Payroll Rules: GOSI, EOS, Overtime and Allowances
Set up the rules payroll uses – GOSI, end of service, overtime rates, housing allowance, payment types, tickets, grades and vacation days.
These screens hold the rules payroll uses to calculate GOSI, end of service, overtime and allowances. You set them up once per company and change them only when your policy or the law changes. Leave types are explained in Vacation & Leave, and shifts, holidays and pay groups in Attendance & Overtime.
First, understand the salary-part checkboxes
Most rules show a list of checkboxes with your salary parts – Basic, Housing, Transport and so on, as named in HR Setup → Earnings and Deductions. Ticking a box means "include this part when calculating this rule".
Salary: Basic 6,000 · Housing 1,500 · Transport 500.
| Rule | Parts ticked | Base used |
|---|---|---|
| GOSI | Basic, Housing | 7,500 |
| Overtime | Basic | 6,000 |
| End of Service | Basic, Housing | 7,500 |
GOSI
Open GOSI → Create GOSI. Create one rule for each group of employees that contributes differently, e.g. Saudi and Non-Saudi.
| Field | Meaning | Example: Saudi | Example: Non-Saudi |
|---|---|---|---|
| Code / Name / Company | Identifies the rule | SA · Saudi | NS · Non-Saudi |
| Company share % | Paid by the company | 11.75 | 2 |
| Company Max Value | Highest monthly company amount | 5,287.50 | 900 |
| Employee share % | Deducted from the employee's salary | 9.75 | 0 |
| Employee Max Value | Highest monthly employee amount | 4,387.50 | 0 |
| Salary parts | The GOSI base | Basic, Housing | Basic, Housing |
The percentages are examples only – use the rates that apply to your company and employees.
How it is applied: on each employee's Allowance tab, choose the GOSI rule, click ReCalculate Gosi and tick Update GOSI. Payroll deducts the employee share and books the company share as an expense. If you change a GOSI rule later, recalculate the employees who use it.
End of Service
Open End Of Service → Create End Of Service. A rule has up to four service bands. Fill one row per band:
| Column | Meaning |
|---|---|
| Years | The upper limit of the band in years of service (band 1: 0 → Years; band 2: band 1's Years → this Years…) |
| Entitlement | Months of salary earned per year of service in this band (e.g. 0.5 or 1) |
| Share | Part of that amount paid: 1 = full, 0.5 = half, 0.3333 = one third |
| Caption | Band title printed on EOS reports |
Tick the salary parts the gratuity is based on (usually Basic + Housing). With Calculate Based On Work range unticked, each band is paid at its own rate (progressive). Ticked, the whole service is paid at the rate of the band that the total years fall into.
"Termination" – half a month for the first 5 years, a full month after
| Band | Years | Entitlement | Share | Caption |
|---|---|---|---|---|
| 1 | 5 | 0.5 | 1 | First 5 years |
| 2 | 100 | 1 | 1 | After 5 years |
Create a second rule, "Resignation", with the reduced Share your policy gives. The settlement screen lets you pick the right rule. See the full calculation in End of Service.
Over Time Setup
Open Over Time Setup → Create OTS. An overtime rule has two parts that are added together: Calculation 1 with its own salary parts, and Calculation 2 with its own salary parts.
| Rule | Calculation 1 | Parts 1 | Calculation 2 | Parts 2 | Effect |
|---|---|---|---|---|---|
| OT125 · Normal day | 100 | Basic | 25 | Basic | 125% of basic hourly rate |
| OT150 · Weekend / holiday | 100 | Basic | 50 | Basic | 150% of basic hourly rate |
| OTLAW · Saudi labour law | 100 | Basic, Housing, Transport | 50 | Basic | Full hourly wage + 50% of basic |
Overtime rules are linked to days of the week in each Pay Group and to Holidays, and are chosen as the Over Time Type on overtime entries.
House Allowance
Open House Allowance → Create House Allowance to define how housing is worked out. When you pick the rule on an employee's Allowance tab, the housing amount is filled for you.
| Setting | Meaning |
|---|---|
| Use Fixed Amount | Ticked: enter a Fixed Amount per month |
| Allowance Rate (Month/Annum) | Unticked: months of the ticked salary parts per year. Housing per month = parts × rate ÷ 12. A rate of 3 on Basic = 25% of basic |
| Payment Type | Pay Every Month / 3 Months / 6 Months / Yearly |
Other Payment Type
The reasons you use on Other Payment: Bonus, Commission, Ticket Reimbursement, Arrears… Open Other Payment Type → Add Other Payment Type, enter a Code, Name and Company, and choose the HR allowance code – the payslip column the amount should appear in.
Tickets
Open Tickets → Create Tickets to describe a ticket entitlement: code, description, No Of Tickets (Year), the Ticket Type (destination and amount) and whether it is distributed with salary. Assign it on the employee's Allowance tab. Ticket entitlements are for reference; ticket money is paid through an Other Payment.
Grades (optional)
If you turn on Include Grade validation in HR Setup, each employee gets a grade, and every salary part must stay within the grade's range. Open Grade Entry → Create Grade Entry and enter, per salary part, the From and To amounts (0 = no limit). You can also record the grade's contract duration, yearly vacation days, medical category and eligibilities for reference.
Grade G3 – Basic 5,000 to 8,000. Entering Basic 8,500 for a G3 employee shows "Above Max Range" and the record can't be saved until it is corrected or the grade is changed. This also applies to Salary Increments.
Vacation Days
Lists the allowed yearly leave days per leave type – for example 21 and 30 days for Annual Leave. These are the choices in the Days drop-down next to Vacation on the employee's Allowance tab. A value is added automatically when you create a leave type; use Vacation-Days setup → Create Vacation-Days to add others.