Salary Package Customizing 

Purpose

By performing the Customizing steps in the IMG, you create the basis for which employee salary packages can be created. For example, it is during Customization that you create salary components and also setup eligibility criteria. 

Process Flow

You will find the Salary Packaging IMG structure under: Personnel Administration -> Payroll Data -> Salary Packaging.

Customizing

In the Basic Settings section, set up your compensation areas (according to Compensation Management guidelines).

In the Salary Components section, you define:

·         Salary Components - which are the elements of an employee's compensation package. Basic Salary and Company Car are examples of salary components.

·         Salary Component Groups - by setting up salary component groups, you default salary components based on an employee's organizational assignment.

·         Eligibility Criteria - establishing eligibility criteria allow you to create checks (in addition to Salary Component Groups) to determine if an employee will have a specific salary component defaulted into their salary package. For example, an employee may only be eligible for a certain salary component, once they reach a specific pay scale level.

·         Additional Settings - you maintain additional features for salary packaging. The following steps are only relevant for South Africa:

·         Maintain Company Car Regulation

·         Define Receiver Travel Allowance Rates

·         Result

Now that you have performed the necessary Customizing steps for salary packaging, see Modeling a Salary Package.