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Define Factors for Length of Service in Company

In this IMG activity, you define the factors dependent on the working time for the valuation of special payments.

Assign each special payment a modifier for factors dependent on the working time. The same factors apply to special payments with the same modifiers assigned to them.

These factors allow the valuation of special payments to vary depending on the employee's working time.

For each factor, you must define the working time by specifying the applicable number of periods.

You must also determine one or two factors to change the amount of the special payment.

You access these factors in your personnel calculation rule for the valuation of special payments with the STAB operation. This allows you to use the values based on the calculation of the total amount.

Example

Your company plans to pay a premium in the form of an additional period's salary based on the length of service in the company. Employees that have been in the company for up to 5 years receive 50%, those that have been in the company between 5 and 10 years receive 75%, and employees who have been with the company for over 10 years receive 100%.

Make three entries:
Length of service Factor1
000 0.5
060 0.75
120 1.0

Enter this factor in the valuation calculation rule using the STAB operation, and multiply the amount of the special payment calculated.

Requirements

All special payment wage types must be defined.

Activities

1. For every special payment, assign a modifier to factors dependent on the length of service in the company. Assign special payments with the same modifier to the same factor.
2. Go to the Factors dependent on length of service in company view by double clicking on a modifier.
3. Enter the length of service in periods, starting with the period as of which the factor should apply for an employee.
4. Define the validity period of each entry.
5. Enter one or two factors that apply as of this level of seniority.

Further Notes

These details apply to all employees entitled to special payment.