What is pensionable earnings in SAP PA-BN - Benefits?

SAP Term: pensionable earnings

• Component: PA-BN

• Component Name: Benefits

• Description: The employee salary on which the amount of retirement benefit for a retirement plan can be based. &EXAMPLE& A company retirement plan provides a pension based on the average of the highest consecutive 15 months of earnings during an employment period.

Smart SAP Assistant

• Key Concepts: 
  Pensionable earnings are the wages or salary that an employee earns during a certain period of time, which are used to calculate the amount of pension benefits they will receive. In SAP, pensionable earnings are managed through the PA-BN Benefits component. 
  
  How to use it: 
  In order to manage pensionable earnings in SAP, you must first set up the PA-BN Benefits component. This includes setting up the relevant wage types and assigning them to the employee’s payroll area. Once this is done, you can enter the employee’s pensionable earnings in the relevant wage type and it will be used to calculate their pension benefits. 
  
  Tips & Tricks: 
  It is important to ensure that all relevant wage types are set up correctly in order for the pensionable earnings to be calculated accurately. Additionally, it is important to ensure that all relevant information is entered correctly in order for the pension benefits to be calculated correctly. 
  
  Related Information: 
  For more information on how to set up and manage pensionable earnings in SAP, please refer to the SAP Help Portal or contact your local SAP support team.