This process describes how to maintain data required for assigning the information required by the Brazilian legislation to each employee, such as an option for the Severance Premium Reserve Fund (FGTS, Fundo de Garantia do Tempo de Serviço) and retirement indicator, in order to check the contribution with the National Institute of Social Security (INSS, Instituto Nacional de Seguro Social).

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When the system is customized, all required and Employment Contract Component parameters must be carried out.

Legal information about employment contracts is maintained by means of infotype 0016 (Contract Components).

Storing data in this infotype is mandatory, as accumulated legal information is used in payroll.

The maintenance of this infotype requires the following fields to be filled in, according to detailed information in the description of "Infotype 0398 - Contract Components: Additional Information":

• Level of instruction
• Employment relationship
• Worker’s category indicator
• Temporary contribution on financial transactions (CPMF)
• Retired employee indicator
• Employee’s option for FGTS
• Date of option for FGTS by employee
• FGTS deposit percentage

After all fields have been filled, all data is stored in the infotype, which provides the system with the foundation required for assessing employment contracts according to the employee’s legal rights.