Minimum Net Pay 

Purpose

This component sets a minimum wage for the employees, while processing payroll.

Minimum net processing supports only non-statutory deductions.

Implementation Considerations

The deductions, which need to be considered for minimum net processing, should be configured for Priorities and Arrears. You can do this in the IMG under Payroll India ® Deductions ® Arrears and Priorities .

Features

·        The minimum wage for an employee can be configured in two ways:

¡        As a percentage of a particular wage component - You can maintain the percentage in the Minimum Net Pay - Percentage constant (MNPPR) of table view Payroll Constants (V_T511K). By default the particular wage component is taken as the Total gross amount wage type (/101).

¡        As a fixed amount - You can maintain this fixed amount in the Minimum net pay - Fixed Amount constant (MNPAM) of table view Payroll Constants (V_T511P).

You must configure the Minimum Net Pay - Percentage constant (MNPPR) and/or the Minimum net pay - Fixed Amount constant (MNPAM) in the IMG under Payroll India ® Deductions ® Minimum Net Pay ® Maintain Value for Determination of Minimum Wage.

If you maintain both of the above mentioned constants, the amount in the Minimum net pay - Fixed Amount constant (MNPAM) is taken as the minimum wage.

·        You have been provided with a Business Add-In (Add-In), HR_IN_MINIMUM_NET. You can use this Add-In to calculate the minimum wage of an employee according to your own requirements, that differ from the standards. For example, you want to configure the minimum wage as a percentage of a particular wage component. In this case, you can set the particular wage component through this Add-In.

You must configure the Business Add-In, HR_IN_MINIMUM_NET , through the IMG under Payroll India ® Deductions ® Minimum Net Pay ® Add-In: Minimum Net Pay Value.

See also:

Arrears Processing for Deductions