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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message 5L060 - Employer company rate is less than statutory rate. ?

  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 is indeed lower than the statutory rate, update the employer contribution rate to meet or exceed the statutory requirement.
  Make sure to communicate with the finance or payroll department to confirm the correct rates.
  
  
  
  Review Legislative Changes:
  
  Stay informed about any recent changes in labor laws or regulations that may affect employer contribution rates.
  Update the SAP system accordingly to reflect these changes.
  
  
  
  Testing:
  
  After making changes, run a test payroll to ensure that the error no longer occurs and that the contributions are calculated correctly.
  
  
  
  Documentation:
  
  Document any changes made to the configuration for future reference and compliance purposes.
  
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any specific guidance or patches related to this error message.
  User Manuals: Refer to SAP user manuals or help documentation for detailed instructions on configuring payroll components.
  Consult with Experts: If the issue persists, consider consulting with an SAP payroll expert or your organization's SAP support team for further assistance.
  
  By addressing the configuration and ensuring compliance with statutory requirements, you should be able to resolve the error message 5L060 effectively.