What is entitlement in SAP PY - Payroll?

SAP Term: entitlement

• Component: PY

• Component Name: Payroll

• Description: Represents a benefit that is received from a company sometime in the future. Entitlements are divided into primary entitlements, which are confirmed directly for an employee, and secondary entitlements, which result from a confirmed primary entitlement. &EXAMPLE& Primary entitlement: Entitlement to a retirement pension. Secondary entitlement: In case of invalidity, the employee receives an invalidity pension instead of a retirement pension.

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• Key Concepts: 
  Entitlement in SAP Payroll is a feature that allows employers to set up rules and conditions for their employees’ pay. This includes setting up rules for overtime, bonuses, and other types of compensation. Entitlements can be set up to ensure that employees are paid correctly and in accordance with the company’s policies.
  
  How to use it: 
  In order to set up entitlements in SAP Payroll, employers must first define the rules and conditions for each type of entitlement. This includes setting up the amount of overtime, bonuses, and other types of compensation that an employee is entitled to receive. Once these rules have been defined, employers can then assign entitlements to individual employees or groups of employees. 
  
  Tips & Tricks: 
  When setting up entitlements in SAP Payroll, it is important to ensure that the rules and conditions are clearly defined and easy to understand. This will help ensure that employees are paid correctly and in accordance with the company’s policies. Additionally, it is important to review the entitlements regularly to ensure that they are still applicable and up-to-date. 
  
  Related Information: 
  For more information on setting up entitlements in SAP Payroll, please refer to the official SAP documentation. Additionally, there are many online resources available that provide helpful tips and tricks for setting up entitlements in SAP Payroll.