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This SAP article will guide you all about “How to Define Employee Subgroups in SAP” step by step with screenshots.

Define Employee Subgroups :- It is an organizational entity within an employee group which is governed by specific personnel regulations.Like Salaried,Exempt, non-exempt, Full time Salaried, Part time, hourly, piece worker, etc.

The Employee subgroup will be used in the following :- 

1. Personnel calculation rule (control whether an employee’s remuneration is calculated on a monthly or hourly basis)


2. Wage types (determine which wage types are permissible for which employee subgroups using the employee subgroup grouping for the primary wage types)


3. Collective agreement provision (you restrict the eligibility of pay scale groups, so that only certain pay scale groups are valid for specific employee subgroups)


4. Work schedules (determine which work schedules are permissible for which employee subgroups using the employee subgroup grouping for the work schedule.


5. Determine which work schedules are permissible for which employee subgroups using the employee subgroup grouping for the work schedule)


6. Appraisal criteria (set up appraisal criteria dependent on employee subgroup using the employee subgroup grouping)

Steps to Define Employee Subgroups in SAP

SAP R/3 IMG Path : - SPRO >> Enterprise Structure >> Definition >> Human Resources Management >> Define Employee Subgroup

Step 1 :- Follow the above menu path and click “Define Employee Subgroup”

Step 2 :- Double click on Employee subgroups and click on “Edit employee subgroup”

Step 3 :- Click on “New Entries” to define new employee subgroups

Step 4 :- In next screen enter the employee subgroup key and description

Step 5 :- Click on save icon to save the entries.

Now, we have successfully done with “How to Define Employee Subgroups in SAP”.

How to Define Employee Subgroups in SAP