HR & Payroll Workflow

Standard Operating Procedure (SOP) for GCC-Compliant HR Operations

UAE WPS
Saudi GOSI
Qatar GPSA
Gratuity (EOSB)
Multi-Currency
Document Tracking
Phase 1: Employee Master Setup
Goal: Configure employee database with all required information for payroll processing and GCC compliance.
Salary Structure (Pay Heads)

Fixed Components (WPS)

Basic Salary

Housing Allowance (HRA)

Transport Allowance

Other Fixed Allowances

Variable Components

Overtime

Commissions

Bonuses

Incentives

Employee Onboarding

Personal Info: Name, Nationality, DOB, Contact

Identification: MOL ID, Passport, Visa, Emirates ID, Labor Card

Bank Details: Bank Name, IBAN, Routing Code (for WPS)

Employment: Join Date, Designation, Department, Manager

Document Management

Upload passport, visa, Emirates ID copies

Auto-track document expiry dates

Alerts 30/60/90 days before expiry

Output: Employee database configured with compliance requirements ready for payroll
Phase 2: Leave Management System
Goal: Manage leave accruals, applications, approvals, and leave salary advances with GCC labor law compliance.
Leave Types Configuration
Leave Type Annual Days Accrual Carry Forward
Annual Leave30MonthlyYes (Max 60)
Sick Leave15YearlyNo
Maternity Leave45As NeededN/A
Paternity Leave5As NeededN/A
Unpaid LeaveUnlimitedAs NeededN/A
Hajj Leave30OnceN/A
Leave Status Flow
Applied
Pending Approval
Approved
On Leave
Completed
Accrual Engine Features

Daily/Monthly accrual based on tenure

Future balance projection for managers

Sandwich Rule: Configurable weekend inclusion

Extension Logic: Extend active leave

Leave Salary Advance

Separate transaction for advance payment

Auto-exclude from regular payroll (no double payment)

Leave Salary Advance GL Entry:

Debit:Leave Salary Advance (Asset)
Credit:Bank/Cash
Output: Leave balances maintained, applications processed, salary advances handled
Phase 3: Staff Loan Management
Goal: Process staff loan applications, manage repayment schedules, and handle auto-deductions through payroll.
Loan Policy

Max Eligibility: e.g., 3x Monthly Salary

Max Tenure: e.g., 24 months

Loan Types: Personal, Emergency, Housing Advance

Loan Status Flow
Applied
Pending Approval
Approved
Disbursed
Repaying
Closed
Repayment Schedule Generation
Month EMI Amount Principal Balance
11,0001,00011,000
21,0001,00010,000
............
121,0001,0000
EMI Skip/Hold Feature

HR Admin can hold specific month's EMI

All subsequent EMIs shift by one month

Loan tenure extends automatically

Full audit trail maintained

Loan Disbursal GL Entry:

Debit:Employee Loan Asset
Credit:Bank/Cash
Output: Staff loans processed with proper approval, automatic payroll deductions
Phase 4: Payroll Processing
Goal: Calculate and process monthly payroll with all earnings, deductions, and compliance requirements.
Payroll Cycle Configuration

Attendance Cut-off: e.g., 26th to 25th

Payment Cycle: 1st to 30th/31st

Overtime Lag: Post cut-off OT included next month

Payroll Calculation Loop

Additions (+)

Gross Pay (Basic + Allowances)

Overtime

Commissions & Bonuses

Arrears

Deductions (-)

Unpaid Leave (LOP)

Loan EMI (auto-fetched)

Leave Salary Advance Recovery

Social Security (GOSI/GPSA)

Payroll Status Flow
Draft
Calculated
Reviewed
Approved
Posted
WPS Generated

Payroll Journal Entry:

AccountDebitCredit
Salary Expense - BasicXXXX
Salary Expense - HRAXXXX
Salary Expense - TransportXXXX
Employee Loan AssetXXXX
GOSI PayableXXXX
Net Salary PayableXXXX
Output: Monthly payroll processed with all components and proper GL entries posted
Phase 5: WPS & Compliance
Goal: Generate WPS files for GCC compliance and manage all regulatory requirements.
WPS File Generation

One-click .SIF file generation (UAE)

Central Bank compliant format

Upload to banking portal for processing

GCC Compliance Requirements

UAE WPS

.SIF file format

Central Bank standard

Mandatory for all employers

Saudi GOSI

Employer: 12%

Employee: 10%

Monthly submission

Qatar GPSA

Pension contributions

As per labor law

Monthly reporting

WPS File Structure (UAE)

EDR Record: Employee Data Record

SCR Record: Salary Credit Record

MOL Record: Ministry of Labor reference

Output: Compliant WPS files generated, social security tracked, bank transfers processed
Phase 6: End of Service Benefits (EOSB)
Goal: Calculate and process gratuity and final settlement when employee exits the company.
Gratuity Calculation (GCC Standard)
Tenure Gratuity Entitlement
Less than 1 yearNo gratuity
1-5 years21 days basic per year
More than 5 years30 days basic per year
Final Settlement Components

Entitlements (Credits)

Gratuity amount

Accrued leave encashment

Pending salary

Reimbursements due

Deductions (Debits)

Outstanding loan balance

Salary advances

Company property not returned

Notice period recovery

Exit Status Flow
Initiated
Settlement Calculated
Approved
Paid
Closed

Final Settlement GL Entry:

Debit:Gratuity Expense + Leave Salary Expense
Credit:Bank (net payment) + Employee Loan Asset (recovery)
Output: Employee exit processed with proper gratuity, loan recovery, and final settlement
Phase 7: Reporting & GL Integration
Goal: Generate comprehensive reports and leverage full GL integration for financial statements.
Standard Reports
ReportDescription
PayslipsIndividual salary breakdown (PDF)
Salary RegisterMonthly payroll summary for all employees
Bank Transfer FileExcel/CSV for banking portal
WPS RegisterWPS submission tracking
Loan Ledger ReportOutstanding balances across company
Leave Liability ReportFinancial value of accrued leave
Gratuity ProvisionEstimated EOSB liability
Document Expiry ReportUpcoming visa/passport expirations
Full GL Module Integration

Transactional

Cash & Bank Transactions

Journal Vouchers

Bank Reconciliation

Financial Statements

Trial Balance

Profit & Loss

Balance Sheet

GL Integration Summary
TransactionDebit AccountCredit Account
Salary PaymentSalary ExpenseBank
GOSI/GPSASalary ExpenseGOSI Payable
Loan DisbursalEmployee Loan AssetBank
Loan EMI RecoverySalary PayableEmployee Loan Asset
Leave AdvanceLeave Advance AssetBank
Gratuity ProvisionGratuity ExpenseGratuity Provision
Output: Complete reporting suite with full GL integration for financial statements
Employee Lifecycle Summary
Onboarding
Active
On Leave
Active
Exit Processing
Settled
Supported GCC Regions

UAE

Saudi Arabia

Qatar

Kuwait

Bahrain

Oman
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