t-code SM34, or by the IMG path:
Payroll Qatar (PY-QA) -> Social Insurance-> Statutory Social Insurance Settings-> Renewed
Solution as of SP16-> Define Statutory Social Insurance Contributions
· The IMG node 'Solution Delivered via SP00' is the old version of Qatar Social
Insurance
· The IMG node 'Solution Delivered via SP16' is the new version of Qatar Social
Insurance.
2. In main schema 'QA00, change line #260 'COPY QASI' to 'COPY QAS0'
3. The same schema change applied to the Qatar public sector payroll schema
'QAU0'.
· In sub-schema 'QAU1', replace 'QAPF' with 'QAIB'
· In main schema 'QAU0', replace 'QASI' with 'QAS0'
After finished the common steps in chapter '4.1', then continue the following steps:
Maintain the default SI value based on your business needs and active the feature. This
return value will used as default value when create a new Infotype 3301 record.
4.2.3 Hide the old 'SI Fund Type' field by V_T588M Manually
In order not to impact the live customer, by default, the old 'SI Fund Type' is not
hidden. So, it is recommended that you hide it manually by the maintenance view
V_T588M, although it will not impact anything if you leave it as it is.
In most of the cases, before you implementing the SAP HCM solution, you have
already running your business and give the payment to your employees. In other
words, each employee has already had a contribution base.
If you are implementing the SAP HCM solution not in January, e.g. in March, so you
have to specify the contribution base for each employee manually.
You can access the utility reporting program name 'HQAISIM0' in t-code SE38, or by
the IMG path:
Payroll Qatar (PY-QA) -> Social Insurance-> Statutory Social Insurance Settings-> Renewed Solution as of
SP16-> Migrate Existing Master Data
· Adjustment Date
This date will be used as the original date in IT0015
If you are using your own wage types, e.g. '9397', '9398' and '9399', you
can also input them on the selection screen. But be making sure your own
wage type's processing class 62 is specified correctly.
· Test Run
This mode is used to test run the reference amount.
5. ALV Grid
After input the required selection data, press F8 to execute the report, then you
will enter to the ALV Grid screen.
System will simulate a payroll run by the period 01 of next year, and retrieve the
relevant amount as the reference for each Base.
The 3 field highlighted in yellow is the reference value which will be as the default
amount for M397, M398 and M399. And these 3 fields are editable, you can
correct the value if it is different from employee's actual SI base.
6. Update
After you corrected amount for the all the employees, then select all the lines in
this grid, and press the 'Direct Update' button. (In the example, the 'Directly
Update' execution mode is selected)
System will call an online PA30 transaction to let you update the adjustment
wage in IT0015 one by one explicitly.
After finished the common steps in chapter '4.1', then continue the following steps:
3. Execution Option
In the example, we select 'Update Directly'
© Copyright SAP AG 2013 Page 38 of 40
Social Insurance Legal Change for Qatar Private and Public Sector
4. ALV Grid
After running the reports, all the valid employees will be listed in the ALV grid
with old fund type and new fund type.
The new fund type field is editable.
5. Update
After all the lines have been corrected, then select all the lines and press the
'Directly Update' button.
System will call an online PA30 transaction to delimit the IT3301 record explicitly.
The step 2 is very similar with the 'Base Adjustment for New customer'. Please refer
to the detail process in chapter '4.2.3'.