Development/Procurement of a Payroll System

Background

Medical Aid for Palestinians (MAP) works for a future where every Palestinian has access to a comprehensive, effective and locally led system of healthcare, and the full realisation of their rights to health and dignity. In line with our commitment to operational efficiency, transparency, and compliance with international and local standards, MAP Palestine Office is seeking to procure or develop a reliable, secure, and compliant Payroll System to manage employee compensation ensure seamless integration of employee records, salary processing, compliance with local labor laws, and financial reporting.

2. Objective

The objective is to secure and implement an automated payroll system that ensures accurate, timely, and transparent salary processing, aligned with local labor laws, donor compliance requirements, and MAP’s internal financial procedures and HR policies.

The system is able to :

• Maintain accurate and confidential payroll records 

• Ensure seamless data flow and alignment of processes in co-ordination with HR compliant with financial reporting 

• The payroll system is enabled to support a multi-currency payroll process, allowing payments in both ILS and USD.

• Reduce manual workload and minimize any payroll discrepancies

• Provide excellent customer service to employees regarding any payroll – related enquiries 

• Provide scope to make any improvements to payroll processes and systems. 

3. Users

The payroll system must support a minimum of three user access accounts, with the flexibility to reassign or change users based on operational needs. The access levels shall include:

• One (1) Administrator User with full system access and management permissions.

• Two (2) End Users with restricted access, limited to functions necessary for their roles (e.g., data entry, report generation).

The system should allow the organization to manage and modify user roles and permissions as required.

4. Scope of Work

The selected provider or developer will be responsible for delivering a payroll system with the following key features and functions. The scope of responsibility includes :

a. Employee Database Management
- Centralized and secure employee records.
- Customizable fields for: personal, contractual, and financial information (department, location, salary grade, part time/ temporary/permanent contract, sick/annual pay, public holidays)

b. Payroll Processing
- Automatic salary calculation based on contract terms, working days, absences, deductions, and allowances.

-Integration of income tax, social security, pension, and other statutory deductions in accordance with Palestinian labor law.

-Processing various types of pay, including regular salaries, hourly wages, and termination pay (covering both gross and net amounts, applicable taxes, and benefits).

- Managing and processing employee benefit deductions such as pensions, health insurance, and other applicable contributions.

c. Leave and Attendance Integration
- Ability to link with existing attendance or HR systems.
- Auto-adjustment for unpaid leave, holidays, and other absences.

d. Reporting and Documentation
- Payslips generation (print and digital).
- Payroll summary reports.
- Audit trail and history log.
- Donor-specific payroll reports as needed.

- Include documentation fields (e.g.: ID, work permits, etc)

- Ensure reports can be exported in various formats (PDF, Excel, etc.) for easy sharing.

- Deductions report

- Real-time dashboards, KPI tracking and automated analytics.

- Reconciling payroll accounts (under/ overpayments).

- Providing employees with access to their pay information (e.g., payslips, in UK we have  P45 (when someone leaves) and P60s;

e. Compliance & Security

- Data Security and Encryption: User data must be encrypted at rest and in transit.

- Backup: Backup data centers to protect against regional disruptions.
- Data Compliance: Ensure full compliance with UK GDPR, oPt regulations and MAP’s data protection policies to protect employee data.
- Access Control: Role-based access to ensure only authorised staff can view or modify specific records (e.g.: different access for HR, Finance, line managers, etc.)

- Implementation of secure login (multi-factor authentication, session timeout, encryption)

- Adhering to all relevant tax laws as per local labour laws

f. Integration Capabilities
- Compatibility with MAP’s accounting and finance systems: Xledger data imports.
- Export features (Excel, PDF, CSV).

g. Data Migration 

-Migrate and validate historical data from Excel/ physical records into a cloud-based centralised database. 

5. Deliverables

1. Fully functional payroll system (on-premises or cloud-based).
2. User manual and system documentation/ training materials for finance and HR employees.
3. Staff training sessions (Finance and HR teams).

4. Testing and UAT (User Acceptance Testing)

5. 12-month technical support and maintenance (with extension options).
6. Regular updates and troubleshooting support.

7. The service provider is required to submit a comprehensive project plan outlining the phases, timelines, deliverables and responsible personnel for the implementation of the payroll system (Discovery Phase, Analysis/Design Phase, Development/Testing Phase, Training/Deploy Phase)

A Post-Implementation Plan detailing the post-go-live support, system updates and maintenance planning, the approach for recording and resolving system or operational issues (issue log and troubleshooting), providing user support during the stabilization period, monitoring system performance to ensure accuracy and compliance, collecting user feedback, and conducting a review meeting with stakeholders to evaluate the system rollout and identify any required follow-up actions. The plan should include details on support levels, response times, escalation procedures, and regular maintenance activities.

8. Alerts on expiring contracts?

9. Need to be used offline? And automated sync when online?

10. Scalability for future expansion or more users

11. The application must be hosted on a reliable and scalable cloud platform (e.g., Azure)  For regulatory reasons, this should be hosted within the UK.

12. Suppliers to provide a high-level overview of the proposed solution flow, solution architecture, network diagram.

13. Performance Testing

14. Multi-platform solution required to be compatible with MAP hardware that the new system is going to be used on e.g. laptops (Windows) or mobile phones and tablets

6. Timeline

Milestone

Target Date

Request for Proposal (RFP) Published

Deadline for Submissions

Evaluation of all supplier proposals

Communications to shortlisted suppliers

Presentation from the chosen suppliers

Final negotiation with selected 

suppliers

Supplier Selection/ Contract Finalisation

Contract Signoff with selected supplier

Project Start Date

Project Close and Transition to Operations

Post Go-live support and maintenance period

- System Delivery and Training: Within 6-8 weeks from contract signing.

8. Required Qualifications of Vendor

- Proven experience in developing or providing payroll systems in the NGO or international development sector.
- Strong understanding of local labor laws and tax regulations in Palestine.
- Demonstrated capacity for technical support and customization.
- References from at least two NGOs or similar organizations.

9. Submission Requirements

Interested vendors must submit:
- Company profile and relevant experience.
- Proposed technical solution.
- Implementation timeline.
- Detailed budget and cost breakdown including software, training and maintenance/support.
- Contact information for two references.
- Support and maintenance plan

Proposals and inquiries should be submitted to: [email protected]