Wage Types

Payroll and Personnel Administration objects used to differentiate between monetary amounts or time units that are used in different ways to calculate the employee's remuneration. In the SAP System monetary amounts or time units that serve different business purposes, and that are processed in different ways during the payroll run, are delimited from one another using wage types.


There are two categories of wage types:

• Primary Wage Types

Primary wage types include:

• Dialog wage types that you enter when maintaining master data in the infotypes.
• Time wage types that the system forms using time information or that you enter online.

• Secondary Wage Types

Secondary wage types are technical wage types generated by the system in Payroll during the payroll run. These wage types have different purposes in the SAP system:

• A wage type is typically evaluated with a monetary amount that should be paid out to the employee or that they should withhold.
• It can also be used to cumulate several amounts for statistical evaluation.
• It can be used by the system in Payroll to temporarily store interim results, and to move from one step to the next.

 
A wage type consists of the following fields:

• AMT (Amount)

In the case of a standard pay wage type, for example, it contains the amount that the employee should receive.

• RTE (Rate)

Contains the valuation basis therefore in the case of an hourly wage type the hourly rate, which should be multiplied by the number of hours performed by the employee, during the payroll run.

• NUM (Number)

In the case of a time wage type, for example, it contains a number of time units such as hours, which, during the payroll run, should be multiplied by the valuation basis that you specified for this time wage type in Customizing.

Dialog Wage Types 

Primary wage type that you enter on-line.
You enter a dialog wage type in the following infotypes in the SAP System:

• Basic Pay infotype (0008)
• Recurring Payments and Deductions Infotype (0014)
• Additional Payments infotype (0015)
• EE Remuneration Info infotype (2010)
• External Bank Transfers infotype (0011)
• Time Quota Compensation infotype (0416)

Secondary Wage Type 

A technical wage type generated by the system. You do not enter secondary wage types on-line. The system generates secondary wage types during the payroll run or derives them from particular factors. Secondary wage types are also wage type that cumulate several wage types or temporarily store interim results.

Processing Class 

A wage type characteristic that controls processing during payroll.There are different processing classes for the various processing steps that are carried out within payroll. During the payroll run, the system processes a wage type in a certain processing step according to its individual specification in the respective processing class. The standard system contains processing classes that have different specifications. You can also create customer processing classes and specifications in Customizing for Payroll under Environment ® Environment of Wage Type Maintenance ® Processing and Evaluation Classes ® Maintain Evaluation Classes and their Specifications.





Evaluation Class
Wage type characteristic, which controls processing when evaluating and displaying the payroll results. There are various evaluation classes for the different processing steps within the evaluation and displaying of payroll results. During evaluation, the system processes a wage type in a certain processing step according to it's individual specification in the respective evaluation class.
The standard system contains evaluation classes with different specifications. You can also create customer evaluation classes and specifications in Payroll Customizing under Environment ® Environment of Wage Type Maintenance ® Processing and Evaluation Classes ® Maintain Evaluation Classes and their Specifications.