How To Fix 5L059 - Employee company rate is less than statutory rate.

SAP Error Message - Details

• Message type: E = Error

• Message class: 5L - Messages for Malaysian HRMS.

• Message number: 059

• Message text: Employee company rate is less than statutory rate.

What causes this issue?

The company rate entered in the company rates table is less than the
statutory rate.

System Response

The system will take the statutory rate by default.

How to fix this error?

To continue with company rates, create a new entry in the company rates
table with a new value.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 5L059 - Employee company rate is less than statutory rate. ?

  The SAP error message 5L059 indicates that the employee's company rate for a specific benefit or deduction is less than the statutory rate defined in the system. This typically occurs in the context of payroll processing, where the system checks if the contributions or deductions for an employee meet the minimum legal requirements set by the government or regulatory bodies.
  Cause:
  
  Incorrect Configuration: The employee's company rate for a specific benefit (like social security, health insurance, etc.) may have been set incorrectly in the system.
  Outdated Rates: The statutory rates may have been updated, but the company rates have not been adjusted accordingly.
  Employee Master Data: There may be issues with the employee's master data, such as incorrect assignment to a pay scale or incorrect benefit eligibility.
  Payroll Schema Issues: There could be issues in the payroll schema or rules that are not correctly calculating the rates.
  
  Solution:
  
  Review Employee Master Data: Check the employee's master data to ensure that all relevant information is correct, including pay scale, benefit eligibility, and any other relevant fields.
  Update Company Rates: Compare the company rates against the statutory rates. If the company rate is indeed lower, update it to meet or exceed the statutory requirement.
  Check Statutory Rates: Ensure that the statutory rates in the system are up to date. If they have changed, update them accordingly.
  Consult Payroll Configuration: Review the payroll configuration settings to ensure that the calculations are being performed correctly. This may involve checking the payroll schema and rules.
  Testing: After making changes, run a test payroll to ensure that the error does not reoccur and that the calculations are correct.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or updates related to this error message. SAP frequently releases notes that provide guidance on resolving specific issues.
  Documentation: Refer to SAP documentation for payroll configuration and statutory requirements in your specific country or region.
  Support: If the issue persists after checking the above points, consider reaching out to SAP support or your internal SAP team for further assistance.
  
  By addressing the underlying causes and ensuring that all rates are correctly configured, you should be able to resolve the error message 5L059 effectively.