What is currency fluctuation protection in SAP PA-GE - Management of Global Employees?

SAP Term: currency fluctuation protection

• Component: PA-GE

• Component Name: Management of Global Employees

• Description: A mechanism that enables you to specify a strong currency to protect a global employee's compensation package against the risks of inflation. Suppose a global employee's base salary CPI amounts to 3500 Argentinian pesos. You may decide to pay 30% in pesos and convert 70% to USD, whereafter both amounts are copied to their respective wage types.

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• Key Concepts: 
  Currency fluctuation protection is a feature of the SAP PA-GE Management of Global Employees component. It helps to protect employees from the financial risks associated with currency fluctuations. This is done by allowing companies to set up a currency exchange rate that is used to convert employee salaries from one currency to another. This helps to ensure that employees are not adversely affected by changes in the exchange rate. 
  
  How to use it: 
  The currency fluctuation protection feature can be enabled in the SAP PA-GE Management of Global Employees component. Once enabled, companies can set up a currency exchange rate that will be used to convert employee salaries from one currency to another. This helps to ensure that employees are not adversely affected by changes in the exchange rate. 
  
  Tips & Tricks: 
  It is important to keep an eye on the currency exchange rate and make sure it is updated regularly. This will help ensure that employees are not adversely affected by changes in the exchange rate. Additionally, it is important to make sure that all employees are aware of the currency fluctuation protection feature and how it works. 
  
  Related Information: 
  For more information about the SAP PA-GE Management of Global Employees component, please visit the SAP website at https://www.sap.com/products/pa-ge-management-global-employees.html. Additionally, you can find more information about currency fluctuation protection on the SAP Help Portal at https://help.sap.com/viewer/product/PA_GE_MANAGEMENT_OF_GLOBAL_EMPLOYEES/731/en-US/.