AFB Earning Elements
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.
See PeopleSoft Global Payroll: Understanding Overrides.
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.