SAP HR - Primary & Secondary Wage Types


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Wage type is one of the key components in payroll processing. Based on the way they store information, wage type can be divided into two categories.

Primary Wage Type

Primary wage type is defined as wage type for which data is entered in Infotype. Primary wage types are created by copying model wage types provided by SAP. There are different type of primary wage types −

Time wage type

Time wage type is used to store the time related information. This wage type is used to combine payroll and time management. Time wage type is generated at time evaluation and configure through T510S or using custom PCR.

Time Wage Type

Dialogue Wage Type

These wage type includes basic pay IT0008, recurring payments and deductions IT0014, and additional payments IT0015.

Dialogue Wage Type

Secondary Wage or Technical Wage Type

Secondary wage types are predefined wage types in SAP system and starts with a slash (/). These wage types are created during payroll run.

These wage types are system generated and cannot be maintained online.

/559 Bank Transfer

Secondary or Technical Wage Type

Wage type Elements:

Key elements of a wage type include −

  • Amount AMT
  • Rate RTE
  • Number NUM

As per processing type each element can have one, two or all element values.

Example

Basic pay can have Rate and Number. However, a bonus pay can have only amount.



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