Wage Types 

Definition

Payroll and Personnel Administration objects used to differentiate between monetary amounts or time units that are used in different ways to calculate the employee's remuneration. In the SAP System monetary amounts or time units that serve different business purposes, and that are processed in different ways during the payroll run, are delimited from one another using wage types.

The Standard Pay wage type has a different business background to the Union Dues wage type.

You enter the number of hours in the Overtime wage type. During the payroll run the Overtime wage type is processed in a different way to the Monthly Salary wage type.

The Overtime Hours wage type is included in a basis for calculating average values which is different to the Holiday Bonus wage type.

The standard SAP System contains a wage type catalog with a large number of different wage types for different business tasks.

Use

There are two categories of wage types:

Primary wage types include:

Secondary wage types are technical wage types generated by the system in Payroll during the payroll run.

These wage types have different purposes in the SAP system:

The business task of a wage type determines whether it is entered online or is generated by the system, and how it is processed during the payroll run.

The Standard Pay wage type is used to assign the collectively agreed and fixed salary to an employee. It is therefore entered as a dialog wage type in the Basic Pay infotype (0008).

The Total Gross Amount wage type is used to cumulate all wage types that belong to an employee's total gross amount. It is therefore generated as a secondary wage type by the system during the payroll run.

The Standard Pay wage type is included in the Total Gross Amount wage type during the payroll run.

Structure

Fields

A wage type consists of the following fields:

In the case of a standard pay wage type, for example, it contains the amount that the employee should receive.

Contains the valuation basis therefore in the case of an hourly wage type the hourly rate, which should be multiplied by the number of hours performed by the employee, during the payroll run.

In the case of a time wage type, for example, it contains a number of time units such as hours, which, during the payroll run, should be multiplied by the valuation basis that you specified for this time wage type in Customizing.

Depending on the wage type, one of the fields can be filled or entries can be available in two or all of the fields.

Wage Type Characteristics

A wage type is identified by the following characteristics:

Wage Type Groups

Several similar wage types are grouped together in wage type groups

See also:

Assigning Wage Types to Wage Type Groups

Using Wage Types

Valuating Wage Types