Fixed Compensation Components

Definition

An organization's compensation policy is defined by the type of compensation it offers to it's employees. Fixed compensation components are used to represent compensation that affects the employee's basic pay in the SAP system.

Structure

A fixed compensation component includes the following attributes:

Attribute

Definition

Compensation area

Specifies the area for which the component applies

Validity Period

Determines the period for which the component is valid

Integration

When fixed compensation components are applied, the system updates an employee’s basic pay infotype record (0008).