Oracle HRMS for the Netherlands enables you to derive the number of social insurance (SI) days used in the SI contribution calculations, using the following methods:
Average SI days: This method calculates a constant figure for SI days for each payroll period.
Average SI days with work schedules: This method uses the average constant figure and divides the number of days an employee works by the number of days in the employee's work pattern and multiplies it by the average number of days in a payroll period.
Real SI days: This method uses the employee's work schedule to count the number of days an employee actually worked during a payroll period.
Note: If you enable Law Walvis, the application does not use these methods. Instead, calculations are based on period amounts for SI thresholds and maximum wages.
The average SI days method calculates a constant average days figure for SI days for each payroll period. The average SI days with work schedules method uses the average days value and the employee's work pattern.
To derive the number of SI days in a period according to the average days method, the application uses the global value for average days. To derive the number of SI days in a period according to the average days with work schedules method, the formula performs the following steps:
Checks if the employee has a work pattern attached to their assignment. The application uses the average SI days method if it does not find a work pattern for the employee.
Finds the number of days in the employee's work pattern, and determines which are regular working days.
Determines the average number of days in the period.
Calculates the average SI days: divides the regular working days by the number of days in a work pattern, and multiplies it by the number of days in a period.
Reduces the adjusted average days value by the number of days of unpaid leave that are deemed to be a non-SI absence.
The real SI days method uses the employee's work pattern to determine the number of days an employee has actually worked. A day is counted as an SI day if an employee worked on that day, regardless of how many hours they actually worked. Only unpaid leave days which are not deemed as SI days, reduce the number of real SI days.
You decide the method for deriving the maximum of SI days allowed for each period in the employee's assignment. This maximum is either five days per week for the weeks that the employee works, or the number of week days in the period. Whichever maximum SI days method you choose, the maximum possible number of SI days in the year is 260, 261 or 262, depending on the year.
To derive the number of real SI days in a period according to the real SI days method, the fast formula performs the following steps:
Determines the maximum number of SI days in the payroll period, using one of two methods: either the number of week days (Monday to Friday) in the period, or five days per week that the employee works.
Determines the regular working days in the period. This number indicates how many days an employee actually worked in the period.
Compares the regular working days to the maximum number of SI days, and uses the lowest value.
Reduces the real SI days value by the number of days of unpaid leave, that are deemed to be a non-SI absence.
Note: If both a Standard run and a Process Separate run are processed for an assignment, only the SI days will be shown in the Standard run and will be zero in the Process Standard run, even though the correct value is used in the calculation for the Process Separate run.
The application always calculates two values for the SI days, one value is the real SI days, and the other value is calculated for use in the calculations depending on what day method or override has been specified. The real SI days value is stored in the application as you need it to perform an end of year adjustment for an employee's last payroll period or at the end of a calender year. The application must adjust and recalculate the SI days and the SI contributions according to the real SI days method and the normal cumulative recalculation SI calculation rule at the end of the year, if the real SI days method of calculation has not been used.
If you need to override the calculated or the adjusted figure for the SI days, for example the derived SI days figure for the payroll period is wrong, you can use the employee's assignment to manually enter a figure or a percentage of average or maximum SI days . This figure or percentage overrides the number of SI days for the payroll period.
You can also override the derived real SI days figure, and any manually entered figure or percentage of SI days for the assignment, at the payroll run level using input values on the social insurance element.
Alternatively, you can override real SI days by defining a fast formula titled NL_REAL_INSURANCE_DAYS that returns a parameter Real_Social_Insurance_Days with a two-digit SI days value. The formula can use any of the application database items, and input values are not mandatory.
Caution: When you use a fast formula to override real SI days, ensure that you account for multiple assignment aggregates. The application uses the override value that the fast formula returns in the calculation without making any adjustments for multiple assignments.
The following table describes the override hierarchy for the information you enter in order to determine the number of SI days in a period. Therefore, it shows the top level in the hierarchy as the manual entry at the payroll run level. The application overrides any information that you enter below this level in the hierarchy by the values entered at the payroll run level.
Override Hierarchy
| Position in Hierarchy | Entry Level |
|---|---|
| 1 | Manual entry using input values at the payroll run level. |
| 2 | Manual entry of the override real SI days at the assignment level |
| 3 | Value derived from a user-defined fast formula |
| 4 | Percentage of average or maximum SI days entry of the overriding day method at assignment level. |
| 5 | Derivation method for the SI type at assignment level. |
| 6 | Derivation method for the SI type at SI provider organization level. |
See: Setting Up Social Insurance Days for more information.
For employees that have more than one assignment on the same payroll, the application can aggregate the number of SI days across the assignments.
See: Multiple Assignment Processing for Social Insurance for more information about the impact of multiple assignments.