Until April 2016, UAE based organizations were able to deposit social insurance (SI) contributions of their employees as a bulk amount to one of the six different bank accounts held by GPSSA across various banks in the country. Then, the organization would submit statements in the form of excel sheets or hard copy to GPSSA and GPSSA would follow an internal administrative process to reconcile the deposits with the registered employees. This process posed certain administrative challenges which made the internal reconciliation process vulnerable to human-error and led to subsequent delay in the distribution of the pensions.
In order to improve the process, GPSSA is collaborating with Central Bank of UAE (CB) to leverage UAE Fund Transfer System in order to streamline the pension contribution collection through banks across the country. This is aimed to ensure timely collection and reconciliation of the SI contributions and establishing a quick, secure and reliable process to handle the contributions.
Starting April 2016, the employers are expected to prepare a ECCS contribution file containing the details of the SI contribution such as basic pay, housing, social, cost of living and other allowances of contributing employees and submit this ECCS file to their bank. Once the bank receives this file, the banks will process the social insurance contributions to GPSSA through the CB. This change has been also announced in SAP Note 2254864.
As part of the enhancements to the HCM Localization for UAE country solution, customers can now configure and generate their ECCS file from the system using the new framework. In overtly simple description of this framework, it uses a master interface structure to specify the set of fields that can be used to create the ECCS file after payroll is run for the month. Customers can specify the positioning of the fields and source of the data populated into them based on their needs.
While around 44 fields are made available initially, customer are free to add new fields and configure these in their ECCS file. To add new fields and/or reorganize the fields in the output,
- Add the new/custom field to the master interface structure PAE_GPSSAFTS. Only the fields of this interface structure can be used while specifying the file layout. If you need extra fields in addition to what is available as standard, you can enhance this structure to include your own.
- Position your new fields in the output file.
IMG Path:Payroll -> Payroll United Arab Emirates -> Social Insurance -> Statutory Social Insurance Settings -> Determine Output Layout for GPSSA ECCS Reporting
Under this Customizing activity, you can specify a file layout and map the fields to be displayed. The fields that can be used here are the ones that are available from the interface structure PAE_GPSSAFTS. You can specify the source of data for these fields as fixed values (constants), wagetype values, or the output of program logic. If the source of the value is maintained as program logic, customer can implement BADI HRAE_GPSSAFTS_REP, which is called by the class CL_HRAE_GPSSA_FTS_ADAPTOR during the generation of the output file layout.
Contribution type in the ECCS file determines if the salary details of the employee needs to be updated with GPSSA or not. For instance, if the employee is contributing as per his salary (which is already declared with GPSSA) then the contribution type will be ‘/REF/GPSSA’. If he has had a change in the salary, then the new contributions will be marked with the contribution type as ‘/REF/ADJST’.
- Run program HAEAPBSCGPSSA (transaction code HRPBSAESIRET) to view the employee level break down of the contributions and also to generate the file in the format configured in IMG path mentioned above. This program uses the reporting wagetypes /6xx generated during the payroll run to show the components which form the contribution bases of the various funds.
For more information on support package and software components, please refer to SAP Note 2270732.