A compensation plan is a key entity that allows you to calculate the new amount or quantity of a salary component following a review.
Compensation plans are assigned to compensation categories, which help you determine which master data records are updated/generated on activation of infotype Compensation Process (0759) :
Salary Adjustment
If selected, infotype
Basic Pay
(
0008
) is generated accordingly.
Example
Annual merit-based or hourly wage increase.
Regular bonus
If selected, infotype
Additional Payments
(
0015
) is generated accordingly.
Example
Individual performance-based bonus or profit-sharing bonus.
Off-cycle bonus
The off-cycle payments functionality enables you to perform one-time payments without having to wait until the next payroll period. If selected, infotype
Additional Off-Cycle Payments
(
0267
) is generated accordingly.
Example
Spot bonus for outstanding performance.
LTI grant
If selected, infotype
LTI Granting
(
0761
) is generated.
Example
1000 granted stock options.