Salary and Grade Related Pay and Progression

Grades and Their Relationship to Pay

You compensate an employee by processing an individual RPA action such as an Appointment or Promotion action, or when you process a mass action such as a Within-Grade-Increase or annual pay adjustment. Pay calculations references the employee's pay plan, grade, and step information as well as other factors, such as the pay rate determinant and duty station

See: Pay Calculations on an RPA, Workforce Sourcing, Deployment, and Talent Management Guide

Supported Pay Tables and Pay Plans

The pay system or pay schedule determines an employee's compensation and sets the employee's rate of basic pay. Oracle US Federal supplies standard and special rate tables commonly used by most federal agencies, including:

See: Grades and Pay Structures

The application also supports FWS pay calculations and supplies FWS equivalent pay plan and grade combinations. You can define your own agency-specific pay tables and pay plans, and also extend the existing grade and step values.

See: Set up Pay Plans, Grades, and Compensation

Updating Employee and Position Records for Pay Table Changes

When the Office of Personnel Management (OPM) or an agency issues new pay tables, you can move employees from their current pay table to the newly authorized pay table.

See: Moving Employees to New Pay Tables

For special rate tables or special rate pay plan, grade, and step combinations that terminate under the Federal Workforce Flexibility Act, you can process a mass action that updates the affected employee and position records.

See: Processing a Special Rate Pay Table Change

Key Concepts

To get the most out of the compensation and benefits functionality of Oracle HRMS, you need to understand the following key concepts.

Grades and Pay Solutions

Grades and Pay Structures

When the application calculates the pay for a Request for Personnel Action (RPA), it references the pay plan, grade, and step information as well as other information, such as the pay rate determinant and duty station.

See: Pay Calculations on an RPA, Workforce Sourcing, Deployment, and Talent Management Guide

You specify grade and pay plan information when you create a position, and you specify the step information when you appoint someone using an RPA (Request for Personnel Action). The number of steps depends upon the pay plan; for example, Pay Plan GG has a step range of 01-10.

The application comes with predefined pay tables and pay plans, grades, and steps used by most federal agencies. The following list describes the standard and special rate tables supplied by Oracle US Federal HR:

The application also supports FWS pay calculations and supplies FWS equivalent pay plan and grade combinations.

You can define agency specific pay tables and pay plans, and indicate whether the application should process Within-Grade-Increases for your agency specific pay plans. You can also extend the grade and step values, if your agency uses other grades and steps.

See: Set up Pay Plans, Grades, and Compensation

Setting up Pay Plans, Grades, and Compensation

If you have agency-specific pay plans, you can add them to the application, and then process RPA actions that use these pay plans for pay calculations.

To set up pay plans and valid grade combinations:

  1. Add a Pay Plan

  2. Add Grades

  3. Add Steps

  4. Associate Pay Plans and Grades

  5. Set up Pay Tables

  6. Enter Pay Values

  7. Name Pay Tables

To associate grades with compensation

  1. Add the pay plan.

    See: Add a Pay Plan

  2. Review the values for grades or levels. Add new ones if needed.

    See: Add Grades

  3. Review the values for steps or rates. Add new ones if needed.

    See: Add Steps

  4. Associate the pay plan and grade.

    See: Associate Pay Plans and Grades

  5. Create a pay table using the Table Structure window.

    See: Set up Pay Tables, User Defined Tables, Configuring, Reporting, and System Administration Guide

  6. Enter pay values using the Table Values window.

    See: Enter Pay Values

  7. Name pay tables using the Table Values window.

    See: Name Pay Tables

Adding a Pay Plan

If you have agency specific pay plans, you can add them to the system. The Federal Maintenance Pay Plans form lists the predefined pay plans. You use this form to:

To add a pay plan:

  1. In the Pay Plan window, insert an empty row by creating a new record.

  2. In the Pay Plan field, enter the pay plan code assigned to the pay plan by the approving agency.

  3. In the Description field, enter the name of the pay plan.

  4. In the Equivalent field, enter the equivalent OPM plan. You may only choose Federal Wage (FW) or General Schedule (GS).

    The Equivalent field is used for pay plans that include automatic WGIs. When you enter your pay plan and associate an equivalent pay plan, the automatic WGI process recognizes the pay plan and processes WGIs for eligible employees assigned to it.

  5. In the Maximum Step field, enter the number of steps for that pay plan.

    The number of steps sets the ceiling for automatic WGIs.

  6. Choose WGI Enabled to have the system include the pay plan in the automatic WGI process.

    Note: If you are adding a pay range pay plan, do not choose this option. You must manually process a 894 Pay Adjustment RPA for an employee assigned to pay-range positions when that person is entitled to a pay adjustment.

  7. Save your work.

Setting up Pay Tables

A pay table can include one or more pay plans. For example, the Oracle Federal Standard Pay Table includes several pay plans.

You create your agency-specific basic and special rate tables in each business group that requires the table. There are two types of table structures, one where you designate matching values for the steps for each pay plan and grade combination, and the other where you specify a range of pay for each pay plan and grade combination.

Step Tables

You set up user tables in the Table Structure window.

To build a pay table for pay plan, grade, and step values

  1. Set your effective date to the date from which you want the table's row labels to take effect.

  2. In the Name field, enter the name of the pay table using the naming convention described in Naming Pay Tables.

    Note: Do not duplicate the predefined table names or change their values. The system uses these for pay calculations. Table names must start with the four-digit pay table ID number.

  3. In the Match Type field, enter Match.

  4. In the Key Units of Measure field, enter Number.

  5. In the Row title field, enter Grades.

  6. Save your work.

    Column setup

  7. Choose the Columns button. In the Names field, enter each step that applies to the pay plan. Step values must be two digits. (Insert a zero before the number for single-digit steps, such as 00, 01, 02.)

    Row setup

  8. Choose the Rows button. In the Exact field, enter the pay plan and grade combinations, such as AL-01, AL-02. Remember to:

    • Follow the exact format: pay plan hyphen grade

    • Do not insert spaces

    • Use the pay plan code you entered in the Pay Plan form

    • Use two digits for grades (Insert a zero before the number for single-digit grades, such as 00, 01, 02.)

    Note: Make sure that you enter the combination correctly; otherwise the system won't find the pay table when performing pay calculations.

  9. Enter a start date early enough to handle any historical information you want to enter.

  10. Save your work.

  11. Repeat these steps for each step in your pay plan.

  12. Enter the pay values for the pay plan/grade combinations. See Entering Pay Values

    Pay Banding Tables

    The application provides a pay-for-performance system for Senior Executive Service (SES) pay tables. You can set up tables for your agency's pay banding plans in the Table Structure window.

    To build a pay table for pay banding or pay range pay plans:

  1. Set your effective date to the date from which you want the table's row labels to take effect.

  2. In the Name field, enter the name of the pay table using the naming convention described in Naming Pay Tables.

    Note: Do not duplicate the predefined table names or change their values. The system uses these for pay calculations. Table names must start with the four digit pay table ID number.

  3. In the Match Type field, enter Range.

  4. The Key Units of Measure automatically becomes Number.

  5. Enter the row label as the Row Title, such as Salary.

  6. Save your work.

    Column setup

  7. Choose the Columns button. Enter the pay plan and grade combinations, such as AL-01, AL-02, for the table columns in the Name field. Remember to:

    • Follow the exact format: pay plan hyphen grade

    • Do not insert spaces

    • Use the pay plan code you entered in the Pay Plan form

    • Use two-digits for grades (Insert a zero before the number for single digit grades, such as 00, 01, 02.)

    Note: Make sure that you enter the combination correctly; otherwise the application will not find the pay table when performing pay calculations.

    Row setup

  8. Choose the Rows button. In the Sequence field, you can optionally enter a number for each row label to determine the order in which it appears on a list in the Table Values window. Logical sequencing of row labels helps users enter table values rapidly and accurately.

  9. In the Lower Bound row, enter the minimum amount for the pay range for that pay plan and grade level.

  10. In the Upper Bound row, enter the maximum amount for the pay range for that pay plan and grade level.

  11. Enter a start date early enough to handle any historical information you want to enter.

  12. Save your work.

  13. Repeat these steps to enter pay ranges for each pay plan/grade level combination in your pay plan.

Managing Overlapping Range Values

When entering row values, you cannot have overlapping values in different columns. To manage overlapping ranges, review the pay ranges for your grade levels and note where the amounts overlap. Subdivide the pay range into sequential ranges that you can enter on separate rows for each column.

For example, if you have three columns representing your pay plan and grade combinations (15800-23100, 18100-26399, and 20500-30799), you would first determine the values that overlap the first and second columns (18100-23100), and the second and third columns (20500-26399).

You would then subdivide the overlapping amounts into smaller ranges. For example, for the first column 15800-23100, you would enter row amounts of: 15800-18099, 18100-20499, and 20500-23100. For the next column 18100-26399, you would enter row amounts of 18100-20499 20500-23100, (repeating the same range as you had in the previous column), 23101-23599, and 23600-26399. For the final column 20500-23100, you would enter row amounts of 20500-23100, 23101-23599, and 23600-26399 (repeating the ones from the previous column), and 26400-27099, 27100-30799.

Entering Pay Values

A pay table can include one or more pay plans. For example, the Oracle Federal Standard Pay Table includes several pay plans.

You create your agency-specific basic and special rate tables in the Table Structure window. You enter and maintain the pay values in the Table Values window.

To enter the pay values

  1. Open the Table Values window.

  2. In the Table field, query the table you created.

    The application displays the Key Units of Measure and the Column values.

  3. In the Column Name field, choose the step for which you want to enter the values.

  4. In the Value region:

    • In the Exact field, choose the pay plan/grade.

    • In the Value field, enter the dollar amount.

      The values may be in whole dollars or dollars and cents. Do not include a dollar sign.

    • In the Date field, enter a start date early enough to handle any historical information you want to enter.

    Note: Enter the same effective date for all the values in the table so that the entire pay table has the same effective date.

  5. Save your work.

Naming Pay Tables

The product includes the following pay tables:

Naming a Pay Table

  1. Enter a pay table name in the Table Structure window, making sure that the initial characters follow this naming convention:

    • Pay table ID

      The pay table identifier is the four digit number that references a specific pay table assigned by the OPM or Department of Defense. You choose the pay table ID in the US Federal Valid Grade Position Extra Information.

    • Space

    • Federal

    • Space

    • Agency

    • Pay table name

  2. Enter a name that makes the table more meaningful, such as the occupation series or job.

    Note: If you are adding a Special Rate Pay Table, include the words 'Special Rate Pay Table' in the name. (The words are case sensitive.) Do not use Oracle as part of your pay table name, because it is reserved for the predefined pay tables.

    For example, if you have a Special Rate Pay Table 4444 that covers administrative employees, you would name the table: 4444 Federal Agency Administrative Special Rate Pay Table (GS) No. 4444.

Running the Federal Valid Combinations Process

The Create Federal HR Valid Combinations for the Grade KF is a Concurrent Manager process that supplies the predefined valid grade and pay plan combinations for the grade key flexfield. The system administrator runs this process during implementation.

Use the Submit Request window.

To run the Valid Combinations process

  1. Select Create Federal HR Valid Combinations for the Grade KF from the Name field

  2. Position your cursor in the Parameters field. In the Parameters window, select the Business Group ID from the list of values.

  3. Choose the Submit button.

Defining a Salary Basis

Use the Salary Basis window to define a salary basis for each salary element to be used for salary administration. This establishes the duration for which a salary is quoted, for example, hourly, monthly or annually.

Additional Information: In US Federal HR, the HR specialist administers salary through Request for Personnel Actions. The product comes with predefined salary bases of per annum and per hour.

To define a salary basis

  1. Enter an appropriate name for the salary basis.

  2. Select a pay basis, such as Annual or Hourly. For example, select Monthly Salary if you are using the predefined Regular Salary element in the US.

    If you selected Annual or Monthly, Oracle HRMS identifies the number of payments and enters 1 or 12 in the Pay Annualization Factor field. You can change this value, if required.

    If you selected Hourly, the Pay Annualization Factor field is blank. Enter your own value, such as 2080 (40 hours * 52 weeks) to enable the Salary Administration window to display an annual salary from the hourly rate.

    If you select Period, leave the Pay Annualization Factor field blank, Oracle HRMS uses the payroll period of your employee as the annualization factor.

    Note: The pay basis is for information only. For example, to enable you to compare salaries.

  3. Select the name of the salary element and input value associated with this salary basis. For example, if you are using predefined elements in the US, select Regular Salary and the input value Monthly Salary, or Regular Wages and the input value Rate.

  4. Select a grade rate to associate with the salary basis, if required.

    Oracle HRMS uses the grade rate to validate your salary proposals. You receive a warning if the salary you enter for an employee is not within the grade rate range defined for the employee's grade.

  5. Select the grade rate basis (Hourly, Monthly, Annual, or Period) for the rate if you selected a grade rate. For example, if your grade rate specifies the valid monthly salary ranges for each grade, select Monthly Salary in the Grade Rate Basis field.

    If you selected Annual or Monthly, Oracle HRMS identifies the number of payments and enters 1 or 12 in the Grade Annualization Factor field. You can change this value, if required.

    If you selected Hourly, the Grade Annualization Factor field is blank. Enter your own values, if required.

    If you selected Period, leave the Grade Annualization Factor field blank, Oracle HRMS uses the payroll period of your employee as the annualization factor.

    Note: This is for information only. For example, to enable you to compare salaries within grades.

  6. Save your changes.

Adding Grades

The product comes with an extensive list of values for grades and steps. There are 66 grades (01-66) as well as several letter combinations (AA, BB, CA, CC, CM, DD, EE, MC, OC).

If your pay plan requires grade values other than the supplied ones, you can enter them using the Lookup Values window.

Note: The pay plans for Administrative Law Judges (AL) and Executive Pay (EX) are set up with numeric step designations. However, when the system prints the Notification of Personnel Action, it replaces the numeric steps for AL pay plans with alphabetical steps (A-L), and the steps for EX pay plans with roman numerals.

To add grades or levels:

  1. Open the Lookup Values window and query the Lookup Type GHR_US_GRADE_OR_LEVEL.

  2. Insert a new record.

  3. Enter the grade using two or more digits, such as 01, in the Code, Meaning, and Description columns.

  4. Choose Enabled.

  5. Enter a start date early enough to handle any historical information you want to enter.

    • In the Date field, enter a start date early enough to handle any historical information you want to enter.

    Warning: Enter the same effective date for all the values in the table so that the entire pay table has the same effective date.

  6. Save your work.

Adding Steps

The product comes with an extensive list of values for grades and steps. There are 88 steps (01-88) as well as entries for designating no step (99-No Step) or not applicable (00-Not Applicable, No Step).

If your pay plan requires grade or step values other than the supplied ones, you can enter them using the Lookup Values window.

Note: The pay plans for Administrative Law Judges (AL) and Executive Pay (EX) are set up with numeric step designations. However, when the system prints the Notification of Personnel Action, it replaces the numeric steps for AL pay plans with alphabetical steps (A-L), and the steps for EX pay plans with roman numerals.

To add steps or rates:

  1. Open the Lookup Values window and query the Lookup Type GHR_US_STEP.

  2. Insert a new record.

  3. In the Code field, enter the Lookup using two or more digits, for example 01.

  4. In the Meaning field, enter the step or rate name.

  5. In the Description field, enter your descriptive text.

  6. Choose Enabled.

  7. Enter a start date early enough to handle any historical information you want to enter.

  8. Save your work.

    Note: Predefined grades and steps cannot be deleted. It is also recommended that you do not end date them. You can delete or end date new grades that you add to the system.

Associating Pay Plans and Grades

During implementation, your system administrator runs the Create Federal HR Valid Combinations concurrent manager process to install the predefined grades and pay plans.

To create new valid pay plan and grade combinations, for each pay plan you specify the associated grades or levels. These combinations are the values that appear in the Valid Grade and Target Grade segments of the US Federal Valid Grade Info Position Extra Information.

Use the Grade window.

To associate pay plans with grades

  1. Enter your grades in sequence number order.

    The sequence number can be any number from 1 upwards. The number indicates the rank order of the grade; 1 indicates the highest grade. This is the sequence in which the grades appear to users in lists of values.

  2. Click in the Name field to display the US Federal Grade flexfield. Here you enter the pay plan, grade or level.

  3. Enter a start date early enough to handle any historical information you want to enter.

  4. Repeat the above steps until you have entered all the grades in the pay plan.

  5. Save your work.