diff --git a/content/applications/hr/payroll/payroll_localizations.rst b/content/applications/hr/payroll/payroll_localizations.rst index 5fba1654da..feb5f9c7dc 100644 --- a/content/applications/hr/payroll/payroll_localizations.rst +++ b/content/applications/hr/payroll/payroll_localizations.rst @@ -26,7 +26,7 @@ Payroll localization modules are available for the countries listed below. - :doc:`Australia ` - :doc:`Belgium ` - Bangladesh -- Egypt +- :doc:`Egypt ` - :doc:`Hong Kong ` - India - Indonesia @@ -53,6 +53,7 @@ Payroll localization modules are available for the countries listed below. payroll_localizations/australia payroll_localizations/belgium + payroll_localizations/egypt payroll_localizations/hong_kong payroll_localizations/jordan payroll_localizations/united_arab_emirates diff --git a/content/applications/hr/payroll/payroll_localizations/egypt.rst b/content/applications/hr/payroll/payroll_localizations/egypt.rst new file mode 100644 index 0000000000..d251882fc5 --- /dev/null +++ b/content/applications/hr/payroll/payroll_localizations/egypt.rst @@ -0,0 +1,298 @@ +===== +Egypt +===== + +The Egypt **Payroll** localization package enables payroll processing that fully complies with +Egyptian labor laws. It calculates progressive income tax, employee- and employer-paid social +security, and core salary components, including housing and transportation allowances. + +Configuration +============= + +:ref:`Install ` the following modules to get all the features of the Egypt +**Payroll** localization: + +.. list-table:: + :header-rows: 1 + + * - Name + - Technical name + - Description + * - :guilabel:`Egypt - Payroll` + - `l10n_eg_hr_payroll` + - Payroll module includes all salary rules, leave logic, and compensation rules compliant with + Egyptian Labor Law. + * - :guilabel:`Egypt - Payroll with Accounting` + - `l10n_eg_hr_payroll_account` + - Adds account mappings related to payroll calculations. + +.. seealso:: + :doc:`Egypt fiscal localization documentation <../../../finance/fiscal_localizations/egypt>` + +Egyptian employee contracts +=========================== + +Once an employee has been :doc:`created in the database <../../employees/new_employee>`, a +:ref:`contract must be created `. + +To check if the user already has a contract, navigate to the **Employees** app, then click on the +employee's Kanban card. The :icon:`fa-book` :guilabel:`Contracts` smart button displays a red zero +when no contract exists. Otherwise, it displays :guilabel:`In contract since (contract start date)` +in green. + +.. note:: + Contracts can also be found by navigating to :menuselection:`Employees app --> Employees --> + Contracts`. All contracts appear in a list view, grouped by status. + +Populate the following contractual information in the :guilabel:`Salary Information` tab of the +contract: + +- :guilabel:`Social Insurance Reference Amount`: Used as the base amount for calculating the + :ref:`social insurance employee and employer portions + `. +- :guilabel:`Number of Leave Days`: Used for calculating the :ref:`provision amount for the annual + leave for the employee `. +- :guilabel:`Provision Number of Days`: Corresponds with the number of days used in the calculation + of the :ref:`provision value of the end of service for the employee + `. +- :guilabel:`Total Number of Days`: Refers to the number of days used to calculate the + :ref:`end-of-service benefit paid to the employee when their employment with the company ends + `. + +.. _payroll/payroll_localizations/social-insurance: + +Social insurance +================ + +Social insurance rules calculate the contribution amounts that are to be paid by the employer and +employee to the :abbr:`NOSI (National Organization for Social Insurance)`. This is only available +for Egyptian employees. + +The employer contributes 18.75% of the social insurance reference amount for the employee. On the +other hand, the employee contributes 11% of their insurance reference amount, and that amount gets +deducted from the payslip amount. + +.. important:: + The social insurance reference amount is set per employee in their contracts. + +Leaves +====== + +The following leave types are available to employees working in Egypt: :ref:`Annual leave +`, :ref:`Sick leave `, +:ref:`Unpaid leave `, and :ref:`Other leave types +`. + +.. _payroll/payroll_localizations/annual: + +Annual leave +------------ + +Employees are eligible for 21 days of annual leave, and if the employee requires more days, they +have to be :ref:`requested from HR managers ` accordingly. + +.. important:: + Since the annual leave is fully paid, it is not connected to a salary rule, but it will appear on + the worked days on the payslip form and on the PDF printout. + +.. _payroll/payroll_localizations/sick: + +Sick leave +---------- + +Three cases exist for sick leaves in terms of the amount to be deducted from the employee: + +- :guilabel:`Fully paid`: first 30 calendar days each year (affects only working entries; no payroll + deduction). + + **Payroll computation** =(Daily Wage) + +- :guilabel:`75% paid`: next 60 days; payroll rule deducts 25% of an employee's salary. + + **Payroll computation** =(Daily Wage * 0.25) + +- :guilabel:`0% paid`: after 90 days; payroll rule deducts 100% of an employee's salary. + + **Payroll computation** =(Daily Wage * 0.00) + +.. _payroll/payroll_localizations/unpaid: + +Unpaid leave +------------ + +Deductions are applied on the employee's salary based on the number of unpaid leave days taken, and +it is calculated by dividing the monthly salary for the employee by 30 to get the daily salary and +then multiplying it by the number of unpaid leave days taken. + +.. _payroll/payroll_localizations/other: + +Other leave types +----------------- + +These are leave types considered fully paid and do not affect the end payslip, but are tracked in +the working entries: + +- Maternity leave +- Hajj leave +- Death leave + +Income tax +========== + +In Egypt, employees are subject to a progressive income tax system, where tax rates increase with +higher annual income brackets. + +Tax brackets +------------ + +Depending on the annual income of the employee, the following rates apply: + +.. list-table:: + :header-rows: 1 + :stub-columns: 1 + + * - Taxable Amount + - <600k + - 600k - 699k + - 700k - 799k + - 800k - 899k + - 900k - 1.2M + - >1.2M + * - 0% + - 1-40k + - - + - - + - - + - - + - - + * - 10% + - More than 40k to 55k + - 1 - 55k + - - + - - + - - + - - + * - 15% + - More than 55k to 70k + - More than 55k to 70k + - 1 - 70k + - - + - - + - - + * - 20% + - More than 70k to 200k + - More than 70k to 200k + - More than 70k to 200k + - 1 - 200k + - - + - - + * - 22.5% + - More than 200k to 400k + - More than 200k to 400k + - More than 200k to 400k + - More than 200k to 400k + - 1 - 400k + - - + * - 25% + - More than 400k + - More than 400k + - More than 400k + - More than 400k + - More than 400k + - 1 - 1.2M + * - 27.5% + - - + - - + - - + - - + - - + - More than 1.2M + +Exemptions +---------- + +Employees are eligible to an EGP 20,000 personal exception on their gross income. + +Overtime +======== + +Depending on the time of day and the time at which the overtime is recorded in, the additional +amount to be paid to the employee can be as follows: + +- During daytime hours on working days, the amount is 1.35x times the employee's hourly wage. +- During nighttime hours on working days, the amount is 1.70x times the employee's hourly wage. +- On rest days and public holidays: The amount is 2.0x times the employee's hourly wage. + +.. note:: + Overtime hours are registered as other inputs directly on payslips. + +.. _payroll/payroll_localizations/provisions: + +Provisions +========== + +Provisions are the amounts computed by the employer to account for the payments made to the employee +for :abbr:`EOS (end-of-service)` benefits or annual leave. And it is computed on a monthly basis. + +End of service benefit provision +-------------------------------- + +It is computed by dividing the end of service Provision Number of Days by 12 and multiplying the +result by the daily salary for the employee. + +.. math:: + :class: overflow-scroll + + \text{Payroll computation} = \frac{\text{Provision Number of Days}}{12} \times \frac{\text{Wage} + \text{Allowances}}{30} + +Annual leave provision +---------------------- + +It is computed by dividing the number of leave days by 12 and multiplying the result by the daily +salary for the employee. + +.. math:: + :class: overflow-scroll + + \text{Payroll computation} = \frac{\text{Number of Leave Days}}{12} \times \frac{\text{Wage} + \text{Allowances}}{30} + +.. _payroll/payroll_localizations/end-of-service: + +End of service +============== + +At the end of the service slip that is generated for the employee, there are the following points +that are unique only to the payslip: + +Unused leaves compensation +-------------------------- + +The number of available annual leaves is shown on the employee's record. It is based on the annual +leave type defined in the Payroll settings. It is calculated as the total remaining allocations for +that specific leave type assigned to the employee. + +That number is then multiplied by the daily rate for the employee and added as an allowance on their +payslip. + +End of service benefit +---------------------- + +It is calculated by multiplying the daily wage of the employee by the number of days for the end of +service that is set in the employee's contract. + +.. math:: + :class: overflow-scroll + + \text{Payroll computation} = \frac{\text{Wage + Allowances}}{30} \times \text{End of Service Number of Days} + +Out of contract +=============== + +Out-of-contract days are the days that fall within the payslip period but are not included in the +employee's contract period. The corresponding amount is added as a deduction on the payslip and is +calculated by multiplying the number of out-of-contract days by the employee's daily wage. + +.. math:: + :class: overflow-scroll + + \text{Payroll computation} = \frac{\text Wage + Allowances}{\text{Days in the Month}} \times \text{Out of Contract Days}