[Design Request] Middle East Payroll and HR

Hi,

We are Frappe are looking forward to add features specifically required for Middle East HR and payroll. Hence, inviting community members working in this space to help us identify the specific gaps. Once there is a proposal, we can further discuss it to validate it’s generic nature.

Will request community members to brief a feature with the use-case example, so that other members can understand it easily and further comment. Let’s try and follow this format.

Feature name

Feature description

Feature example

Required in regions

To set the momentum, listing some of feature request as heard from other community members. Please validate if these are generic or specific process followed in certain companies only.

Feature 1

Days in Payroll Month

Description

30 days in payroll month, irrespective of actual no. of days as per gregorian calendar.

Example

Though the base amount of Employee Salary will remain same, this will have impact on the Leave Without Pay calculation of an Employee. It will not be prorated based on actual months, but always consider 30 days in a month.

Region

Heard in Qatar region. Does other region have same feature?

Feature 2

Yearly Leave Management

In ME, each migrant Employee is entitled for 30 days / 45 days (based on grade) of leaves in a year. Is it manageable using the current Leaving Type and Leave Allocation features in ERPNext? If not, what are the additional enhancements needed in the Leave and Payroll cycle?

Some examples on Payroll Calculation

Scenario 1:

If Employees takes HRA and transportation allowance (tracked in Employee master)
Then, final salary = 75% of Basic + Work Allowance

i.e HRA and Transportation should not be included for calculating final salary / Gross salary.

Scenario 2:

If Employee doesn’t take HRA and Transportation allowance
Then, final salary = 75% of Basic + HRA + Transportation + Work Allowance
i.e HRA and Transportation should be included for calculating final salary / Gross Salary.

Note: Please validate if these use-cases are generic or specific to some companies processes.

Feature 3

Additional fields in Employee master

What are the additional custom fields to be added to capture about Employee? Like some countries give IQAMA etc. What is general term for it? Please propose other such “generic only” fields.

Feature 4

Gratuity?

What is standard process for Gratuity? We have introduced Gratuity for Indian customers though.

Please share your comments on the above and share new request. Later on, we can amend this post to update which requirements are validated and can be considered in the roadmap.

@GulfCyber @Saumyaseelan_Pv @CraftInteractive and other users / partners from ME region.

9 Likes

Dear Umair, Thank you for the initiation. Please find below some features requested by clients in UAE. Let us know if you need more information on the same.

Feature 1: Days in Payroll Month - We are usually taking the payment days as per the Gregorian calendar.

Feature 2: Yearly leave management - Using the earned leave feature, we are allocating the annual leaves automatically every month. Some companies will have 30 days calendar leave and some will have 22/25 working days leave or both.

Feature 3: Additional fields in employee master - Apart from the passport details in personal details, we require the Emirates id/Iqama details, Labour card details, Visa Details etc. Also for the WPS report, we require IBAN number, CBID code, WPS number etc in salary details.

Feature 4: Gratuity - In UAE, there are standard rules for the gratuity calculation. This will be based on the contract type and the separation method. You can check the below link for the calculation details.

Feature 5: Gratuity payable and leave salary payable - Every month, these payable accounts should be updated automatically upon the payroll submission. We are hoping that we will be able to achieve it through some formula in salary structure. If we can standardize this process, it will be helpful.

Feature 6: WPS Report - In UAE, the companies are required to generate WPS(Wages Protection System) report after the payroll submission. This has to be sent to the bank or to the exchange. WPS report should be able to download in SIF format and it should contain the employee details as well as the company details.

Feature 7: End of service document - It should contain the gratuity details, leave salary details and the pending salary details of the employee if it is not paid. It is a part of the employee separation process.

Feature 8: Salary calculation with two salary structure- If the salary got incremented in middle of the month, it should take the both salary structure and calculate the salary.

2 Likes

Thanks for the comprehensive list @Saumyaseelan_Pv. I would just add one more feature;

Feature 9: Annual Ticket - Monthly accrual for Airfare cost depending upon home country cost. This should include details of tickets availed/pending, reimbursed or lapsed. The un-availed tickets will also impact the end of service calculation. Provision for repatriation cost should also be considered.

3 Likes

Hello ERPNext Members,

You guys are doing awesome work. i have a suggestion for a feature.
Feature Name: Sales Incentive in Payroll / Salary Slip

Feature description

Calculate Sales Incentive/Sales Commission on monthly basis and add it in Salary Slip

3 Likes

@seehive I assumed you’ve tons of suggestions and feedbacks for UAE payroll system.

Hi Umair,
Awesome news.
I will add to the suggested feature list requested above

Region
UAE

Feature 3 - Additional Fields in Employee Master
Description
I would like to add one more field to the list Nationality

Feature 11 - Leave Allocation Based on Date of Joining
Description
The provision to allocate leaves from employees assigned leave policy based on Date of Joining instead of Leave Period
Explanation
Option to auto allocate earned on leaves based on Date of Joining on a yearly basis.

Feature 12 - Tiered Leave Type
Description
Configure the leave type to be tiered, which enables the transition between fully paid and partially paid on the basis of the number of days consumed.
Explanation
In UAE, Sick Leave tiered in three levels which is available to the employee every year. It is broken down as follows

  1. First 15 Days - Paid Leave
  2. Following 30 Days - Half Paid Leave
  3. After 45 Days - Unpaid Leave

Feature 13 - Report for Accrued Employee Liability / Payables
Description
Report to view all accrued individual employee liabilities like leave salary, gratuity, annual air ticket, etc for all active employees ( similar to accounts receivable / payable report )

Feature 14 - Company Letters Issued to Employees / Employee Letter Request
Description
In UAE, For various official purposes employees need official documents issued by the Company
Explanation
Employees can make a request for the following (most commonly used)

  • Salary Certificate
  • Salary Transfer
  • No Objection Certificate
  • Employment Letter
  • Experience Letter

Employees fill an application, upon approval a print or pdf document with company letterhead is made available to the employee valid for a defined period (usually a month). Some letter types can only be issued once in a year.

2 Likes

Thanks for the inputs.

Could someone please list the entries where all these functionalities will be common? Listing some to start with.

  • United Arab Emirates
  • Saudi Arab
  • Qatar
  • Bahrain
  • Kuwait
  • Oman

Could it be also applied to other EU or North America countries where decent workforce is made-up of foreign country migrants?

Dear Umair,

Thank you for considering the ME market specifically as well as for bringing this topic up. I will list my input based on my experience in working in two governmental organizations.

Yes, this is correct. In all Qatari organizations, the payroll month is 30 days regardless of the Gregorian calendar. However, this is not only affecting the Leave without pay but also the basic salary.

Example:
Governmental organizations in Qatar calculate the salary of the month based on the number of minutes attended. That being said, the employee is required to work 7 hours a day * 30 = 210 hours per month equals 12,600 minutes per month. Those organizations allow an absent of up to 12 hours per month (varies from company to another). Any absence minutes logged beyond this will impact the basic salary.

Sample:
Employee Basic Salary: 3,000 USD.
Monthly Absent Hours Allowance: 12 hours.
Total absent hours of the Employee: 15 hours.
Month: 31 days.

Then the salary for that specific month will be reduced for the amount of 42.86 (rounded) USD. So he will get paid 2,957.14 USD as a basic salary.

I would say the current leave type and leave allocation is more than enough for these specific purposes. The following points would be in need to be enhanced:

  • Hour based attendance. Consequently, there shall be two types of Leaves; Hour and Day leave request. The same thing for the Leave Allocation to support the Hourly based allocation.

  • Auto attendance of Leave days based on Attendance Sheet (uploaded manually or integrated to a biometric device).

The current Employee master captures enough information. The IQAMA is the work permit document and is considered the Civil ID Card. The correct name for it is “Residency Permit”. Companies are suffering from tracking residency permits renewals and expenses. So, creating the following fields for the Residency Permit document is normal in businesses across the GCC countries:

  • Residency Permit Number (digits).
  • Residency Permit Type: Family - Work Permit - Visit Visa - Temporary Work Permit… etc.
  • Expiry Date: Date field. Auto creating a Todo reminder before a specific number of days would be welcomed by all companies.

The Gratuity according to the HR Law in most GCC countries has the following criteria:

  • Less than a year - No Gratuity.
  • Above one year - A basic salary for each year of service.

I don’t know how did you calculate it. I can tell you from my experience in private and public sector in Qatar (and other GCC countries).

Company provides Accommodation and Transporation to employees:
Final Salary = 100% of Basic Salary (and any other financial benefits).

Company doesn’t provide Accommodation and Transporation to employees, instead pays allowances:
Final Salary = 100% of Basic Salary (and any other financial benefits) + Accommodation Allowance + Transportation Allowance.

And this is Generic in the GCC countries.

I hope what I have written above would be of assistance. I am not an HR expert and new to the ERP world.

4 Likes

Hello, I am a user considering to use ERPNEXT in Qatar. Yes it is important to establish Middle east Payroll and HR. I would appreciate if you could implement this asap so I can purchase or use it,
what is the time line you are considering to implement Middle East Payroll and HR in ERP next???

I would appreciate if you could track expire dates on HR module.

  1. expire dates of followings
    1.1 Just mention as National ID which covers ( Saudi= Iqama, Qatar= QID, (Qatar ID), UAE= Emirates ID),

ID number, expire date, scan to attach ID in jpg or pdf

1.2 Driver license
ID number, expire date, scan to attach ID in jpg or pdf

1.3Project ID ( this can be used for worker has to enter plant or site ID).
ID number, expire date, scan to attach it in jpg or pdf

Please enable scan attach in passport also in Jpg or pdf.

In middle east, some companies track blood group of employee also so please put blood type in HR module for employee.

Thanks

BlockquoteIn UAE, Sick Leave tiered in three levels which is available to the employee every year. It is broken down as follows

First 15 Days - Paid Leave
Following 30 Days - Half Paid Leave
After 45 Days - Unpaid Leave

Can you further elaborate on which components of the Salary exactly get affected when Employee is paid an only Half salary? Is it for all earning components or can be user specified?

Also, let’s say Employee takes leave for 40 days. The absent days are from 21st April to 30th May. So, when you process the Payroll for the month of May, how Payroll will have impact on leave deduction?

  1. No salary deduction for just 5 days?
  2. 50% salary for days between 6 May - 20th May?
  3. No Leaves beyound 30 days?

Is this split correct or it’s done differently?

In most scenarios it is usually all the earning components, that is part of the Fixed Earnings

For sick leave in this scenario,

  1. April Payroll is will not have any deduction ( As its part of the first 15 days )
  2. May Payroll will have 25 days of half pay ( so 6th to 30th would be half pay)
  3. For future sick leave, the remaining 5 days will be half pay, after a total of 45 days are consumed (15 full paid and 30 half pay days), The employee would have access another 45 days of unpaid sick leave.
1 Like

You might have wanted to send him a private message.

I would like to discuss this matter in public mainly, and to get other partners and community members’ feedback on this, so we can have better understanding and help others to understand similar case, but maybe we need to move it into a different thread.

1 Like

Honestly in the open source world this is possible. If your customer wants to switch service provider they are free to. We have converted many Frappe customers to our services because those customers felt they need more hands on consultation and perhaps some expertise which our company has in the Middle East . I would appreciate the fact that Frappe team is committed to keeping Erpnext open source which is what is allowing many of us to do business freely. Skill, knowledge & availability always tops in the Open Source fields.

1 Like

I agree with you mostly, but ERPNEXT.COM is entirely different from the open source software erpnext which is a community software. I am mainly referring to the company erpnext.com which has formulated an agreement with partners, then doing things that waste the efforts of the partners. of course the customer has the right to choose the service provider but not when we sell their services to our customer then we become outside the loop.

Hi,

As indicated by Alaa, this thread is specifically for Middle Eastern requirements in ERPNext. What you are raising here is an operational issues. I have initiated other thread with Frappe team, so that team can also put their front. Please check with our partnership.

1 Like