EASalaryCostCalculator

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Overview

Calculates the gross salary required to achieve a specific net salary amount, considering taxes and insurance deductions. Uses iterative calculations to determine the exact gross amount that, after all deductions, results in the desired net salary.

When This Action Runs

Manual execution for salary planning and budgeting purposes. Typically used when hiring employees with agreed net salaries, or when calculating total employment costs for budgeting.

How It Works

  1. Reads insurance settings - Retrieves current insurance rates and limits based on Description1 field
  2. Sets insurance values - Applies appropriate insurance amounts (maximum, minimum, or zero)
  3. Initializes calculations - Sets up tax formula, insurance calculators, and starting values
  4. Iterative calculation loop - Repeatedly calculates gross to net until target is reached:
    • Adds current tax and insurance to get new gross estimate
    • Calculates taxable amount (gross - exemptions - insurance)
    • Computes tax on taxable amount
    • Calculates resulting net (gross - tax - insurance)
  5. Checks convergence - Continues until difference is within allowed tolerance or max trials reached
  6. Stores results - Saves calculated gross salary and component breakdowns

Parameters

Parameter 1: Tax Formula Code (Required) - Code of the tax calculation formula to use

Parameter 2: Max Trials Count (Optional) - Maximum iterations before stopping (default: 150)

Parameter 3: Allowed Diff (Optional) - Acceptable difference from target net salary (default: 0.00001)

Field Usage

  • N1 - Target net salary (input)
  • N2 - Fixed insurance amount (input/calculated)
  • N3 - Variable insurance amount (input/calculated)
  • N4 - Tax exempted amount (input)
  • N5 - Calculated gross salary (output)
  • Description1 - Insurance type selector ("2" for max, "3" for min, "4" for zero)
  • Description2 - Employee insurance amount (output)
  • Description3 - Company insurance amount (output)
  • Description4 - Tax amount (output)

Database Tables Affected

  • ComponentCalcFormula - Reads tax calculation formula (read-only)
  • EmpInsuranceInfo - Retrieves insurance configuration limits
  • BaseEntity - Updates calculation results in numeric and text fields

Important Warnings

⚠️ Insurance Type Selection

  • Description1 starting with "2" uses maximum insurance limits
  • Description1 starting with "3" uses minimum insurance limits
  • Description1 starting with "4" sets insurance to zero
  • Invalid Description1 values may cause incorrect calculations

⚠️ Iterative Convergence

  • Uses trial-and-error approach to find correct gross salary
  • May not converge within maximum trials for complex scenarios
  • Increase max trials parameter if convergence fails

⚠️ Precision Settings

  • All calculations rounded to 2 decimal places
  • Very small allowed differences may never converge due to rounding
  • Default allowed difference (0.00001) is very precise

⚠️ Required Input Fields

  • N1 (target net salary) must be populated
  • N4 (tax exemptions) should be set appropriately
  • Missing required fields cause calculation errors

⚠️ Tax Formula Dependency

  • Tax formula code must exist in the system
  • Invalid formula codes cause calculation failures
  • Formula changes affect all calculations

⚠️ Insurance Calculation Rules

  • Employee insurance calculated based on N2 and N3 values
  • Company insurance calculated separately
  • Both insurance types included in cost calculations

⚠️ Performance Considerations

  • Each iteration performs full tax and insurance calculations
  • Complex tax formulas increase calculation time
  • Large max trials values may cause delays

⚠️ Result Interpretation

  • N5 contains the gross salary needed
  • Description fields contain component breakdowns
  • Total cost = N5 + company insurance (Description3)

⚠️ Business Use Cases

  • Budget planning for new hires
  • Converting net salary agreements to gross
  • Calculating total employment costs
  • Comparing costs across different insurance scenarios

⚠️ Calculation Assumptions

  • Uses current date for insurance rate lookups
  • Assumes single employee calculation (no family)
  • Tax exemptions must be provided separately

⚠️ Egypt Tax Specific

  • Uses Egyptian tax calculation rules
  • Designed for Egyptian insurance system
  • May not be applicable for other countries

Module: hr

Full Class Name: com.namasoft.modules.humanresource.utils.actions.EASalaryCostCalculator