[Document title]

Payroll Process
Contents
About Document.........................................................................................................................................3
1 Leave Types..........................................................................................................................................4
1.1 Annual Leave...............................................................................................................................4
1.1.1 Rule of Payment:..................................................................................................................4
1.1.2 Exception.............................................................................................................................4
1.1.3 Carry Forward......................................................................................................................4
1.2 Death of relative..........................................................................................................................4
1.3 Hajj Leave.....................................................................................................................................4
1.4 Maternity Leaves.........................................................................................................................4
1.5 Emergency Leave.........................................................................................................................4
1.6 Medical Leave..............................................................................................................................4
1.7 Exam Leaves.................................................................................................................................4
1.8 Compensatory Holidays...............................................................................................................4
1.9 Leave without Pay........................................................................................................................4
1.10 Delay Hours..................................................................................................................................4
2 Leaves Approval...................................................................................................................................5
3 Payroll Processes.................................................................................................................................5
3.1 Payroll Elements..........................................................................................................................5
3.1.1 Basic Salary..........................................................................................................................5
3.1.2 House Allowance.................................................................................................................5
3.1.3 Transportation Allowance....................................................................................................5
3.1.4 Fuel Allowance.....................................................................................................................5
3.1.5 Bonus...................................................................................................................................5
3.1.6 Food Allowance....................................................................................................................5
3.1.7 OT Hours (Overtime)............................................................................................................5
3.1.8 Tickets..................................................................................................................................6
3.1.9 Others..................................................................................................................................6
3.1.10 Grouping of Elements (Bank Others)....................................................................................6
3.1.11 GOSI Deduction of employees.............................................................................................6
3.1.12 GOSI Deduction of Employer...............................................................................................6
3.1.13 Absent Day (LWOP)..............................................................................................................6
3.1.14 Daily Delay...........................................................................................................................6
3.1.15 Loan.....................................................................................................................................6
 3.1.16 Bonus Deduction..................................................................................................................6
3.1.17 Vacation Deduction..............................................................................................................6
3.1.18 Other Deductions.................................................................................................................6
3.2 Vacation Payment........................................................................................................................6
4 Performance Management..................................................................................................................6
4.1 Template for Departmental Heads...............................................................................................7
4.2 Other Employees Template..........................................................................................................7
About Document
This document covers all payroll processing information of Prainsa including Elements, Leaves and
processing rules.
1 Leave Types
Below are the leaves type available in Prainsa.
1.1 Annual Leave
There are two cases of Annual Leaves in Prainsa.
 30 Days paid vacation for Yearly contract. Employees will work 11 months and 12th
months will be paid vacation.
 60-day paid vacation. Who signed 24 months renewable. Like labor.

1.1.1 Rule of Payment:

Vacation will be paid in advance whether it’s 2 days or 60 days, and in regular payroll it will be adjusted
and salary in regular payroll will be zero. Round trip tickets will be issued by the company.
1.1.2 Exception
If there is work requirement and management asked to cancel leaves, then leaves and ticket can be
encashed.
1.1.3 Carry Forward
Carry forward option is there. But leaves can’t be used and will continue all carry forward leaves to end
of service and will be paid at end of service.
1.2 Death of relative
These leaves can be availed if first Degree of relative died.
1.3 Hajj Leave
Hajj Leaves can be availed by employees. Their service length and maximum leaves will be confirmed by
HR.
1.4 Maternity Leaves
Maternity Leaves and rules will be shared by HR.
1.5 Emergency Leave
Emergency Leaves will be treated as Leave without pay. Their LWOP calculations will be shared by HR.
1.6 Medical Leave
These medical leaves will be paid with the rule below. However, it will be confirmed by HR.
Till 60 days full salary
60 to 90 days 75% of salary
90 days onward no salary (Clarity will be after)
1.7 Exam Leaves
Exam leaves are only applicable for Saudi National. There are No. of days and if any service length
required will be updated later.
1.8 Compensatory Holidays
These leaves will be adjusted If any employee worked on gazette holidays, then can take this leave in
replacement of those days worked on gazette holiday.
1.9 Leave without Pay
Any absence which has not been informed is treated as Leave without pay. Absent Day.
1.10 Delay Hours
Delay hours mean on any day employee worked less than 8 hours will be marked as delay hours.
2 Leaves Approval
Below is the approval process of leaves. Which needs to be confirmed by HR.

EmployeeDepartment Head DGM

Notification will be shared with HR Team of Leave Approval.

3 Payroll Processes
Payroll Process includes all the information which will be part of the calculation in earnings and
deductions.
Payroll Period
Prainsa Payroll processed on monthly basis. No. of days for payroll calculations are fixed to 30 days. The
cutoff date of Payroll processing is variable which can be changed as per requirement. Normal cutoff
date is 21st of every month.
Attendance Treatment
The attendance of employees will be treated as below.
 After cutoff date attendance will be treated in subsequent months payroll.
 Attendance between the previous payroll cutoff date and current payroll cutoff date will be part
of monthly payroll.

3.1 Payroll Elements

3.1.1 Basic Salary
Basic salary standard input of Salary.
3.1.2 House Allowance
House Allowance is 25% of Basic Salary for all employees.
3.1.2.1 Exception:
Exception added for Saudi national, minimum House Allowance is SAR 1000/Month.
3.1.3 Transportation Allowance
Transportation allowance is 10% of Basic Salary. But its maximum limit is SAR 1500/Month.
3.1.3.1 Exception in Transportation Allowance
Transportation Allowance exception is allowed as well. Employees who are using company cars or
transport don’t have transportation allowance.
Few employees exceed maximum limit of transportation allowance as well.
3.1.4 Fuel Allowance
Fuel Allowance for few employees who worked at site or out of office. SAR 800 per month paid to them.
3.1.5 Bonus
Monthly Bonus provided to Erection and Production Employees, who exceed their monthly targets
assigned to them.
3.1.6 Food Allowance
Food Allowance is fixed per day as SAR 20 per day and not exceeding SAR 620 per month.
3.1.7 OT Hours (Overtime)
Overtime hours are also paid which are being calculated as
OT Hours Amount = [Basic Salary/240 hours] *(1.5 Hours*Extra Hours)
3.1.8 Tickets
These tickets are only for Saudi nationals. 60% of Basic Salary is allowed. Maximum cap is 5000.
3.1.9 Others
All other pay like trip amount, fix amount or not known paid using Others.
3.1.10 Grouping of Elements (Bank Others)
Below elements of earning are grouped in Bank Others
Total of All allowance which will enter to WPS sheet (TA + Fuel + Food + OT + bonus + tickets)
3.1.11 GOSI Deduction of employees
GOSI Deduction is only for Saudi Nationals.
GOSI Deduction = (Basic + Housing) x 9.75 %
Confirmation: Is there any impact on LWOP or any other Leaves
3.1.12 GOSI Deduction of Employer
GOSI of employer is deducted as below for Saudi and Expat is as below.
GOSI Saudi = 22% of [Basic Salary+ HRA]
GOSI Expat = 2.5 % of [Basic Salary + HRA]
Confirmation: Is there any impact on LWOP or any other Leaves
3.1.13 Absent Day (LWOP)
Days off from work that are unplanned and not approved ahead of time are marked as Absent days.
Absent Day = [(Basic + Trans + Food)/30] x No of Absent days
3.1.14 Daily Delay
Any day if any employee didn’t complete his duty hours will be marked as delay hours.
Late arrival in standard working hours 7:30am to 4:00 pm in HO - 7:00 to 12 lunch breaks 1:00 to 6:00
pm (Factory) 8:00 +2:00 Hour’s mandatory.
Daily Delay = (Basic Salary /240) x No. of hours
3.1.15 Loan
Advances, Personal loan, other Govt fees which is not the scope of employer, etc. will deducted from
total earnings.
3.1.16 Bonus Deduction
If any employee has any leave or LWOP pay in current month his Bonus will be deducted with absent no.
of days.
3.1.17 Vacation Deduction
The amount paid is based of no of days of vacation availed. The deduction of amount of no of days based
on rejoining.
3.1.18 Other Deductions
Any other deductions other than above mentioned.
3.2 Vacation Payment
If any employee’s annual leave is approved then his payment will be made in advance according to the
no. of vacation, he applied for and approved.

4 Performance Management
Performance is measured annually by using an appraisal template. Below template types used.
 Appraisal Template for Head of Department (Template need to be shared by HR)
 Appraisal of Other Employees.
4.1 Template for Departmental Heads
This template will be used for all departmental Heads.
4.2 Other Employees Template
This template will be used for across all department’s employees.