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This document explains you the way of configuration end of service benefits(EOSB) policy as per your company policy. This document is totally based on Saudi Arabia Payroll solution but it may helps you in other country specific solution such as UAE Payroll, QATAR Payroll, OMAN Payroll where you want configure end of service benefits solution.


SAP provide solution to calculate end of service benefit - EOSB based on Saudi Arabia labor law:

  • End Of Service Benefits Calculation - Old Method


  • End Of Service Benefits Calculation - New Method


For More details: visit this http://help.sap.com/erp_hcm_ias2_2015_02/helpdata/en/ef/4d3fc6dd344c16bf5d433c5ce2a9cb/content.htm?f...

Configuration and Back-end Settings

Step # 1:

For consideration of EOS base calculation payment u have to decide which wage type needs to be consider at the time of EOS calculation, for this

SPRO Path: Payroll > Payroll : Saudi Arabia > End Of Services (EOS) > EOS Configuration - New Method > Assign processing class for EOS Wage types

Table Access: Transaction code SM30 maintain table view V_512W_D

Step # 2:

SPRO Path: Payroll > Payroll : Saudi Arabia > End Of Services (EOS) > EOS Configuration - New Method > Determine EOS Termination Reasons

T-Code: PE03 feature 24EOS

Step # 3:

SPRO Path: Payroll > Payroll : Saudi Arabia > End Of Services (EOS) > EOS Configuration - New Method > Configure End of Service Provisioning and Payout Policy

Resignation Policy:

Design/create your company resignation policy here:

Below screenshot show you how to design Resignation benefits slabs as per Saudi Arabia labor law:

"RES" is a Pay Type variable which you use as return value in your feature 24EOS

"01" is Pay Group variable it will use in case of more than one group in a same policy

In above screenshot if you want that your slabs calculate payment benefit as peroration base then checked mark both button "Prorate" and "Payment Slabs"

Below screenshot show you that i design my resignation policy in three different slabs, kindly note i am considering my year as 360 total days

From DayTo - DayYear SlabBenefit Formula
721180002 - 05(half month Salary/360)*1/3 * Number of services days
1801360005 - 10(Month Salary/360)*2/3 * Number of services days
3601999910 more(Month Salary/360)*1 * Number of services days

From Day 721 - 1800 Days

From Day 1801 - 3600 Days

From Day 3601 - 9999 Days

Please follow me for more Saudi Payroll related processes i can write document for Termination policy soon 

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