What is pension additional contribution in SAP SRD-HR-PAY - HCM-Payroll Processing?

SAP Term: pension additional contribution

• Component: SRD-HR-PAY

• Component Name: HCM-Payroll Processing

• Description: Pension additional contribution according to the collective agreement or company regulations. In general, 90% pension additional contribution will be repaid by the employment office.

Smart SAP Assistant

• Key Concepts: 
  Pension additional contribution is a feature of SAP HCM-Payroll Processing that allows employers to make additional contributions to their employees’ pension plans. This feature allows employers to provide additional benefits to their employees, such as higher retirement benefits or more flexible pension plans. 
  
  How to use it: 
  To use the pension additional contribution feature, employers must first set up the feature in the SAP system. This includes setting up the pension plan, defining the contribution rate, and setting up the payment schedule. Once the feature is set up, employers can make additional contributions to their employees’ pension plans by entering the amount of the contribution in the system. 
  
  Tips & Tricks: 
  When setting up the pension additional contribution feature, employers should consider how much they are willing to contribute and how often they want to make contributions. Employers should also consider how much their employees will benefit from the additional contributions and whether they will be able to take advantage of any tax benefits associated with making additional contributions. 
  
  Related Information: 
  For more information about setting up and using the pension additional contribution feature in SAP HCM-Payroll Processing, please refer to SAP’s online documentation. Additionally, employers should consult with their financial advisors or tax professionals for advice on how best to use this feature.