India Salary Breakdown and Automation

A SuccessFactors Innovation

Background

India has specific localized policy for determining salary payments, allowing taxable exceptions for several pay components which are constructs of the overall salary.

Unlike many countries, this pay component structure forms part of the overall salary calculation with pay being separated into taxable basic pay, other components and a balancing figure

The problem for HR solutions is being able to meet the demand for defining a single value for annual salary consistent with other country reporting, while also meeting the requirement for local salary definition and payroll integration. Additionally, high profile/sensitive, user visible functionality such as compensation and compensation statements have been unable to properly represent India salary packages to employees. Due to the simplicity of non-Indian salary solutions, the statement process has been universally available and widely deployed.

With the provisioning of this solution by Cognizant for a Global Client with a large Indian employee population, the need to improve the employee experience for reward and automate the local interface has now been met.

India Benefit Construction

In SuccessFactors we have provided a custom table that holds the benefit. The table below links the pay grade to the permitted benefit and the rules lookup for each employee level to determine which pay component to add and the appropriate amount.

Developing Automated Change Processes

Within each employee process, part of the innovation of improving user experience is to reduce or optimize the number of manual selections, complex calculations and data maintenance. In moving HR processes out to managers and employees to initiate on their own, the need for innovation in process solutions is important.

In this case of India salary-based benefits, it would be impossible to push an employee promotion or data change process to managers where they would be required to manually select several pay components and determine the correct value.

Therefore, using the SuccessFactors business rule tools, the ability to create automated lookups and default values removes the need for user intervention.

The use of events directly linked to pay grade changes and associated parameters can enable the necessary automation and salary updates.

While this solution is offered to a specific client, the tools and tables can be used in common with other India compensation solutions.

Compensation Statements

In provisioning a full Employee Central (EC) based India pay component solution, this same data can be used to provide a Compensation Statement following the completion of the Compensation Review.

There can be variations in the processes used to facilitate the data required for the compensation statement, but this is the process used for this Energy industry client. Though the value of this type of process can apply to any client with multiple country/language/employee group frameworks where statement variants may be needed.

Compensation Statement Generation Process for India

Example Statement below based on SuccessFactors Store Template

Other Variants on the Process

While the process above details a specific process for India, the same templates, rules and processes can be used for building complex pay scale rules, large country with multiple pay jurisdictions (e.g. China/US with several city rules) or other countries that use complex salary constructs.

About Cognizant SAP Practice

As an SAP Global Strategic Services Partner for over 15 years, Cognizant helps clients achieve unparalleled performance through deep industry expertise in SAP technologies, SAP ERP / SuccessFactors based HCM services. As a testimony to our leadership in both SAP and cloud technologies, we were recognized as a Microsoft Partner of the Year 2020 for SAP on Azure and as Leaders in the 2021 Nelson Hall SAP Cloud Migration Services survey. Finalist in SAP Pinnacle Awards 2023 in the Business Process Transformation category. SAP Concur Distinguished Partner Award Winner 2022

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About Cognizant SAP HXM & Practice

To learn more about the Cognizant SAP SuccessFactors, contact:

Steve Norris

Head of UK SAP HCM Competency Stephen.Norris@cognizant.com

SAP HCM Web page

https://www.cognizant.com/us/en/services/enterprise-platform-services/sap-solutions/hxm-services

About Cognizant

Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build, and run more innovative and efficient businesses.

Headquartered in the U.S., Cognizant is ranked 194 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.

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