Variable Compensation Components
Definition
An organization's compensation policy is defined by the type of compensation it offers to it's employees. Variable compensation components are used to represent compensation that is not fixed, for example, bonus payments, sales commission, performance-based pay.
Structure
A variable compensation component includes the following attributes:
Attribute |
Definition |
Compensation area |
Specifies the area for which the component applies |
Validity Period |
Determines the period for which the component is valid |
Component category |
Determines which infotype record is update |
Wage type |
Determines which wage type is inserted on the infotype record |
Integration
When variable compensation components are applied, the system either updates the employee’s basic pay (0008), or additional payments record (0015).