GOSI Contribution Calculation: Housing Base

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Created on April 08, 2015

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Table of content
1 GOSI Contribution Calculation: Housing Base

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1 GOSI Contribution Calculation: Housing Base

The GOSI-applicable earnings are stored in /370, which is the sum of the GOSI calculated earnings (/372) and the GOSI-calculated housing base (/660).
This topic explains how the value of /660 is determined.
Depending on the circumstances of an employee, an employees housing allowance or, more commonly, an employee's company-provided housing, can be a
factor in determining the employees GOSI-applicable earnings. The housing-related part of an employees GOSI-applicable earnings is called the housing
base (HB).

Company-Provided Housing
The following figure shows how company-provided housing affects the calculation of housing base of an employees GOSI-applicable earnings:

How the System Considers Company-Provided Housing in the Calculation of GOSI-Applicable Earnings

The system checks whether the Housing Allowance auto (M710) wage type is registered in the Recurring Payments/Deductions (0014) infotype and proceeds in
the following way:
If the Housing Allowance auto (M710) wage type is registered in the Recurring Payments/Deductions (0014) infotype, the system checks the marital status
of the employee in the Personal Data (0002) infotype.
If the employee is single, the system calculates the housing base as follows:
Housing base equals (Basic Monthly Salary multiplied by the value of constant HOUSS) divided by the value of constant SIAP2.
If the employee is married, the system checks the Personal Data (0002) infotype and determines whether the Family Resides in Saudi Arabia

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checkbox is selected.
If the Family Resides in Saudi Arabia checkbox is not selected, the system calculates the housing base as follows:
Housing base equals (Basic Monthly Salary multiplied by the value of constant HOUSS) divided by the value of constant SIAP2.
If the Family Resides in Saudi Arabia checkbox is selected, the system calculates the housing base as follows:
Housing base equals (Basic Monthly Salary multiplied by the value of constant HOUSM) divided by the value of constant SIAP2.
If the Housing Allowance auto (M710) wage type is not registered in the Recurring Payments/Deductions (0014) infotype, the system checks the Personal
Data (0002) infotype to see whether the No Company Housing checkbox is selected. The system then proceeds as follows:
If the No Company Housing checkbox is selected, the system does not include a housing base in the calculation of GOSI-applicable earnings.
If the No Company Housing checkbox is not selected, the housing base is calculated as follows:
Housing base equals (Basic Monthly Salary multiplied by the value of constant SIAP1) divided by the value of constant SIAP2.
The final calculated housing value is stored in /660.

Housing Allowance Paid as Cash to Employee

In accordance with Saudi Labor Law (based on the legal change announced in February 2015, in SAP Note 2128152
amount to the employee as a housing allowance, the following process occurs:

), if the organization pays a cash

1. The Housing Allowance Advised (M715) wage type is registered in the Recurring Payments/Deductions (0014) infotype.
2. During the housing allowance calculation, in rule SAV9, the system calculates the minimum housing allowance stipulated by GOSI using constant HOUMN.
3. The system then compares the cash value in M715 with the minimum housing allowance and uses the larger of the two, by moving the value to /660.

More Information
GOSI Contribution Calculation: Overview

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