Pay Grade

Enter a code that designates a category for grouping employees according to pay ranges. For each pay grade, you enter a pay range that includes a minimum, a midpoint, and a maximum pay rate. The system uses these pay ranges to calculate compa-ratios for the employees that you assign to pay grades. After you enter a pay grade for an employee, the system displays either an error or a warning message if you enter a rate for the employee that is not within the pay range for the employee pay grade.

To set up pay grades, use Pay Grades by Class (P082001).

If you set up the system to use rates in the Pay Grade Step table as the default pay rates for employees, changing an employee pay grade step causes the system to automatically update these fields:

• Salary

• Hourly Rate

• Hours per day

• Hours per year

• Days per year