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PBS_AU_PAD_SA_020 - Define National Wage Case (NWC) increase for Superannuation

PBS_AU_PAD_SA_020 - Define National Wage Case (NWC) increase for Superannuation

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Every year, an employee gets a salary increase. The additional salary is a certain percentage of the current salary. The percentage is defined in the table that you maintain in this step, as well as the start date and ratification date. The start date is the date when an increase in the employee's salary takes place, which is very often put into effect retrospectively. The ratification date is the date when the start date and percentage of increase are fixed. The Reason Code in this table is always set to 04 (NWC increase).

The increase of the salary will result in an update of Basic pay infotype (0008).

For calculation of superannuation, the superable salary is reviewed on every birthday of the employee, that means that the entry in Basic pay infotype is checked for the current salary on this particular date. However, there is a restriction for the members of a CSS fund: if the start date is before and the ratification date after the review date, which is the birthday of the employee, the original amount of the salary is taken into account, that means the salary that was paid before the increase. In case of the employee being a member of a PSS fund, the superable salary is calculated as the increased salary, no matter if the ratification date is before or after the birthday.

In the year 2000, an employee has an annual salary of 36,000.00 AUD. On the next ratification date on 01.03.2001, the start date of increase is fixed at 01.10.2000 and the increase at 10%. So the entries in Basic pay infotype are the following:

01.01.2000 to 30.09.2000: 36,000.00 AUD

01.10.2000 to 31.12.9999: 39,600.00 AUD.

Assuming that the employee's birthday is on 01.11., then this is the date that is checked for superable salary. If the employee pays into a PSS fund, the increased salary of 39,600.00 AUD is considered for superannuation, in case of CSS, only 36,000.00 AUD are considered.

  1. Choose New entries.
  2. Select the following entries:
  • Country Grouping

  • Pay Scale Type

  • Pay Scale Area

  • ES grouping for collective agreement provision

  • Pay Scale Group

  • Pay Scale Level

  1. Select the Start Date for the salary increase. The End Date is adjusted automatically.
  2. Select the Ratification Date on which the data for increase are fixed.
  3. Select the Percentage of Increase.
  4. For the Reason Code, select 04 for NWC increase.
  5. Choose Save.

Find more information about Pay Scale Increase in IMG -> Personnel Management -> Personnel Administration -> Payroll Data -> Basic Pay -> Pay Scale Changes.






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