Oracle Advanced Benefits


OAB is considered as one of the most complex modules in HRMS. The reason being, its uses a lot of forms and a lot of processes are involved in the entire set of Implementation steps, in comparison to any other module like Payroll / OTL. However we will try learning it with simple words and plenty of examples.

First of all, we need to understand, why do we use OAB, and what are benefits?

What are Benefits?

Benefits are the non-monetary earnings provided by employers to the employees. Earnings like an insurance, a Loan, a company paid car are benefits. Within these set of earnings, Insurance is something that takes the biggest stake, as there will be lot of different types of Insurance that an employer might have to offer.

What's OAB?

Oracle Advanced Benefits is a part Oracle HRMS; the module which is used to handle benefits offered by the enterprise. The advent was with OSB, Oracle standard Benefits. This was able to support an enterprise with linear complexity. However when demand increased for more complex management of Benefits, they came up with OAB.

Why a separate module? Can't Payroll manage the same?

It certainly can, however it's a different world altogether. It’s a fact that, Payroll can still manage elements of Deduction types and then use them at the time of calculation etc. But there is lot more to it, than just having elements. Again, Payroll and Benefits are the two modules that get outsourced a lot, so having them as standalone application definitely helps.

When we say, a lot more to it while talking about OAB, what exactly are we referring to?

OK, let's take a case. We have the enterprise. Now we have to give a certain set of benefits. First we will have to discuss with the insurance providers, and figure out what all Insurance can be availed and what will be the Premium Amount. We decide how much money are we going to put from our pockets as Employer contribution, and how much have to be paid by the employees. Then we give our employees a choice of Insurances. They choose a set of insurances. We give them a confirmation of the elections made. Now, we start deducting the money from their payrolls. They might wish to change their benefits at times, so we will have to enable that too. We will have to communicate to the Insurance providers and send them a list of people who are availing the Insurance. So a lot of job isn't it? That's the reason why they have created a whole separate module. It does it all.


This chapter talks about:

  • Oracle Advanced Benefits and its Underlying design
  • Different components of a Benefits Design
  • Benefits Structure and its elements
  • Eligibility and Electability
  • Life Events and Enrollments
  • Using OAB to implement benefits related regulations

Learning Outcomes

After reading this chapter, one should be able to:

  • Understand the concept of OAB and OSB
  • Create and use a benefit structure
  • Set up Eligibility and Enrollment rules
  • Navigate and use the Benefits service centre
  • Setup and use federal regulations like HIPAA and COBRA