What is indexation percentage in SAP PY-UA - Ukraine?

SAP Term: indexation percentage

• Component: PY-UA

• Component Name: Ukraine

• Description: The percentage that you apply to an employee’s salary to calculate the indexation amount that applies to an employee’ salary. According to legislation, you calculate the indexation percentage when the cumulated consumer price index CPI exceeds a legally defined threshold. For example, assume that the threshold is 101%, the CPI in March is 100.5%, and the CPI in April is 100.8%. The cumulated CPI in April is 101.3%. The increase in the indexation percentage in April is 1.3% cumulated CPI 101.3% less 100%. You cumulate the indexation percentage that applies to an employee’s salary each time the cumulative CPI exceeds the threshold for calculating indexation.

Smart SAP Assistant

• Key Concepts: 
  Indexation percentage is a feature of the PY-UA Ukraine component of SAP software. It is used to adjust the amount of wages and salaries paid to employees in Ukraine in accordance with the changes in the consumer price index. The indexation percentage is calculated based on the difference between the current consumer price index and the base consumer price index. 
  
  How to use it: 
  The indexation percentage is used to adjust the wages and salaries of employees in Ukraine. The adjustment is made by multiplying the employee's salary or wage by the indexation percentage. This ensures that employees are compensated for inflation and other economic changes. 
  
  Tips & Tricks: 
  It is important to ensure that the indexation percentage is updated regularly to ensure that employees are compensated accurately for inflation and other economic changes. Additionally, it is important to ensure that all relevant information regarding the calculation of the indexation percentage is accurately recorded and stored for future reference. 
  
  Related Information: 
  The indexation percentage feature of SAP PY-UA Ukraine component is based on the Ukrainian Labor Code, which outlines the rules and regulations regarding wages and salaries in Ukraine. Additionally, more information about this feature can be found in SAP's official documentation.