Define the salary components

In payroll systems, salary components are the core element upon which accounting and regulatory processes are based.

This update to define employee payroll components will make the Jisr system more efficient, flexible, and compliant with local and international standards, enhancing customer experience and reducing errors and operational risks.

The Problem and the Need for a Solution

Currently, customers face significant challenges due to the lack of standardization of salary components, such as:

• Multiple names for the same component: Housing allowance may be called "Housing Allowance" in one company and "Accommodation Allowance" in another, leading to data fragmentation.
• Compliance Risks: Salary components affect the calculation of taxes, social insurance contributions (GOSI), and Wage Protection System (WPS) requirements, and any error may cost the company financial penalties.
• Reporting Difficulties: Companies find it difficult to analyze the costs of components such as housing allowances due to different classifications.
• Lack of Comparability: It is difficult to conduct salary benchmark comparisons due to the lack of standardization of data.

Solution: Standardization of Payroll Components

The new Payroll Templates and Standardized Payroll Components feature has been launched, transforming the way you manage payroll. This feature aims to:

• Provide a predefined library of payroll types: Fully compliant with Saudi regulations, ensuring full compliance.
• Reduce payroll preparation time: Saving you time and effort.
• Improve Reporting Accuracy: Provide clarity on spending data, such as housing costs.
• Enable Payroll Comparison and Analytics: Provide valuable insights to help you make informed decisions.

Benefits for Clients:

• Reduced Errors: Standardization of components reduces the likelihood of payroll errors.
• Improved Compliance: Ensures payroll complies with GOSI, WPS, and Saudi regulations.
• More Accurate Reporting: Aggregates data uniformly for better cost analysis.
• Faster Setup: Reduces payroll preparation time.
• Paving the way for future features such as Payroll Comparison and Spending Analysis.