What is 'notional salary' in SAP PA-BN-FB - Flexible Benefits?

notional salary - Overview

• Component: PA-BN-FB

• Component Name: Flexible Benefits

• Description: Value upon which all salary calculations are based. Used in the Total Package Funding Scheme, the Notional Salary is usually a percentage of the total package value.

notional salary - Details

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  Key Concepts: 
  Notional salary is a term used in the SAP PA-BN-FB Flexible Benefits component. It is a virtual salary amount that is used to calculate the benefits that an employee is entitled to receive. This amount is based on the employee's actual salary, but it can be adjusted to reflect any changes in the employee's salary or benefits package. 
  
  How to use it: 
  The notional salary is used to calculate the benefits that an employee is entitled to receive. It is calculated by taking the employee's actual salary and adjusting it for any changes in the employee's salary or benefits package. The notional salary can then be used to determine the amount of benefits that an employee is eligible for. 
  
  Tips & Tricks: 
  When calculating the notional salary, it is important to take into account any changes in the employee's salary or benefits package. This will ensure that the notional salary accurately reflects the employee's current situation and that they are receiving the correct amount of benefits. 
  
  Related Information: 
  The notional salary can also be used to calculate other types of benefits, such as pension contributions and health insurance premiums. It can also be used to determine how much an employee should receive in bonuses or other forms of compensation.