What is base compensation component in SAP SRD-HR-CMS - HCM-Compensation?

SAP Term: base compensation component

• Component: SRD-HR-CMS

• Component Name: HCM-Compensation

• Description: A constituent element of payment, either assigned to the payment record of an employee or defined with a fixed amount, and used as a basis to calculate the amount of a separate constituent element of payment.

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• Key Concepts: 
  Base compensation component is a term used in SAP Human Capital Management (HCM) to refer to the base salary or wage that an employee receives. This is the amount of money that an employee is paid before any additional benefits, such as bonuses or overtime pay, are added. It is also known as the base pay or base salary. 
  
  How to use it: 
  In SAP HCM, the base compensation component can be used to calculate an employee's total compensation package. This includes the base salary, any bonuses or overtime pay, and any other benefits that may be included in the package. The base compensation component can also be used to compare different employees' salaries and benefits packages. 
  
  Tips & Tricks: 
  When setting up a base compensation component in SAP HCM, it is important to ensure that all relevant information is included. This includes the employee's job title, job grade, and any other relevant information that may affect their salary or benefits package. Additionally, it is important to ensure that the base compensation component is updated regularly to reflect any changes in the employee's job title or job grade. 
  
  Related Information: 
  The SAP HCM module also includes other components related to compensation, such as variable pay components and performance-based pay components. Additionally, SAP HCM also includes tools for managing employee benefits packages and tracking employee performance.