Objective
SAP distinguishes between the two remuneration types, pay scale and salary.
In the Basic Pay infotype, you can set the remuneration type to pay scale or salary using the Change Remuneration Type option in the Edit menu.
To evaluate wage types indirectly, you must build a pay scale structure (Table T510). This is because the system also uses this pay scale structure to evaluate wage types indirectly if you use a salary structure.
The pay scale structure includes information on regional or geographic aspects as well as data on specific industries, times, and finances. However, you still need to take account of the differences between pay scale employees and salaried employees.
You assign an employee to a remuneration structure when you create the basic pay in the Basic Pay infotype (0008).
Then, you store an employee’s pay scale data in the Basic Pay infotype (0008).
Even if you do not have collective agreement provisions at your company and employees negotiate their pay when you hire them, you still have to define fields in the Basic Pay infotype.
Since these fields are required entry fields in infotype 0008, you have to make at least one entry in the relevant table.
In your company, the employee’s pay is regulated by a number of collective agreement provisions. The differences in pay among employees are based on location or pay scale areas. The collective agreement provisions determine how much you pay the employees.
You use the pay scale groups and pay scale levels to map the different payments in the system. The IMG steps for setting up the remuneration structure in the SAP system appear on the right side of the figure.
The grouping of employee subgroups for collective agreement provisions allows you to assign different employees to different pay scale groups. You can use the Customizing functions to group employee subgroups.
The most important function of the employee subgroup grouping for collective agreement provisions is to define pay scale groups and pay scale levels within the grouping for each pay scale type and pay scale area.