KSA - GOSI Enhancements Overview + Settings

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Enhancements to GOSI Contribution Calculation

CONTENTS
Contents ........................................................................................................................................................... 1
Overview ........................................................................................................................................................... 2
Subschema SIAN .............................................................................................................................................. 2
Function SASIC ................................................................................................................................................. 3
Assign Wage Types to SI Funds for Base Calculation Customizing activity ..................................................... 3
Personnel Calculation Rules ............................................................................................................................. 3
Implementation Settings ................................................................................................................................. 4
Enabling subschema SIAN ................................................................................................................................ 4
Assigning Wage Types to SI Funds for Base Calculation ................................................................................. 6

OVERVIEW
Subschema SIAN
This new subschema is provided to KSA schemas for private (SAP9), public (SAU0), and military (SAM0)
sectors. This subschema is to be used instead of SIAC subschema to enable the enhancements to GOSI
contribution calculation provided in this SAP Note. The following image depicts this schema in the system:

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In addition to the new enhancements and fixes, this subschema also covers the symptoms solved in the
notes below:
Note

Description

1841639

KSA: GOSI Contribution Base Change for Salary LT SAR 3,000

1907364

KSA: GOSI Retroactive Calculations

Function SASIC
This new payroll function calculates the base of social insurance (GOSI) contributions based on the different
allowances or rules of GOSI fund grouping of different Gulf Cooperation Council (GCC) member countries.
For more information, see the payroll function documentation in the system. This function reads the settings
made in the new Customizing activity described below.

Assign Wage Types to SI Funds for Base Calculation Customizing activity


In this Customizing activity, you specify the wage types that the system shall consider when calculating the base
for social insurance (SI) contribution for a specific social insurance fund. You also identify which of the wage types
refer to housing allowance.
This enables the SASIC (SI Contribution Base Calculation (KSA)) payroll function to calculate the base in accordance
with the different requirements of SI funds of GCC member countries.

Personnel Calculation Rules


The following new personnel calculation rules (PCR) are provided:

PCR

Description

SA65
SA67

Solve the issue with GOSI-applicable earnings for employees over


50 years of age

SA69
SA61

Overwrites the GOSI-applicable earnings

For more information about the PCRs, see the corresponding system documentation.

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IMPLEMENTATION SETTINGS
Enabling subschema SIAN
Procedure
For each of the schemas mentioned above (SAP9, SAU0, and SAM0), proceed as follows:
1. Edit the schema.
2. Comment out the SIAC subschema as indicated in this image:

3. Uncomment the SIAN subschema as shown in the following image:


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4. Save your changes.

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Assigning Wage Types to SI Funds for Base Calculation


Prerequisites
You have maintained the relevant contribution groupings in Customizing for Payroll under Payroll Saudi Arabia ->
Social Insurance -> Define GOSI Contribution Groupings Customizing activity (V_T7SA22 table).

Procedure
1.
2.
3.
4.

In Customizing for Payroll, choose Payroll Saudi Arabia -> Social Insurance -> Assign Wage Types to SI
Funds for Base Calculation (V_T7SA06).
Enter the wage types that the system shall consider when calculating the base for social insurance (SI)
contribution for a specific social insurance fund.
For the wage types that refer to housing allowance, select the corresponding checkbox.
Save your entries.

Example
Assume that, for a Qatari employee working in the Kingdom of Saudi Arabia, the housing allowance needs to be
included in the SI contribution base. For a Kuwaiti, however, the housing allowance is not included, as the
employee belongs to a different SI fund. Therefore, in this Customizing activity, you enter the following wage types
for the SI fund of Qatar:

M020 (Monthly salary)

M025 (Monthly Housing Allowance)


For this wage type, you also select the Housing Allowance flag.

For a national of Kuwait, you only enter the following wage type for the SI fund of Kuwait:

M020 (Monthly salary)

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