benefit cutoff day

Personnel Management (PA)

This is used to indicate on which specific date the employee's salary group, age group, or length of service group are calculated.

The benefits system often needs to calculate an individual's salary, age or length of service for various purposes. For example for the calculation of health plan cost or insurance plan coverage.

To do this, the system must know on which date it should read employee master data records to make these calculations.

This date is either:

The cutoff day is an override for the cost or credit date, and is entered in relevant views in the IMG.

The algorithm for the calculation of the cutoff day is as follows: