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RTP_KR_006 - Define Contribution Rates

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In this Customizing activity, you define the rates that the system uses to calculate pension contributions. To determine the rates, the system processes the decision factors for rates; therefore you need to define the rates based on those decision factors.

The Calculate Retirement Pension Contribution (KR) (KRRPC) payroll function reads the determined rates and multiplies them with the contribution bases to get the contribution amounts from either the employer or the employees.

You have defined a process to calculate an employee's service length in Customizing for Personnel Managementunder Personnel Administration -> Evaluation Basis -> Calculation of Employment Period.

First, you need to specify the decision factors the system uses to determine the rates:

• None: a default fixed rate

• Seniority: floated rates according to employees' service lengths

Note

For the Seniority criteria, you must assign a process to calculate employees' service lengths. For more information about how to define the calculation process, see the Requirements section.

Then, you can define contribution rates for each decision factor.

If you need to differentiate rates of pension contribution for your employees according to how long they have worked for the company, you can define the rates as follows:

• 0 to 3 years: 9.3%

• 3 to 5 years: 9.8%

• 5 years and upwards: 10.2%

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Length: 2005 Date: 20240523 Time: 200615     sap01-206 ( 40 ms )