🇸🇦 Saudi Arabia — SAP SF EC Cloud Payroll 6×6×6 Framework

Saudi Arabia — SAP SuccessFactors EC Cloud Payroll

6-Chapter Configuration & Curriculum Framework

Country Profile: KSA | Module: PYSA | Currency: SAR | Molga: 99 | Payroll: Monthly
Key Statutory: GOSI (10%+11.75%), EOSB/Gratuity, Zakat (no personal income tax), WPS (Musaned/Mudad), Saudization (Nitaqat), Saudi Labour Law

CHAPTER 1 — Foundation & System Landscape

1.1 System Provisioning

  1. Provision PYSA instance; activate HCM_LOC_CI_SA localization via SFW5
  1. Set Molga 99; currency SAR; fiscal year 1 Muharram–30 Dhul Hijjah (Hijri) or Gregorian option
  1. Configure dual calendar support: Gregorian (official) + Hijri (Islamic holidays)
  1. Import KSA Best Practices; configure Arabic RTL interface in SU01
  1. Activate Mudad/Musaned WPS service endpoints for domestic/corporate worker payments
  1. Set Friday–Saturday weekend; configure prayer-time break schedules

1.2 User Settings & SICF

  1. Activate NWBC and PCC SAPUI5 in Arabic RTL mode
  1. Enable bilingual pay statements: Arabic (primary) + English (secondary)
  1. Configure Mudad portal integration for domestic worker WPS
  1. Activate GOSI e-services portal integration endpoint
  1. Configure Nitaqat reporting dashboard in PCC
  1. Set Zakat fiscal year calendar; link to finance module

1.3 Identity & Authentication

  1. Configure SAML 2.0; integrate with Absher/Nafath national identity platform
  1. Set OAuth 2.0 for GOSI API and Mudad API credentials
  1. Configure IP allowlisting for KSA data center (Riyadh/Jeddah)
  1. Enable MFA per CITC (Communications & IT Commission) KSA requirements
  1. Integrate National ID (Iqama) validation with MOI (Ministry of Interior) API
  1. Certificate rotation schedule; 90-day expiry alerts

1.4 Role Management

  1. Roles: Payroll Admin, GOSI Officer, Nitaqat Coordinator, Zakat Manager, WPS Approver
  1. Restrict data by region: Riyadh, Jeddah, Dammam, Makkah, Madinah regions
  1. Configure GOSI portal authority assignment per company registration
  1. Set ESS access for bilingual payslip; Iqama expiry self-service notification
  1. Audit logging for all payroll changes per Saudi Labour Law Article 61
  1. Configure Nitaqat reporting role: view-only export of workforce nationalization data

1.5 OData & PCC Activation

  1. Activate PCC OData services; configure GOSI contribution KPI dashboards
  1. WPS KPI: % employees paid via Mudad/Musaned on time
  1. Nitaqat KPI: Saudi national % per activity band (Platinum/Green/Yellow/Red)
  1. Configure payroll process: Pre-Payroll → GOSI Calc → WPS File → Zakat Provision
  1. Activate Payroll Unified Configuration for KSA; add bilingual portlets
  1. Set RBP: GOSI Officer view-only; WPS Approver submit rights

1.6 Transport & De-clustering

  1. Register KSA cluster tables for de-clustering; optimize GOSI reporting
  1. Validate GOSI contribution validation rules in PYC_CONF_WB
  1. Configure bgRFC for Mudad file background generation
  1. Maintain transport objects for GOSI wage types, Hijri calendar, Nitaqat config
  1. Generate GOSI Providers in PCC; validate all rules show green
  1. Run Admin Transaction Report; configure WPS queue and Mudad submission monitoring

CHAPTER 2 — Enterprise Structure & HR Master Data

2.1 Enterprise Structure

  1. Company Code: KSA legal entity; currency SAR; country key SA
  1. Personnel Areas: SA01=Riyadh, SA02=Jeddah, SA03=Eastern Province, SA04=Makkah, SA05=Madinah, SA06=Asir, SA07=Other
  1. Personnel Subareas: private sector vs. government-linked entity distinction
  1. Assign PA→Company Code; set Molga 99
  1. Employee Groups: Saudi National, GCC National, Non-GCC Expat, Domestic Worker
  1. Org units: reflect Vision 2030 project entities and Aramco/SABIC subsidiary structures

2.2 Employee Groups & Payroll Groupings

  1. EG: Saudi National (GOSI mandatory), GCC National (GOSI voluntary), Expat (no GOSI)
  1. ESG: Bands aligned to Saudi job grade framework
  1. Payroll Area SA_MON: monthly cycle; WPS deadline = 10th of following month
  1. ES Grouping for PCR: drives GOSI Saudi vs GOSI GCC vs no-pension branching
  1. Configure Saudization (Nitaqat) quota tracking per activity type
  1. Domestic worker payroll area SA_DOM linked to Musaned portal

2.3 Personnel Actions

  1. Infogroup: IT0002 (Iqama/National ID), IT0006, IT0007, IT0008, IT0185
  1. Actions: Hire (Saudi/Expat), Iqama Renewal, Transfer, Saudization Status Change, Termination
  1. Reasons: Resignation, End of Contract, Nitaqat Transfer, Retirement
  1. Iqama expiry tracking: IT0185; automate alert 90 days before expiry
  1. Work permit (residency) types: professional, domestic, seasonal — distinct payroll groupings
  1. Contract types: definite-term vs. indefinite-term — EOSB formula differs

2.4 Wage Type Catalog

  1. Basic Salary (SA01): basis for GOSI contribution and EOSB
  1. Housing Allowance (SA10): 25% statutory minimum per Labour Law
  1. Transportation Allowance (SA11), Mobile (SA12), Shift (SA13)
  1. GOSI Employee Contribution (SA60): 10% of GOSI wage (Saudis)
  1. GOSI Employer Contribution (SA61): 11.75% (private sector Saudi employer)
  1. EOSB Provision (SA50): monthly accrual per Royal Decree M/51

2.5 Pay Scale & Basic Pay

  1. Pay Scale Type SA01 (Private Sector), SA02 (ARAMCO Scale), SA03 (Government Linked)
  1. Pay Scale Areas: Riyadh, Jeddah, Eastern Province weighted differentials
  1. GOSI wage ceiling: SAR 45,000/month — configure cap in GOSI contribution PCR
  1. Configure IT0008: SAR currency; link to Nitaqat grade mapping
  1. Indirect valuation for housing allowance minimum (25% of basic)
  1. Vision 2030 allowance: configure project-specific additional wage types

2.6 Benefits

  1. GOSI: occupational hazard 2% (employer-only) on top of pension contributions
  1. Annual Leave: 21 days (year 1–4), 30 days (year 5+) — configure quota escalation rule
  1. Umrah Leave: 10 days unpaid (once per service) — configure absence type
  1. Medical Insurance: mandatory for all expats (Saudi CCHI requirement)
  1. End-of-Service Benefit: 0.5 month/year (years 1–5), 1 month/year (years 5+)
  1. Housing benefit in-kind: configure non-cash benefit for accommodation-provided employees

CHAPTER 3 — EC ↔ ECP Integration

3.1 PTP Connection

  1. Configure RFC destinations for KSA ECP backend
  1. Validate Iqama number field mapping in Compound Employee API
  1. Set employment filter: KSA Legal Entity + KSA Work Location
  1. Configure GOSI registration number as external identifier
  1. Test PTP connectivity from KSA data center
  1. Validate Nitaqat category replication: nationality + job category

3.2 Master Data Mapping

  1. Map EC Nationality → ECP IT0002; critical for GOSI vs non-GOSI routing
  1. Map EC Iqama Number → IT0185 with expiry date
  1. Map EC GOSI Category → ECP GOSI contribution class
  1. Map EC Nitaqat Band → ECP employee subgroup for quota reporting
  1. Map EC Contract Type → IT0016 (definite/indefinite)
  1. Run GOSI wage type mapping check report

3.3 Wage Type Replication

  1. Replicate Basic Salary → IT0008 (GOSI contributory wage)
  1. Replicate Housing/Transport → IT0014 recurring payments
  1. Replicate GOSI deduction → IT0167 (benefit plan deduction)
  1. Configure EOSB monthly provision trigger on IT0008 changes
  1. Replicate Nitaqat-relevant fields for nationalization quota tracking
  1. Validate GOSI wage ceiling capping in ECP vs EC compensation data

3.4 Org Data Mapping

  1. Map EC Legal Entity → ECP Company Code (KSA registered entity)
  1. Map EC Region → PA (SA01-SA07 per ministry of labor region)
  1. Map EC Activity Type → Nitaqat activity classification
  1. Map EC Work Schedule → ECP WSR with Friday-Saturday weekend
  1. Configure Hajj season calendar override for Makkah/Madinah locations
  1. Replicate org changes for Nitaqat reporting: same-day propagation

3.5 Time Data

  1. Annual Leave: 21/30 day escalation rule; replicate from EC time
  1. Hajj Leave: 10 days; configure once-per-service eligibility check
  1. Sick Leave: 30 days full, 60 days 75%, 30 days unpaid per Saudi Labour Law
  1. Maternity: 10 weeks (Article 151); paternity: 1 day
  1. Configure Ramadan reduced hours DWS activation (Article 98)
  1. Map time sheet → overtime: Article 107 (150% beyond 48 hrs/week)

3.6 Advanced Integration

  1. Mudad portal integration: generate MOL SIF file for domestic workers
  1. GOSI API: automated monthly contribution file submission
  1. HRDF (Human Resources Development Fund) levy: configure 1% payroll charge
  1. Nitaqat quarterly reporting file generation from ECP headcount data
  1. Zakat provision: configure monthly accrual posting to finance
  1. Monitor SLG1 for GOSI API failures; alert payroll team immediately

CHAPTER 4 — Payroll Engine & Time Management

4.1 Schema & PCR

  1. Copy KSA payroll schema; configure GOSI PCR (Saudi vs GCC vs Expat branching)
  1. GOSI PCR: employee 10% + employer 11.75% on GOSI wage (max SAR 45,000)
  1. EOSB settlement PCR: 0.5 month (years 1–4), 1 month (year 5+) of last basic salary
  1. HRDF levy PCR: 1% of Saudi national salaries — employer-only deduction
  1. Overtime PCR: 150% for hours beyond 48/week (Article 107)
  1. Annual leave encashment PCR: basic salary ÷ 30 × leave balance on exit

4.2 Payroll Control & Periods

  1. SA_MON: monthly payroll; WPS deadline = 10th of following month
  1. Configure Hijri month-end calculation for Islamic calendar payroll options
  1. Off-cycle: Eid bonus (discretionary), Final Settlement (EOSB payout)
  1. Retroactive accounting: GOSI rate changes require full retro recalculation
  1. Ramadan payroll: reduced hours may affect variable pay calculation
  1. Configure Vision 2030 project payroll areas for joint ventures

4.3 Work Schedules

  1. Standard: 8 hrs/day, 48 hrs/week (Mon–Thu 8hr + Fri 8hr OR Mon–Fri 8hr)
  1. Ramadan: 6 hrs/day, 36 hrs/week (Article 98) — seasonal DWS override
  1. Shift work: 3-shift rotation for manufacturing/petrochemical industries
  1. Weekend: Friday–Saturday rest days
  1. Generate work schedules per SA region holiday calendar
  1. Hajj season: Makkah/Madinah location DWS override during Dhul Hijjah 8–13

4.4 Holiday Calendar

  1. Fixed: Saudi National Day (Sep 23, 2 days), Founding Day (Feb 22)
  1. Islamic floating: Eid Al Fitr (4 days), Eid Al Adha (4 days), Islamic New Year, Prophet's Birthday
  1. Dates announced by Council of Ministers (Hijri moon sighting)
  1. Aramco/petrochemical: additional technical shutdown days per plant calendar
  1. Annual Hijri conversion and government announcement update cycle
  1. Assign SA holiday calendar to all 7 regional PA work schedule rules

4.5 Absence & Quota

  1. Annual Leave: 21 days (yrs 1–4), 30 days (yr 5+) — escalation rule in T559M
  1. Sick Leave: 30 full + 60 at 75% + 30 unpaid — tiered quota types SL01/02/03
  1. Maternity Leave (SA_MAT): 10 weeks paid (Article 151)
  1. Hajj Leave: 10 unpaid days; eligibility = Muslim + 2-year service + not used before
  1. Absence valuation: Annual Leave = basic + housing ÷ 30 per day
  1. Configure GOSI-covered sick leave for work injury absences

4.6 Payroll Posting & FI

  1. Symbolic accounts: Basic Salary, GOSI Employer, HRDF Levy, EOSB Provision
  1. Map → GL accounts per KSA legal entity; configure Zakat provision GL
  1. Mudad/WPS bank file: SARIE (Saudi Payments) format for domestic workers
  1. House banks: Al Rajhi (SA0001), SNB (SA0002), Riyad Bank (SA0003), BSF (SA0004)
  1. GOSI posting: monthly Dr GOSI Expense / Cr GOSI Payable; submit via GOSI portal
  1. HRDF levy: quarterly submission to HRDF portal; configure auto-calculation report

CHAPTER 5 — PCC & Operations

5.1 PCC Configuration

  1. WPS/Mudad validation: all employees have valid IBAN and bank registered with MOL
  1. GOSI contribution KPI: Saudi national count × 10% EE + 11.75% ER reconciliation
  1. Nitaqat KPI: Saudi employee % per activity band; alert if below Green threshold
  1. Action: flag Iqama expiry within 90 days; assign to HR for renewal action
  1. Process: KSA Monthly (Data Lock → GOSI Calc → Nitaqat Check → WPS File → FI Post)
  1. Activity List: Pre-payroll data validation → Calculation → GOSI file → Mudad submit

5.2 Validation Rules

  1. Validate: all Saudi national employees have GOSI deduction
  1. Validate: GOSI wage does not exceed SAR 45,000 ceiling
  1. Validate: net pay ≥ 0 SAR (Saudi Labour Law prohibition on salary deductions)
  1. Validate: HRDF levy calculated for Saudi national headcount only
  1. Nitaqat alert: if Saudi % drops below Nitaqat Green band threshold
  1. WPS compliance: salary paid within 10 days of month-end (MOL requirement)

5.3 Pay Statement

  1. Bilingual payslip: Arabic (official) + English; HRFORMS configuration
  1. Show GOSI deduction separately (Saudis); no deduction line (Expats)
  1. EOSB YTD accrual balance on payslip
  1. Vision 2030 project allowance line (if applicable)
  1. Annual statement: total earnings, GOSI contributions, EOSB balance
  1. ESS access: Absher-authenticated employees view payslip online

5.4 Payroll Unified Configuration

  1. KSA system configured in Payroll Unified Configuration (Admin Center)
  1. Portlets: Pay Statement (Arabic/English), GOSI Summary, EOSB Tracker, Nitaqat Status
  1. Payroll Tasks: GOSI enrollment on hire, Iqama change triggers replication
  1. WPS bank account update: triggers Payroll Data Maintenance Task for approval
  1. Configure Nitaqat quarterly export portlet for Ministry of Labor reporting
  1. RBP: GOSI Officer edit access; Nitaqat Coordinator view/export; Employee pay statement view

5.5 Country-Specific Configuration

  1. GOSI online portal credentials: configure API key storage in credential vault
  1. Mudad integration: generate MOL SIF file format (CSV per Mudad spec v2.0)
  1. HRDF training levy: 1% of Saudi national payroll — configure automatic deduction
  1. Vision 2030 giga-project payroll: configure NEOM, ROSHN, DIRIYAH entities
  1. Nitaqat compliance report: configure quarterly export for MHRSD submission
  1. Zakat year-end: calculate Zakat base from payroll GL balances; provision posting

5.6 Payroll Run Execution

  1. Execute RPCALCSA simulation; validate GOSI and EOSB calculations
  1. PCC monitor: check GOSI exceptions, Iqama expired flags, Nitaqat compliance
  1. Generate Mudad SIF file; validate against MOL portal test environment
  1. Submit GOSI contribution file; capture GOSI reference number in ECP
  1. FI posting after GOSI confirmation; EOSB provision and HRDF levy posting
  1. Archive: 10-year retention per Saudi Labour Law requirements

CHAPTER 6 — Testing, Go-Live & Continuous Improvement

6.1 Unit Testing

  1. GOSI: Saudi national 10%+11.75%; GCC national (voluntary); Expat (nil)
  1. EOSB: 0.5 month × years 1–4 + 1 month × years 5+; verify on 7-year employee
  1. HRDF levy: 1% on Saudi national salaries only; zero for expats
  1. Nitaqat classification: Saudi employee counted in correct activity band
  1. Mudad SIF: validate IBAN, MOL worker ID, salary period format
  1. Ramadan reduced-hours: verify 6-hour DWS activated and pay adjusted

6.2 Integration Testing

  1. EC Hire (Saudi) → GOSI enrollment → ECP deduction → GOSI API submission
  1. Nitaqat: hire Saudi → Nitaqat % increases; hire Expat → % maintained or decreases
  1. Payroll → GOSI file → portal submission → confirmation receipt
  1. Termination → EOSB calculation → final settlement → WPS payment
  1. Parallel: 2-cycle parallel vs legacy HR system; GOSI totals must match exactly
  1. Mudad UAT: submit test SIF to MOL Mudad test environment; zero rejections

6.3 UAT

  1. Payroll Admin: complete KSA monthly cycle; submit GOSI and Mudad files
  1. HR: hire Saudi and Expat employees; verify GOSI routing difference
  1. Finance: validate GOSI posting, HRDF levy, EOSB provision GL accuracy
  1. Employee (Saudi): view Arabic payslip in ESS; verify GOSI deduction
  1. Compliance: GOSI reconciliation report match to portal; Nitaqat band accuracy
  1. Sign-off: MHRSD compliance officer + GOSI account manager + CFO

6.4 Security & Compliance

  1. PDPL (Personal Data Protection Law) KSA: data residency in KSA data center
  1. Iqama/National ID: encrypted at rest; masked in non-production environments
  1. GOSI API key: HSM storage; rotate every 60 days
  1. Mudad portal credentials: MFA-protected; access restricted to WPS role
  1. Nitaqat data: sensitive workforce data; restricted export with audit trail
  1. Annual security audit per CITC KSA cybersecurity regulations

6.5 Go-Live

  1. Cutover: migrate GOSI YTD, EOSB accrual, leave balances, open Iqama records
  1. GOSI pre-registration: ensure all employees registered before first live run
  1. Mudad activation: register company on Mudad; obtain employer code
  1. First live run: submit GOSI file; WPS Mudad file; FI posting
  1. Hypercare: 4-week support; GOSI rejection hotline; Nitaqat monitoring
  1. Handover: GOSI runbook, Mudad SIF guide, Nitaqat quarterly calendar

6.6 AMS & Roadmap

  1. Monthly: GOSI contribution file; Mudad WPS file; HRDF levy tracking
  1. Annual: GOSI rate review; Nitaqat band recalibration (MHRSD announcement)
  1. Vision 2030: monitor new giga-project entities for payroll onboarding
  1. Saudi Labour Law amendments: 30-day implementation SLA for schema changes
  1. AI/ML: Nitaqat compliance prediction; GOSI anomaly detection in PCC
  1. GCC expansion: replicate KSA framework for Bahrain, Kuwait, Oman rollout