What is primary wage type in SAP PY - Payroll?

SAP Term: primary wage type

• Component: PY

• Component Name: Payroll

• Description: A wage type that the user can enter when editing master data online online wage type, or that the system produces in time evaluation if predifined conditions are fulfilled time wage type.

Smart SAP Assistant

• Key Concepts: 
  Primary wage type is a term used in SAP Payroll (PY) to refer to the wage type that is used to calculate the employee’s gross salary. This wage type is used as the basis for all other wage types and deductions. It is also used to determine the employee’s net salary after deductions. 
  
  How to use it: 
  In SAP Payroll, the primary wage type is set up in the payroll configuration. This wage type is then used to calculate the employee’s gross salary, which is then used as the basis for all other wage types and deductions. The primary wage type can be changed at any time, but it must be done carefully to ensure that all other wage types and deductions are calculated correctly. 
  
  Tips & Tricks: 
  When setting up a primary wage type in SAP Payroll, it is important to ensure that all other wage types and deductions are set up correctly. This will ensure that the employee’s net salary is calculated correctly. It is also important to keep track of any changes made to the primary wage type, as this can affect the calculation of other wage types and deductions. 
  
  Related Information: 
  For more information on setting up a primary wage type in SAP Payroll, please refer to the SAP Help documentation or contact your local SAP support team.