Factor Type Salary Range Differentials That Include Lower Limits

You might have statutory limits for salaries that you need to enforce, such as salary minimums. You can enforce lower limits in factor type salary range differentials associated with salary bases.

These differential processing flows compare the processing behavior when the differential has lower limits versus when it doesn't. In this example differential profile, the Redwood Shores HQ zone has a lower limit of 160,000.

Compensation Zone	Differential Factor	Lower Limit	Frequency of Minimum Amount	Annualization Factor for Minimum Amount
Redwood Shores HQ	1.5	160,000	Annually	1
Bakersfield Branch Office	0.5	80,000	Annually	1

The base range of the salary basis that includes this differential profile is 100,000 to 200,000. Normally, the adjusted ranges for the Redwood Shores HQ zone would be 150,000 to 300,000 after applying the 1.5 differential. But, this differential has a lower limit of 160,000 and that minimum overrides the 150,000 minimum. So the effective salary range becomes 160,000 to 300,000. If the differential profile didn’t have any lower limit, the adjusted base range would remain 150,000 to 300,000.