What is cost-of-living index in SAP PA-GE - Management of Global Employees?

SAP Term: cost-of-living index

• Component: PA-GE

• Component Name: Management of Global Employees

• Description: Index in which the cost of living in different countries or in different cities of one country can be seen in relation to each other. The cost-of-living index COLI uses a shopping basket to compare the prices of goods and services in the various countries or cities. Since there are no standard guidelines for the content of such a shopping basket, the COLI can vary depending on the organization that calculates it. &EXAMPLE& A COLI for Germany and USA of 1.8 means that the cost of living in the United States is 1.8 times higher than in Germany. A COLI that compares ten countries with each other sets 100% as the mean of all the countries. If a country has an index of 120%, this means that the cost of living in that country is 20% higher than the average of the ten countries.

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• Key Concepts: 
  The cost-of-living index is a component of the PA-GE Management of Global Employees module in SAP. It is used to calculate the cost of living for employees who are working in different countries. The index is based on the prices of goods and services in each country, and it is used to adjust salaries for employees who are working in different countries. 
  
  How to use it: 
  The cost-of-living index can be used to calculate the cost of living for employees who are working in different countries. The index is based on the prices of goods and services in each country, and it is used to adjust salaries for employees who are working in different countries. The index can be used to compare the cost of living between two countries, or to compare the cost of living within a single country over time. 
  
  Tips & Tricks: 
  When using the cost-of-living index, it is important to remember that the index is based on the prices of goods and services in each country. Therefore, it is important to ensure that the data used to calculate the index is up-to-date and accurate. Additionally, it is important to remember that the index does not take into account other factors such as taxes or exchange rates, which may also affect the cost of living for employees. 
  
  Related Information: 
  The cost-of-living index is part of SAP’s PA-GE Management of Global Employees module. This module also includes other components such as salary planning, tax planning, and relocation planning. Additionally, SAP offers a variety of other modules that can be used to manage global employees, such as HR Renewal and SuccessFactors Employee Central.