Both paid and unpaid absences are usually collected

Both paid and unpaid absences are usually collected in one counting class. The following rule applies to
the further course of payroll.
Procedure
1. Access the activity using one of the following navigation options:
Transaction code SPRO
IMG menu
Payroll  Payroll: India  Absences  Valuation of Absences
 Create Counting Classes for Absence Valuation
2. Choose Activity
3. Choose New Entries and maintain Counting Class and CC description
4. Choose Activity

5. Choose entry, go to Details
3.2.5. Pay Scale Groupings
Use

In this section, you define pay scale groupings for allowances. These groupings are
used to select employees based on their eligible compensation benefits.
To achieve this, each pay scale grouping is assigned to a combination of pay scale level,
pay scale area, pay scale type, pay scale group and employee subgroup grouping for
Collective Agreement Provision (ESG for CAP).
These groupings determine the eligibility of the employees for various allowances,
reimbursements and perks.
To do this you:

Define pay scale groupings for allowances

Assign pay scale groupings for allowances.
3.2.5.1 Define Pay Scale Groupings for Allowances
Use
In this activity, you define pay scale groupings for allowances to differentiate between
employee groups. These groupings determine which benefits apply to a particular
group of employees.
Procedure
1. Access the activity using one of the following navigation options:
Transaction code SPRO
IMG menu
Payroll  Payroll: India  Pay Scale Groupings  Define Pay
Scale Groupings for Allowances
2. Choose New Entries and maintain Allowance Grouping and Allowance Grouping
description

3. Choose Save
3.2.5.2 Assign Pay Scale Groupings for Allowances
Use
In this activity you assign pay parameters to each 'Pay Scale groupings for Allowance'
created in the previous step, based on:

Pay Scale Area

Pay Scale Type

Pay Scale Group

Pay Scale Level and

Employee Sub Grouping for Collective Agreement Provision (ESG for CAP)
Procedure
1. Access the activity using one of the following navigation options:

Transaction code SPRO
IMG menu
Payroll  Payroll: India  Pay Scale Groupings  Assign Pay
Scale Groupings for Allowances
2. Assign Allowance Grouping for the Pay scale type, Group and Level
3. Choose Save
3.2.6 Basic Salary for India
Use
In this section of the Implementation Guide (IMG), you define rules that govern the employee's basic
salary.
Basic salary is a statutory monthly remuneration applicable to all employees in an organization. Most
components of salary in the organization are calculated, based on the employee's basic salary, personal
pay and Dearness Allowance .
Personal pay is a component of salary used to pay the difference in remuneration as an adjustment
payment. This is subject to company rules in cases such as, when a new employee does not fit in the
employer's pre-defined salary brackets and the employer needs to make a payment to match the agreed
remuneration.