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If your entity will use this rate breakdown only to calculate the accumulated amount of EoSB for employees with the selected employment contract type, select the Use for Provision Calculation Only option. You need to clear the check box for this option if your entity will use this rate breakdown for calculation of the benefit amount to be paid to an employee with this contract type on service termination of the type selected in the Termination Type field.
The If the rate breakdown is intended for calculation of the benefit final pay, you can use the Start Calculation After (Months) field is required only if the Use for Provision Calculation Only option is selected. You can use the field to enter to specify the number of months after employment start (N) during which the accumulated benefit amount (provision amount ) is not calculated for employees because if employees worked less than N months, these since the start of employment during which, in accordance with local legislation, employees are not entitled to the any gratuity (benefit amount). However, in If the employment month next to the specified in this field, that is, (N+1), the accrued amount will be calculated as follows:Daily_Salary*R_(N+1)*(N+1)/12, where R_(N+1) is the rate in the interval matching terminates after this number of months has passed, the application will calculate the final benefit amount based on the rate breakdown (below on the form) and its usage option (that is, on whether the Use Interval-Specific Rate for Each Interval option is selected or not selected).
If the rate breakdown is intended for accumulation of benefit funds, use the Start Calculation After (Months) field to specify the number of months since the start of employment during which you do not want to accumulate funds for new employees. If employment continues beyond this number of months, in the (N+1)-th month the application will add the missing amount corresponding to the (N+1) months of employmentto the benefit provision.
For example, if accumulation of benefit amounts must start after 12 months of employment, during this interval, no accumulation is done. Using the data from the above screenshot, at the end of 13-th month of employment, the amount of equal to Daily Salary*(21/12)*13 will be added at once to the balance of the EoSB Provision GL account. Starting the (N+2)-th month, the amount equal to Daily_Salary *21/12 will be added monthly to the accumulated amount until the the application will switch to another interval.
The "End-of-Service Provision Rate (create)" form. The Termination usage
In the Termination Type field (which is available if the Use for Provision Calculation Only check box is cleared), select the type of termination to which this end-of-service benefit rate breakdown is applicable; you can select from the following options:
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According to the labor law, the end-of-service termination rate depends on the length of service of the employee. So, in the lower area of the form, you can specify the intervals in months and specify the number of granted paid days per year of service for each interval (EoSB Rate).
If the Use Interval-Specific Rate for Each Interval option is selected, the total length of service will be splitted into the defined intervals, and the number of granted paid days will be calculated for each interval separately based on this interval's specific rate per year. For example, if the employee quits after 65 months of service, according to the data on the above screenshot, the number of paid days will be calculated as follows:
36*7/12 + (60-36)*14/12 + 5*21/12 = 53.75.
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