Overview of Base Pay Management

Base pay is a person's fixed salary amount. You view and adjust this amount or any component amounts or percentages over the time the person works in your organization.

Typically, you adjust salary as part of HR actions, such as when you hire, transfer, or promote someone.

• As a line manager, you can also review and adjust base pay using the Compensation page of the My Team work area. Or you can use the Change Salary quick action.
• As a compensation manager or HR specialist, you can change salary and review proposed salary changes using the My Client Groups > Compensation work area. Or you can use the Compensation quick actions, such as Change Salary.

Salary monetary values appear by default in the currency of the element associated with the salary basis. Individual compensation award and contribution values appear by default in the currency of the element associated with the plan option. Normally, these currencies are the individual's local currency. You can also view the salary, award, and contribution currencies values in your preferred currency.

How the Salary Basis Affects Salary

Each salary record that you can manage has an associated salary basis. Here's how the configured salary basis affects what you see on the salary record.

The annualized salary that you see got calculated using the currency, frequency, and annualization factor from the salary basis. Any salary components you use to itemize salary adjustments for reports, such as merit and location, also come from the salary basis. And, the salary amount you enter is held by the payroll element associated with the salary basis. The salary basis passes that amount to payroll for processing.

Typically, you don't change salary basis associated with the salary record, but here are some examples of when you might change it:

• The person's job changes from that of an individual contributor to a manager. You change their salary basis from hourly to annual.
• A union contract amendment mandates itemizing the person's pay rate. You change their hourly salary basis that doesn't use components changes to an hourly salary basis that does.