AFB Compensation Elements
This section discusses:
AFB earning elements.
The AFB thirteenth payment.
The AFB diploma premium.
The AFB collective agreement stipulates that the annual salary for a payee must be paid in 12 monthly payments, along with an additional amount for the thirteenth month, which is usually paid during the December payroll. However, with the agreement of the work council, companies can pay the annual salary by making 12 identical payments (rather than using the thirteenth amount).
The annual salary can be managed by creating either:
one rate code for twelve months and one rate code for the thirteenth month, or,
one rate code for thirteen months, or
one rate code for twelve identical monthly payments.
If the employee was hired during the current year, or leaves before December, the thirteenth amount is calculated in proportion to the time worked using the formula: annual basic salary * 12 / 13 / calendar days of the year.
The daily rate is also calculated in proportion to the time worked for part-time payees.
|
Earning Element |
Description |
|---|---|
|
AFB SAL 13 M |
Used to calculate 12 payments when a payee receives 13 payments. |
|
AFB SAL 13EM |
Used to calculate the thirteenth payment. |
|
AFB SAL 12M |
Used if the payee receives 12 identical amounts. |
Note: These earnings are automatically segmented and prorated when they are assigned to payees on the Element Assignment by Payee or Payee Assignment by Element pages and the assignment period covers only a portion of the pay period.
PeopleSoft does not maintain these earnings. The calculation rules and proration rules have been defined by PeopleSoft, but you may change them to fit your own requirements.
Note: One instance in which you might want to modify the proration rules is for the proration applied to the calculation of the thirteenth month. The formula ABS FM BASE 13EME calculates the amount of the thirteenth-month payment.
Note: The PeopleSoft system does not check whether earnings are below the statutory minimum. Statutory minimum earnings are defined by the collective agreement according to the defined category of the employee. The PeopleSoft system also does not check whether earnings paid comply with the salary scale stipulated by the collective agreement.
The extra earning element for the thirteenth payment—AFB SAL 13EM—is triggered by the generation control element AFB GC 13EME MOIS when the payee leaves or when the thirteenth payment is due. Payees choose in which month they want to receive the payment.
The earning is prorated based on calendar days, calendar half days, and hours worked in the year. :
|
Accumulator |
Description |
|---|---|
|
AFB AC JR CAL AN |
Stores the number of calendar days of the year. This accumulator is populated only by the calendar days included in the segment period paid. |
|
AFB AC JR NPAY AN |
Stores the number of calendar days unpaid. Populate this accumulator based on how your organization defines an unpaid day. |
|
AFB AC JR DPAY AN |
Stores the calendar days half paid. Populate this accumulator based on how your organization defines a half-paid day. |
|
AFB AC HR THEO |
Populated by the number of theoretical hours in the segments that make up a year. |
|
AFB AC HR ABS AN |
Stores the number of hours of absences. |
The accumulators in the preceding table are used in the formula AFB FM BASE 13EME to calculate the thirteenth payment using a proration factor based on the amount of time the payee works for the company during the year.
The payment date is stored in the variable AFB VR DAT PAY 13M. The payment of the thirteenth month is triggered when the date that you indicate in this variable is included in the segment period.
A payee may be granted an extra earning, called a diploma premium. The earning, PRM DIPL AFB, is entered using positive input and is subject to contributions and income tax.
Note: All elements described here are delivered as sample data and are not maintained by PeopleSoft. You may modify the rules for these earnings as required by your company's needs. The only exception is the earning Diploma Premium, which is maintained by PeopleSoft.