What is vesting rule in SAP PA-CM - Compensation Management?

SAP Term: vesting rule

• Component: PA-CM

• Component Name: Compensation Management

• Description: A rule that you can use to determine helps you determine how vesting is handled in accordance with your company policy.

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• Key Concepts: 
  A vesting rule is a feature of SAP’s Compensation Management (PA-CM) module that allows employers to set up rules for when employees can access their compensation. Vesting rules can be used to ensure that employees must stay with the company for a certain period of time before they can access their compensation, or to set up a schedule for when employees can access their compensation over time. 
  
  How to use it: 
  To set up a vesting rule in SAP’s Compensation Management module, employers must first define the vesting rule in the system. This includes setting the start date, end date, and any other conditions that must be met before the employee can access their compensation. Once the vesting rule is defined, employers can assign it to individual employees or groups of employees. 
  
  Tips & Tricks: 
  When setting up a vesting rule in SAP’s Compensation Management module, employers should consider how long they want employees to stay with the company before they can access their compensation. Employers should also consider how often they want employees to be able to access their compensation over time. 
  
  Related Information: 
  SAP’s Compensation Management module also includes features such as bonus plans and salary increases, which can be used in conjunction with vesting rules to ensure that employees are rewarded for staying with the company for a certain period of time.