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Payroll Thailand: Annual Wage Supplement 

Use

Annual Wage Supplement (AWS) is a new function available from this release onwards. AWS represents a single annual payment to the employees. It is supplementary to the total amount of annual wages earned by them and is an added bonus. AWS is also known as the 13th month salary that most organizations pay their employees.

The AWS amount is calculated using the calculation base you choose and the AWS factor. The calculation base may be the employee's basic salary or the average basic salary. The system calculates the AWS amount by multiplying the calculation base with the AWS factor. For example, you can specify that a AWS amount of three times the basic salary is to be calculated for all your employees. That is, if an employee earns a monthly basic salary of 5000 THB, then the employee receives a AWS amount of 15,000 THB as an added bonus.

You can specify a higher limit and lower limit for the AWS amount to be paid. You can also specify a fixed amount that you want to pay all your employees, irrespective of the salary or wages earned by them.

The AWS amount can be paid to the employees in a single period or over multiple periods and each payment can be included in a regular run or an off-cycle payroll run.

You can also calculate the AWS amount for your ex-employees who are terminated during the AWS period by specifying special calculation rules.

You can use this function to calculate the actual amount using various proration rules. For example, you can prorate the payment based on the actual number of months, working days or calendar days. You can also specify whether the probation period has to be considered to calculate the prorated AWS amount.

Effects on Customizing

To activate the AWS function, you must create AWS wage types and proration types in the Annual Wage Supplement section of the Payroll Thailand Implementation Guide (IMG).

See also

For more information on AWS, see Help -> SAP Library -> Human Resources -> Payroll (PY) -> PY-TH Payroll Thailand -> PY-TH Gross Payroll -> Annual Wage Supplement.