Statutory localisation
WPS, GOSI, gratuity and end-of-service provisions: what Oracle Fusion HCM teams must validate
In the Gulf, these four are where a technically clean implementation most often goes wrong without raising a flag.
Each of the four below can be configured, tested and running without a single error in Fusion, and still be wrong. The common cause is the same: the configuration follows a standard template instead of the employment contracts it is meant to implement.
1. WPS files: classification, not just validation
A WPS file can pass every structural check and still place a pay component in the wrong category. Validate: reconcile each file to the payroll register component by component, and confirm each component’s classification against its contract or policy source.
2. GOSI contribution base after restructures
The contribution base depends on which components are included. A salary restructure changes those components, and the base does not recalculate itself. Validate: after every restructure, recompute the base for a sample of affected employees and compare it with what payroll used.
3. Gratuity base: what the contract makes eligible
A gratuity base that leaves out an allowance the contract makes eligible does not throw an error. Payroll runs and the payslip looks right. Validate: list, per contract type, which allowances are eligible, then compare that list with the elements that actually feed the base.
4. End-of-service provision to the balance sheet
If the base is understated, the provision is understated every month until someone leaves and the accrual does not cover the settlement. Validate: reconcile the provision to the balance sheet monthly, and recompute it independently for a sample of long-tenure employees.
Diagnostic checklist
- Every WPS file reconciles to the payroll register by component
- Each component’s WPS classification has a documented source
- GOSI bases are recomputed after every restructure
- Gratuity-eligible allowances are listed per contract type
- Elements feeding the gratuity base match that list
- The end-of-service provision reconciles to the balance sheet monthly
- Leave accrual follows contractual entitlement, not the calendar
Frequently asked
Which GCC countries do you deliver?
The UAE and Saudi Arabia. For other GCC countries we tell you on the first call what we have and have not done.
Can you review our existing WPS and GOSI set-up?
Yes. It is part of the Payroll and Statutory scope of the Health Check.