What is retirement allowance in SAP (PY-JP - Japan)?

SAP Term: retirement allowance

• Component: PY-JP

• Component Name: Japan

• Description: A lump sum payment that paid by the company for which the employee works based upon retirement. The payment is usually made after long term employment.

Smart SAP Assistant

• Key Concepts: 
  Retirement allowance is a payment made to an employee upon retirement in Japan. It is a one-time payment that is calculated based on the employee's length of service and salary. The amount of the allowance is determined by the employer and is usually paid out in a lump sum. 
  
  How to use it: 
  In SAP, the retirement allowance is calculated using the PY-JP Japan component. This component allows employers to set up the parameters for calculating the retirement allowance, such as the length of service and salary. The system then calculates the amount of the allowance and displays it on the employee's payslip. 
  
  Tips & Tricks: 
  When setting up the parameters for calculating the retirement allowance, it is important to ensure that all relevant information is included. This includes any bonuses or other payments that may be included in the calculation. Additionally, employers should ensure that they are aware of any changes to the law that may affect the calculation of the allowance. 
  
  Related Information: 
  For more information on retirement allowances in Japan, please refer to the Japanese Ministry of Health, Labour and Welfare website (https://www.mhlw.go.jp/english/). Additionally, employers should consult with their local tax office for advice on how to calculate and pay out retirement allowances.