Defining Groups of Rate Codes

To set up rate code groups, use the Rate Code Groups (RATE_CODE_GROUPS) component.

This topic provides overviews of rate code groups and discusses how to create groups of rate codes.

Page Name

Definition Name

Usage

Rate Code Groups Page

COMPRT_GRP_PNL

Create groups of rate codes.

After you have defined rate codes, you can optionally set up rate code groups. Using rate code groups, you can:

  • Be specific when calculating percentage-based pay components as part of your worker compensation packages.

    For example, a worker's base compensation package may be made up of the following components: base pay, cost of living, child-care cost, and commuting cost.

  • Calculate a bonus amount based only on certain parts of a worker's compensation package, as opposed to the entire package.

    You may want to do this if a percentage-based bonus is part of a worker's compensation.

  • Bundle base-pay components that you want the system to use in its calculation, excluding other pay components.

Note: Before you can use groups of rate codes, you must select the Use Rate Code Groups check box on the HCM Options page of the Installation component.

You can associate a rate code group with a percentage rate code. If you do this, the system applies that percentage to all the rates in the rate code group; it adds the total to a worker's compensation package. If you decide not to use rate code groups, you can calculate percentage rates using a worker's entire base-pay compensation package.

When you implement a pay increase for a worker, you can specify that the worker is to receive a percentage increase of base pay, as defined in the rate code group. When the system calculates the value of the increase, its calculation is based on the different pay rates that are associated with the base-pay rate group.

You can associate a rate code group with a percentage rate code:

  • In a salary step on the Salary Step Components page of the Salary Grade component.

  • With a job code on the Default Compensation and Non-Base Compensation pages of the Job Code component.

  • At the worker level on the Job Data - Compensation page.