Calculating BRDs in Absence Relapses

When an employee's temporary disability is a relapse of a previous temporary disability, the system must continue to calculate the employee's Social Security legal benefits. When performing the calculation, the system must use either the BRD associated with the initial temporary disability or the BRD associated with the new temporary disability.

This feature enables you to choose which BRD you want the system to use to calculate the Social Security legal benefits for the employee during an absence event relapse, either the initial BRD or the new BRD.

PeopleSoft Global Payroll for Spain delivers four variables, one for each absence type, to direct the system how to calculate the BRD when an employee has a relapse absence event for a temporary disability. The following table describes the variables:

The default value of these variables is A (meaning previous, anterior), which calculates the BRD by dividing the amount of the worker's contributory base for the month prior to the original begin date of the disability by the number of days to which the contribution refers. To calculate the BRD with the daily base related to the month before the last absence instance, you must change the value of the variable to N (meaning new, nuevo) on the Definition page of the Variables component. To access this page, select Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Elements > Supporting Elements > Variables.

The system uses these variables in the SS FM BRD RECAIDA formula to calculate the Social Security legal benefits for relapse cases. Depending on the variables value, the system uses either the initial BRD or the new BRD in the calculation.