How To Fix 5L060 - Employer company rate is less than statutory rate.

5L060 - Overview

• Message type: E = Error

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

• Message number: 060

• Message text: Employer 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.

5L060 - Details

• The SAP error message 5L060, which states "Employer company rate is less than statutory rate," typically occurs in the context of payroll processing within the SAP system. This error indicates that the employer's contribution rate for a specific payroll component (such as social security, health insurance, or pension contributions) is set lower than the legally mandated statutory rate.
  
  Cause:
  
  Configuration Error: The employer contribution rate may have been incorrectly configured in the system.
  Regulatory Changes: Changes in legislation may have increased the statutory rates, and the system has not been updated accordingly.
  Data Entry Error: There may have been a mistake in entering the employer contribution rates in the relevant configuration tables.
  
  
  Solution:
  
  
  Check Configuration:
  
  Navigate to the relevant configuration settings in SAP (usually found in the SPRO transaction under Payroll settings).
  Verify the employer contribution rates for the specific payroll component in question.
  Ensure that the rates are aligned with the current statutory requirements.
  
  
  
  Update Rates:
  
  If the employer rate