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Old 07-24-2010, 01:22 PM
bholas bholas is offline
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Default SAP HCM-benefits


based on my single and married employees that are either compensate 20 x of their salary or 30 x of their salary, under the emloyer credit, how do I define the credit factor for example in the case single they can be smoker and non-smoker.

For example:
The Standard Insurance plan offers the following coverages:
Costs are calculated per month. The cost factor for employer cost is 0.20, and the base unit of coverage is $1,000. Therefore the monthly cost of coverage for the employee is as follows:
($40,000 / $1,000) x 0.20 = $8
($60,000 / $1,000) x 0.20 = $12

Like in the case of these, their coverage is something like a fixed amount as compare to my death insurance whereby it is not fixed amount but based on their salary and multiply by either 20/30 depending on whether the employees are married/single.

In the case of employee who are single(can be smoker/non-smoker) their salary might be $1000/$1200/$2000 and if they die their amount they receive will be:
In the case if the emploee salary is $1000 it will be-->1000 x 20 = SGD$20000.

Is the credit factor under the employer cost the same meaning as the cost factor under the employee cost ? The credit factor is it used to determine whether is the insrance 100% paid by company or it means something else like how to manage to use this factor to calculate the premium to pay annually?

How is the base amount calcualated out like in the example above I f1 and base amount is :$1,000. How do they get this amount?


As per the documentation on this field, it is indeed te same meaning as for the employee. F1 help says

Benefit Factor for Employer Credit/Costs


Determines the employer cost/credit for the plan per base unit of coverage, for the period specified in the variant. The cost/credit for the plan is the number of base units in the coverage multiplied by the cost/credit factor:

Cost = (Coverage Amount / Base Unit) x Cost/Credit Factor


If you specify a cost/credit factor, you must also specify a base unit
of coverage.


The Standard Insurance plan offers $60,000 coverage. The total costs are split 1:3 between the employer and employee.

The total cost factor is 0.20 per month and the base unit is $1,000.

Costs are calculated per month. The total cost factor for cost is 0.20, and the base unit of coverage is $1,000. Therefore the monthly cost of coverage for the employee/employer is as follows:

($60,000 / $1,000) x 0.05 = $3

($60,000 / $1,000) x 0.15 = $9

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