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PAY_IN_TER_700 - Calculation method for Notice Pay

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In this activity, you maintain the NPCMT constant to calculate the notice pay amounts. The system calculates the notice pay amount when an employee submits a resignation, and decides to leave on a date earlier than the date specified as the end of notice period.

Notice pay wage type configured in V_T7INA9 is used as basis for calculation of notice pay.

The value maintained in this activity indicates the method that the system uses for calculating notice pay of an employee. The options are:

• 1 - for the remaining days in the notice period, the system calculates the prorated value of notice pay amount every month using number of days in that month and then calculates the total notice pay amount.

• 2 - for the remaining days in the notice period, the system calculates notice pay proration based on number of days in the month of leaving.

Choose the relevant option against the NPCMT constant in the Value field.

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Length: 1203 Date: 20240607 Time: 072129     sap01-206 ( 29 ms )