Creating and Assigning a Pay Scale

Objective

After completing this lesson, you will be able to maintain pay scales to manage employee remuneration

Pay Scale Type and Pay Scale Area

Pay Scale Type

In the SAP system, pay scale types are two-character keys defined for each region. You can maintain pay scale types in Customizing.

Pay Scale Area

The pay scale area represents the geographical region to which a pay scale or a collective agreement applies. In the SAP system, pay scale areas are two-character keys that are defined for each region. You can maintain pay scale areas in Customizing.

How to Create and Assign a Pay Scale Area

DemoStart Demo

Use the project IMG to assign pay scale type and pay scale area.

Steps

Create a pay scale area to be used exclusively for your own personnel subarea. Create a pay scale area 70+## (for example, 71 for group 01), and name it Production area## (## refers to a subgroup).
1. In the IMG, choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Check Pay Scale Area .
2. Select New entries .
3. Enter 70+## for the pay scale area and Production area## for the pay scale area text.
In the appropriate Customizing table, assign the pay scale type and the pay scale area to your personnel subarea in the personnel area PA##.
1. In the IMG, choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Check Assignment of Pay Scale Structure to Enterprise Structure .
2. Change your entry as follows: Pers.area: PA## , Personnel subarea: 0004 , P.scale area 70+## , P.scale type 90 .
3. Save your data and return to the IMG.

Create and Assign a Pay Scale Area

ExerciseStart Exercise

Business Example

Your company has recently hired new employees. You need to create and assign a pay scale type and a pay scale area to your production employees in the personnel area PA## and the personnel subarea Production 0006.

Use the Project IMG S4HR35 to create and assign pay scale type and pay scale area.

Steps

Create a pay scale area to be used exclusively for your own personnel subarea. Create a pay scale area 70+## (for example, 71 for group 01), and name it Production area## (## refers to a subgroup).
1. In the IMG, choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Check Pay Scale Area .
2. Select New Entries.
3. Enter 70+## for the pay scale area and Production area## for the pay scale area text.
In the appropriate Customizing table, assign the pay scale type and the pay scale area to your personnel subarea in the personnel area PA##.
1. In the IMG, choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Check Assignment of Pay Scale Structure to Enterprise Structure .
2. Change your entry as follows: Pers.area: PA##, Personnel subarea: 0006, Pay Scale area 70+##, Pay Scale type 90.
3. Save your data and return to the Project IMG S4HR35.

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