What is 'average base salary' in SAP PA-PF - Pension Schemes?

average base salary - Overview

• Component: PA-PF

• Component Name: Pension Schemes

• Description: The average salary of the last 5 years that is, between 60 and 65 ; used in various formulas throughout the pension plan especially in projections.

average base salary - Details

• 
  Key Concepts: 
  Average base salary is a component of the PA-PF Pension Schemes in SAP. It is the average of the employee's base salary over a period of time, usually 12 months. This average is used to calculate the pension benefits for the employee. 
  
  How to use it: 
  In order to calculate the average base salary, you must first enter the employee's base salary into SAP. This can be done by entering the employee's salary information into the relevant fields in the PA-PF Pension Schemes module. Once this is done, SAP will automatically calculate the average base salary for the employee. 
  
  Tips & Tricks: 
  It is important to ensure that all of the employee's salary information is up-to-date and accurate before calculating their average base salary. This will ensure that their pension benefits are calculated correctly. 
  
  Related Information: 
  The average base salary is just one component of the PA-PF Pension Schemes in SAP. Other components include contributions, vesting periods, and retirement age. It is important to understand all of these components in order to ensure that employees receive their full pension benefits.