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PAY_KSA_EOS_NEW_OVER - End of Service: Overview

PAY_KSA_EOS_NEW_OVER - End of Service: Overview

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The system calculates end of service (EOS) payments based on the settings you make in the Customizing activities in this section of the IMG.

You have two choices in terms of how you configure EOS:

  • The new and most flexible method requires the completion of the following Customizing activities:

  • Configure End of Service Provisioning and Payout Policy, where you specify the EOS payment policy based on the termination reasons. In addition, you define employee groups (such as expats and GOSI-eligible employees) and specify the statutory requirements, such as minimum and maximum payout amounts and the amount of eligible payout for various service durations, such as the payout amount for employees with 1-3 years of service, 3-5 years of service, and so on. An added flexibility in this activity allows you to define "Additional Slabs" for EOS payment. You can use this additional slabs option to set up additional, non-statutory payments for employees, such as loyalty bonuses.

  • The old method of configuring EOS payments provides less flexibility (for example, you cannot add additional payment slabs) and makes its calculations using payroll constants. The activities associated with this method can be found under EOS Configuration - Old Method.

By default, the system uses the old method to provision and pay out end of service gratuities. To enable the new method, you must go to schema SAP9 (for the private sector) and SAU2 (for the public sector), uncomment schema SAEN and comment schema SAEO.






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