What is 'premium wage' in SAP PT - Personnel Time Management?

premium wage - Overview

• Component: PT

• Component Name: Personnel Time Management

• Description: A generic term used to describe a type of piecework wage. Payment is effected in direct proportion to the quantity produced in piecework. The premium wage can include other criteria. You can limit the labor utilization rate to 130%, for example, to prevent strain on your employees or machines. Other values can be used to valuate performance, as well as the quantity produced. For example, the rate of consumption of operating supplies or the quality of the products produced.

premium wage - Details

• 
  Key Concepts: 
  Premium wage is a type of wage payment in SAP Personnel Time Management (PT) that is used to pay employees for working overtime or on holidays. It is calculated as a percentage of the employee's regular wage and is paid in addition to the regular wage. 
  
  How to use it: 
  Premium wage can be set up in SAP PT by creating a wage type for premium wage payments. This wage type can then be assigned to the employee's time record, which will calculate the premium wage amount based on the percentage set up in the wage type. 
  
  Tips & Tricks: 
  When setting up premium wages, it is important to ensure that the correct percentage is set up in the wage type. This will ensure that employees are paid correctly for their overtime or holiday work. 
  
  Related Information: 
  Premium wages are just one of many types of wages that can be set up in SAP PT. Other types of wages include basic wages, shift premiums, and bonuses.