Overview of Rate Definitions
Rate definitions need to be defined to calculate and process absence payments for Shared Parental Leaves only.
To enable the payment of the absence in payroll, you must define rate definitions. When creating an absence plan, you need to specify the payment rate that is applicable to this plan. This payment rate can either be derived by a formula or based on a rate definition.
A placeholder rate must be associated with the absence plan as well as the element, to trigger the calculation of the statutory rate. Use a single rate for all the statutory absence plans.
Additionally, you might also need to create one or more rates to calculate the deduction from salary. This is optional and depends on your policy regarding payment and deduction for absence.
- A salary basis is not being used.
- If the deduction rate is based on various salary elements.
Rate definitions are not required if:
- A salary basis is being used such that it returns a non-zero value.
- If you reduce the regular earnings by the absence payment.