Understanding Wage Progression
When you assign a worker to a labor agreement and bargaining unit on the Job Data - Job Labor page (JOB_LABOR) and a salary plan with wage progression rules on the Job Data - Salary Plan page (JOB_DATA_SALPLAN), you can manage their wage plan's step progression using the wage progression processes.
Wage progression is the step-by-step advancement of a worker's compensation rate from a beginning rate to one of full parity. The progression is based on a wage progression rule associated with the worker's salary plan. The rule includes step progression requirements and a rate calculation formula.
The Update Wage Progression processes gather the data required to make a decision about the worker's eligibility to advance and stores that information in the Review Wage Progression component (HR_WP_MAINT_ACTVTY). Once all of the necessary data is accumulated , the system can flag qualified workers for advancement. The system inserts a new Job Data row for the qualified workers with their new step and related wage rate. The system processes the new compensation rate in the next payroll.
If, during the calculation of a worker's new rate, they reach or exceed the maximum rate for the salary grade, the system considers them at parity for their job wage rate. In these circumstances, the system increments the worker to the next highest step for the grade and no longer includes them in the wage progression processes.