Annual Wage Supplement (AWS) 

Purpose

The Annual Wage Supplement (AWS) is treated similarly to a bonus payment dependent on an employee's basic salary.

Prerequisites

The wage types that are to be used as AWS payments must be eligible for entry in the Infotypes Additional Payments (0015) and Additional Payments Off-Cycle (0267), otherwise they cannot be stored in these infotypes.

You can make the corresponding settings in the Implementation Guide of the Payroll Malaysia component. Choose AWS ® Wage types ® Check entry permissibility of wage types.

All wage types relevant to an employee's AWS calculation must be assigned a corresponding specification in evaluation class 10 (BS-Wage type allocation for AWS reporting).

You can make this assignment in the Implementation Guide of the Payroll Malaysia component. Choose Annual Wage Supplement ® Wage types ® Check wage types.

Process Flow

To calculate the AWS for an employee, you run a program that carries out all the necessary calculations and creates the AWS payments as special wage types. These must then be stored in the Infotypes Additional Payments (0015) and Additional Payments Off-Cycle (0267), depending on whether payment is to be effected in a regular or an off-cycle payroll run.

In order to import the AWS wage types into the infotypes mentioned above, a batch input folder is created during AWS calculation.

After the AWS amount has been calculated, payment is effected depending on which infotype the results are stored in.

It is possible to split an employee's AWS into several payments that are made in different periods. This allows for a distribution of AWS among multiple regular payroll runs as well as for a seperation into multiple off-cycle and regular payroll runs.

The AWS amount that an employee is to receive 1000 MYR. AWS is calculated on December 10th, the next regular payroll run is performed on December 28 th. 400 MYR are to be paid immediately, 600 MYR in the regular payroll run. This means that 400 MYR are entered in the Infotype 0267, while 600 MYR stored in Infotype 0015.

When off-cycle payroll accounting is performed on December 10th, only the amount stored in Infotype 0267 is processed, and the appropriate payment is made. When the regular payroll run is executed on December 28 th, the 600 MYR stored in Infotype 0015 are processed and paid along with the employee's regular salary.