[ADD] Payroll: Egyptian localization

content/applications/hr/payroll/payroll_localizations.rst

@@ -26,7 +26,7 @@ Payroll localization modules are available for the countries listed below.
 - :doc:`Australia <payroll_localizations/australia>`
 - :doc:`Belgium <payroll_localizations/belgium>`
 - Bangladesh
-- Egypt
+- :doc:`Egypt <payroll_localizations/egypt>`
 - :doc:`Hong Kong <payroll_localizations/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

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 <general/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 <payroll/new-contract>`.
+
+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
+  <payroll/payroll_localizations/social-insurance>`.
+- :guilabel:`Number of Leave Days`: Used for calculating the :ref:`provision amount for the annual
+  leave for the employee <payroll/payroll_localizations/provisions>`.
+- :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
+  <payroll/payroll_localizations/provisions>`.
+- :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/end-of-service>`.
+
+.. _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
+<payroll/payroll_localizations/annual>`, :ref:`Sick leave <payroll/payroll_localizations/sick>`,
+:ref:`Unpaid leave <payroll/payroll_localizations/unpaid>`, and :ref:`Other leave types
+<payroll/payroll_localizations/other>`.
+
+.. _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 <time_off/request-allocation>` 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}