Considerations for Using Salary Bases with Incremental Components versus Simple Components

When you configure salary bases, you can use incremental or simple components to itemize salary adjustments. The incremental and simple components that you can configure come from lookups and their values can be either an amount or a percentage.

Consider these key differences when selecting the salary basis type.

Criteria	Incremental Components	Simple Components
Source of component names	CMP_SALARY_COMPONENTS lookup	ORA_CMP_SIMPLE_SALARY_COMPS lookup
Component types	None	User entered amount User entered percentage Fixed amount Fixed percentage Overall salary Progression grade ladder rate
Input type	A Person can enter an amount or a percentage against the incremental component.	When allowed, a person can enter an amount or a percentage. The percentage applies to the amount of another, specified simple component. A person can also enter the adjustment amount or percentage to apply to the previous simple component value.
Default value	None	You can configure the simple components to use static default values or values provided by progression grade ladder rates. You can even configure the components to use default values calculated by applying percentages to other specific simple components. For example, you can calculate a car or housing allowance as a percentage of a base salary.
Amount or percentage	Can be either
Adjustment history	The adjustment applies to only the current salary record.	Adjustments apply to the current and future salary records.
	Example scenario: In 2001 the worker gets a merit component of $100. In 2002, they get a $10 increase and in 2003, they get a $15 increase.
	Results: Their salary history shows the incremental merit component amount of $100 in 2001. It shows the adjustment amounts of $10 in 2002 and $15 in 2003. Their history doesn't show the calculated amount of $110 in 2002 or $125 in 2003.	Results: Their salary history for the simple merit component shows the amount of $100 in 2001, $110 in 2002, and $125 in 2003. The history of a simple component is preserved when the salary basis changes and both bases use simple components of the same component type.
Visibility of previous amount	None. People proposing or reviewing proposed salary changes can’t see the previous amounts or percentages.	People proposing and reviewing proposed salary changes can see previous amounts or percentages.
Effect of full-time equivalent (FTE)	None	Each value gets adjusted for FTE.
Effect on overall salary	The individual values are added to the previous salary amount to decide the new overall salary.	You can specify whether the individual values add to or subtract from the overall salary amount. You can also configure individual values to be independent of the overall salary.
Required or optional	You can configure a fixed set of incremental components that always show when people propose salary changes. Or, you can let them select the incremental components they want to use in their salary proposal, if any.	You specify whether they're optional. People need to provide values for any required simple components when they propose salary changes. And, they can select the optional components they want to include, if any.

Grade Step Progression

Consider these key differences when selecting the salary basis type of a salary basis used in grade step progression:e

Criteria	Incremental Components	Simple Components
Populate salary from progression grade ladder	No	Yes when the simple component type is Progression grade ladder rate
Grade step progression batch processes	Not available	Available

Integration

Consider these key integration differences when selecting the salary basis type:

Criteria	Incremental Components	Simple Components
Workforce Compensation	Available
Total Compensation Statements
Oracle Transactional Business Intelligence (OTBI) reports	Can include
Global Payroll	Available
Supported flows	HR actions, Offers, Change Salary, Salary History
Approval payload	Attributes available
Notifications shows component break up	GHR actions, Offers, Change Salary, Salary History	Change Salary, Salary History Also available in GHR data models
HCM Data Loader Salary Basis and Salary Allocation objects	Supported
HCM Extracts	User entities (UEs) and database item (DBI) groups available
Global transfer	Supported when you can let HCM specialists and managers select the incremental components to use in their salary proposal, if any	Supported
REST services	Supported
Download salaries	Supported	Not supported
Database view	CMP_ASG_SALARY_COMPONENTS_V	CMP_ASG_SALARY_SIMPLE_CMPTS_V
Audit	Available
Autocomplete	There's no new object available to set defaults for either incremental or simple component values. You can default only the salary basis, not other attributes, such as component amounts or percentages.