Retirement Allowance Amount Calculation

Use

The Retirement allowance amount calculation report program calculates an employee's retirement allowance amount based on settings in Customizing and in the employee’s master data. The program also generates a batch input session to update Infotype 0015 Additional Payments for each selected employee.

Features

Formulas for Calculating the Retirement Allowance Amount

The program calculates the retirement allowance amount using one of the following formulas.

Formula Based on the Employee’s Basic Pay

Use Infotype 0008 Basic payment and Infotype 0014 Recur. Payments / Deductions as the base amount for the retirement allowance amount calculation.

Retirement allowance = <calculation base amount (basic pay)>

x <payment factor>

x <retirement reason reduction rate>

Formula Based on the Pay Scale for Retirement Allowance

Use the fixed amount in the pay scale table, retrieved by each employee’s pay scale group or level, as a base amount for the retirement allowance amount calculation.

Retirement allowance = <calculation base amount (pay scale)>

x <payment factor>

x <retirement reason reduction rate>

Formula Based on the Individiual Employee’s Total Points

Multiply Individual total point and unit amount to calculate the retirement allowance amount.

Retirement allowance = <unit price>

x <accumulation points>

x <retirement reason reduction rate>

You can choose the calculation formula to be used in the retirement allowance calculation report. In each of the calculation formulas, you can customize the following variables:

Retirement reason reduction rate

For information on customizing calculation formulas, refer to the Implementation Guide (IMG) for Retirement Allowance.

Adjustment of Retirement Allowance Amount

If necessary, you can adjust the retirement allowance amount, calculated by the report program, before you generate the batch input file.

The retirement calculation report displays calculated results on the screen so that you can check the results and, if necessary, make changes. This allows you to make special adjustments for each selected employee when you find that the customized calculation formula has not covered all cases.

See also:

Calculating Retirement Allowance Amount