Considerations for Using Salary Bases with Simple Components versus Rate Components

When you configure salary bases, you can use simple or rate components to itemize salary adjustments.

The simple components that you can configure come from lookups and their values can be either an amount or a percentage. The rate components come from rate definitions and can be element, derived, grade rate, or value by criteria rates.

Consider these key differences when selecting the salary basis type.

Criteria	Simple Components	Rate Components
Level of configuration effort	Simple	Medium to complex
Supported requirement complexity	Simple to medium	Medium to complex
Component creation	ORA_CMP_SIMPLE_SALARY_COMPS lookup type that shows on salary bases in component drop-down lists	Rate definitions that show on salary bases in component drop-down lists
Component types	User entered amount User entered percentage Fixed amount Fixed percentage Progression grade ladder based Overall salary	Element amount rate Element factor rate Value defined by criteria rate Derived rate Grade rate Retained pay
Element entry creation for salary	Element created for the overall salary component, with the provided value	Element created for the overall salary rate Value isn't stored for the element created for the overall salary
Correct or update existing salaries when component calculation logic changes	No	Yes, use the Run Rates-Based Salary Process process
Post salary change proposals automatically	No	Yes, use the Run Rates-Based Salary Process process
Wait for salary change proposal reviews before posting	No	Yes, use the Run Rates-Based Salary Process process
Enter or fix components	Yes	Yes
Values can be amount or percentage	Yes	Yes
Calculated value can be overridden	No	No
Default component	No	No
Default component using logic	No, you can default only a fixed value	Yes, using value by criteria or another rate definition
Calculate component value based on other attributes, such as grade or location	No	Yes, see Database Items for Use in Salary Value by Criteria Rate Definitions
Include components that don't affect overall salary	Yes	Yes, you still need to add these rates to the overall salary rate definition and deduct them
Component calculations can include other component values	Limited	Yes
Define valid component value ranges	No	Yes
Components can be optional	Yes, you can carry forward an optional component for all later changes or applicable for just the single proposal	No
Accept overall salary and distribute that into other components (India basket of allowance sort of requirements)	No	Yes
FTE won't affect the component value	No	Configurable
Define rounding rules per component	No, only at the salary-basis level	Yes
Define decimal display per component	No, only at the salary-basis level	Yes
Vary currency or frequency per component	No	Yes
Where frequency is configured	Salary basis	Overall salary rate definition using a custom periodicity fast formula
Can make date-effective changes to components	No	Yes, but not recommended
Can add or remove components for a salary basis that's in use	Not recommended	Not recommended
Can use in offers and workforce compensation	Yes	Yes
Grade step progression processes can change salary	Yes	No
Database items available for external interfacing	Yes, ORA_CMP_ASSIGNMENT_SALARY_SIMPLE_COMPONENT_UE and ORA_CMP_ASSIGNMENT_SALARY_SIMPLE_COMPONENT_RGE_UE	Yes, ORA_CMP_ASSIGNMENT_SALARY_RATES_UE and ORA_CMP_ASSIGNMENT_SALARY_RATES_RGE_UE
Database view	CMP_ASG_SALARY_SIMPLE_CMPTS_V	CMP_ASG_SALARY_RATE_COMPTS_V
Supports REST, HCM Data Loader, and HCM Spreadsheet Data Loader	Yes	Yes
Limitations	Lookup tags aren't considered; all components configured for the salary basis show when proposing salary	See the limitations section, for example, a rates-based salary needs to have all future salary bases also be rates-based
Can use the Salary History action	Yes	No