Basic pay information of an employee is stored in basic pay Infotype (0008). An employee’s payroll history can be checked using Infotype history.
In case an employee leaves an organization, the basic payroll data for that employee remains in the system to ensure accuracy of any retroactive account runs to be performed. A basic pay Infotype 0008 can be processed itself with a personnel action. To create a new record you need to enter payment type on maintain HR master data screen.
The standard system contains the following payment types as subtypes −
A pay scale reclassification involves moving an employee to a new pay scale group and to a different pay scale level. In this case, an employee receives the remuneration for the new pay level assignment.
A pay scale reclassification is performed in a payroll period prior to running the payroll. The pay scale reclassification must always take place before the standard pay increase.
To perform pay scale reclassification, go to SPRO → IMG → Personnel Management → Personnel Administration → Payroll Data → Basic Pay → Pay Scale Changes → Pay Scale reclassification → Specify pay scale reclassification.
A pay scale Structure consists of the following components −
A pay scale area is used to define a geographical area where a collective agreement is valid. The geographical area is determined by the size of pay scale area.
A pay scale area is defined in Customizing Personnel administration and is identified by four character alphanumeric identifier per country. You also define pay scale groups and levels for each pay scale type and employee subgroup grouping in a pay scale area.
The default values are suggested for payscale type and groups and linked to personnel subarea when you create a record in basic pay Infotype (0008).
A Pay scale type is used to define the area of economic activity for which an agreement is valid. The geographical area in which it is valid is applied to the full company.
Pay scale type is also defined in customizing Personnel administration and is identified by four character alphanumeric identifier per country. You define pay scale groups and level for each pay scale area and employee subgroup grouping in each pay scale type.
A Pay scale groups and pay scale levels are used to define the criteria to classify data for job evaluations and indirect valuations. Each pay scale groups is further divided in pay scale levels.
In customizing for Personnel administration, you define pay scale groups and levels per country grouping, pay scale area, type and employee subgroup grouping.
A pay scale group is defined with an alphanumeric identifier with a maximum of eight characters and pay scale levels are described with a two-character alphanumeric identifier.