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Define Values for Allowances

In this step of the IMG, you define default values for allowances. You can assign allowances to a position if you want to map the special requirements of the position in question, and any additional personnel expenditure incurred as a result of these requirements.

Note:

If HR Funds and Position Management is not integrated with Funds Management, you will first need to define expenditure types so that you can assign allowances to positions.

You must define a default value/pay scale group combination for every allowance that you want to assign to a position.

You can define the default value for an allowance either by entering a monetary amount, or by specifying a percentage value (in which case, the system will calculate the amount automatically).

If you specify a percentage value, the system calculates the default value of the allowance by multiplying the default value of the pay scale group by this percentage value.

The advantage of specifying a percentage value is that, if the default value of the pay scale group increases, the default value of the allowance is increased automatically.

Note:

Regardless of whether you specified a monetary amount or a percentage value, you can always overwrite the default allowance value proposed by the system when you assign an allowance to a position.

Example

You want to assign a 'General Allowance' and a 'Night-Shift Allowance' to specific positions.

The 'Night-Shift Allowance' is 250 USD per month for all pay scale groups. The 'General Allowance' also applies to all pay scale groups, and is 10% of the default value defined for the pay scale group in question.

Requirements

You must have defined expenditure types in the IMG step Define Expenditure Types.

Activities

You need to create a new entry for every default value. To do this, proceed as follows:

1. Define a work area by specifying an expenditure type, country grouping, pay scale type, pay scale area and CAP grouping.
2. Choose New entries.
3. In the Pay scale group field, specify which pay scale group you want to define a default value for.
4. If the system has not defaulted a value in the Expenditure type field, enter an expenditure type now.
5. Enter a validity period.
6. In the Amount field, enter the default value. Then, in the Currency key field, specify the currency key to be used for this default value.
7. In the Time base field, enter the time period to which the default value amount applies.
8. If you want the system to calculate the default value amount of the allowance on the basis of the default value amount of the pay scale group, enter a percentage value in the Percentage field.
If you enter a percentage, do not enter anything in the Amount Currency or Time base fields.
9. Choose Save.