What is activation contribution in SAP PY-BE - Belgium?

SAP Term: activation contribution

• Component: PY-BE

• Component Name: Belgium

• Description: A contribution to be paid as of January 1, 2018 by employers who allow their employees to be inactive for a full quarter. Employees can apply for this work exemption irrespective of their status blue-collar/white-collar worker, their length of service, and their age. The employer’s contribution rate depends on the employee’s age at the start of the work exemption and is relevant for employers for whom the Collective Bargaining Agreement Act CBA of December 5, 1968 applies. The contribution is collected by the National Office for Social Security and is included in the DmfA.

Smart SAP Assistant

• Key Concepts: 
  Activation contribution is a feature of the PY-BE Belgium component of SAP software. It allows employers to make contributions to an employee's pension fund, which are then used to pay for the employee's pension benefits. The employer can choose to make either a fixed or variable contribution, depending on their needs. 
  
  How to use it: 
  In order to use activation contribution, employers must first set up the feature in their SAP system. This involves setting up the contribution rate and the type of contribution (fixed or variable). Once this is done, employers can then make contributions to their employees' pension funds as needed. 
  
  Tips & Tricks: 
  When setting up activation contribution, employers should consider their budget and the needs of their employees. Employers should also ensure that they are compliant with any applicable laws and regulations regarding pension contributions. 
  
  Related Information: 
  For more information on activation contribution, employers should consult the official SAP documentation or contact their SAP support team. Additionally, employers may want to consult with a financial advisor or other professional to ensure that they are making the best decisions for their business and employees.