Payroll deductions
In one sentenceAmounts subtracted from the employee's wage before it is paid, such as the employee's GOSI share, advance installments and days of absence. Every deduction must have a clear basis.
Simply put
The most common deductions: the employee's GOSI share, advance installments, pay for days of unexcused absence, and approved penalties.
The Saudi Labor Law limits deductions from wages to certain cases and limits, so deduct only for a documented reason and after checking the allowed limit.
Worked example
An employee at a contracting business has a total wage of 6,000 SAR, was absent two days without excuse, and has an advance installment of 500 SAR.
Daily wage: 6,000 ÷ 30200
Absence deduction: 2 × 200400
Advance installment500
Total deductions this month900 SAR
Don't confuse it with
Salary advanceAn advance is an amount given beforehand, and its installment is only one type of deduction.
in FullScreen ERP
Payroll in the system shows the deductions for each employee next to the basic and allowances. HR and payroll