Income thresholds
Income thresholds are used to limit the level of pay used to calculate contributions. No contributions are calculated or deducted for pay over and above this limit. These limits are legally set for each social insurance category (HI, PI, UI, NI) as an annual value.
In the SAP System
In the standard system, the income thresholds for each social insurance category are stored as constants in the view V_T511K (payroll constants). These amounts are the annual income thresholds.
The monthly income thresholds are derived from the annual thresholds in the payroll constants view for each SI category during the payroll run and stored in the corresponding secondary wage types for subsequent calculations. You can use modules to calculate the monthly income thresholds in line with legal requirements. The standard formula for calculating the income threshold is:
(Annual income threshold / 360) * (SI days in the payroll period)
If several payroll periods exist, an income threshold is created for each period and SI category.
Secondary wage types
Wage type |
Name |
/300 |
HI income threshold |
/301 |
PI income threshold |
/302 |
UI income threshold |
/304 |
HI income threshold remainder for the current month |
/305 |
PI income threshold remainder for the current month |
/306 |
UI income threshold remainder for the current month |
/307 |
HI income threshold remainder for RHC/BWP for current month |
/308 |
PI income threshold remainder for RHC/BWP for current month |
/309 |
UI income threshold remainder for RHC/BWP for current month |
/30A |
HI income threshold remainder for low-income employees |
/30B |
PI income threshold remainder for low-income employees |
/30C |
UI income threshold remainder for low-income employees |
Due to the coding in table T512W (wage types), the secondary wage types for income thresholds are not stored, and are therefore not available in the payroll log.
Maintain the constants from which you derive the secondary wage types, using the IMG. For more information, see the IMG Payroll Germany in the section Social Insurance
® Recurring Adjustments ® Annual Adjustments ® Payroll Constants ® Assessment Thresholds.You assign the constants, secondary wage types, calculation module in the view V_T5D1T (Provisioning of the SI Assessment Threshold). For more information, see the IMG Payroll Germany in the section Social Insurance
® Recurring Adjustments ® Adjustments for Legal Changes ® Create SI Assessment Thresholds. The calculation of income thresholds meets legal requirements. Therefore, you cannot change them.
See:
Gross Assessment Amounts