Wage type that cumulates and stores information about the earnings and/or working hours of employees for the purpose of further valuation.
You need to specify a compensation wage type if you use a compensation model for pensionable earnings or a compensation model for working hours.
You can also specify a compensation wage type if you want to store values from a technical wage type for further valuation and have not assigned a compensation model for earnings.
The cumulation frequency of the compensation wage type depends on the specification for the associated processing class. If the specification references a cumulation type to determine cumulations, a cumulation type must be assigned to the compensation wage type to determine which data is cumulated and the period over which it is cumulated.
You define cumulation types in the Payroll IMG, in the step Cumulations -> Special Cumulations -> Define Cumulation Types, and assign them to wage types in the step Cumulations -> Define Cumulation Types for Wage Types.