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  Compensation Areas

A compensation area is a key entity that allows you to group employees belonging to different countries or organizational units but with similar or identical compensation processes. It describes a geographical and/or a logical set of employees and organizational units in which the compensation process is similar or identical. It can be assigned to one or more countries, a country can be assigned to one or more compensation areas; employees can be assigned to more than one compensation area at the same time.

In the SAP System, compensation areas are used in the infotypes Compensation Programs (0758) , Compensation Process (0759) and Compensation Eligibility Override (0760) .

Example

  • Compensation area Worldwide , valid for all employees worldwide who meet the eligibility rules of for example a global stock option plan.

  • Compensation area Germany , valid for all employees based in Germany (for example, the salary review of the German subsidiary).

  • Other compensation areas could refer to Marketing, Sales or other departments.