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Purpose

The purpose of this page is to clarify the understanding of the system logic and requirements in relation to operation PLZLA

Overview

This chapter describes how to set up the procedures of calculation of sick pay base and other allowance bases and how to set up the valuation of sick pay and other allowances.

Entering the allowances

The wage types of sick pay and allowances are generated from absences entered in infotype 2011. Sick pay is generated indirectly, after processing of sick pay periods by sick pay calendar

function PLPCG. All other allowances are generated directly from their relevant absence types. Allowances generated directly from absence records entered in infotype 2001:

  • maternity allowance,
  • care allowance,
  • rehabilitation allowance.

Allowances generated using sick pay calendar function:

  • sick pay caused by illness,
  •  sick pay after an accident.

Valuation of wage types

All allowances are valuated according to their bases. Sick pay is reduced according to constants CLM10 and CLM16 in case when the employee delivers their sickness certificate later than on the 7th day after it was signed by the doctor. The amount of the reduction is calculated by operation PLAC in rule PLSZ.

All allowance wage types must have appropriate setting in processing class 11 .

All allowance wage types must have appropriate setting in processing class 27 .

The procedure using operation PLZLA

Allowance base is calculated using operation PLZLA. It is calculated as average from 12 months preceding the begin date of the period of the valuated absence, with assumption that a chain of absences must be concatenated if the gaps between them are no longer than 3 months. In case the gap between the current absence and the previous absence is shorter than full 3 calendar months then the same average scope must be used. However, even if the scope of months included in the average is the same, the calculation is performed again for each absence. It is important because a particular wage type may have been removed from employee’s remuneration structure and in such case the wage type must not be included in the calculation anymore.Operation PLZLA performs the gross down calculation, too. It means that it calculates the “after social insurance” amounts of wage types, it also calculates the full-month equivalents of wage types and includes the remuneration from contracts of mandate. The information about the wage types included in the calculation are stored in payroll results for reporting purpose.

Setting up operation PLZLA

Compensation structure models

Setting up the absences

Hiring action relevancy

How the wage types included in average are assigned to months

Changes in wage type settings 

 

 

 

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