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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

Primary wage types include:

Dialog wage types that you enter when maintaining master data in the infotypes.
  • Time wage types that the system forms using time information or that you enter online.
    • Secondary Wage Types

    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:

    • A wage type is typically evaluated with a monetary amount that should be paid out to the employee or that they should withhold.
    • It can also be used to cumulate several amounts for statistical evaluation.
    • It can be used by the system in Payroll to temporarily store interim results, and to move from one step to the next.

    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:

    • AMT (Amount)

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

    • RTE (Rate)

    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.
    • NUM (Number)

    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:

    • Characteristics that control the entry of the wage type on-line, for example.
      • Can data be entered on-line for an infotype, personnel area, or employee subgroup?
      • Is a wage type regarded as a payment or a deduction?
      • Direct or indirect valuation?
      • Can the amount be overwritten on-line when an indirect valuation is performed?
      • Rounding?
    • Characteristics that determine how the wage type will be processed during the payroll run or the evaluation of the payroll results.
    Processing Class
  • Evaluation Class
  • Cumulation wage type, in which the wage type should be included
  • Basis for calculating average value, in which the wage type should be included
  • Valuation basis, in which the wage type should be included
  • 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