Salary Amount Is Determined by Incremental Components
With this type of salary basis, HCM specialists or managers itemize the salary adjustment using incremental components provided by the basis. Or they select the components when changing salary. Which method they use depends on the salary basis configuration.
Caution: To determine salary amounts using grade step
progression, don't select this type of salary basis.
Only the first salary record itemizes the entire salary amount. All later salary records itemize only the adjustment amount, using percentages or amounts.
Example
On the first salary record, the HR specialist defines a 28,000 USD salary, as shown here.
| Component | Amount |
|---|---|
| Base | 20,000 |
| Merit | 5,000 |
| Location | 3,000 |
The next year, the manager adjusts that person's salary to 32,000 USD, as shown here.
| Component | Adjustment Amount | Adjustment Percentage |
|---|---|---|
| Base | 5,000 | 18 |
| Merit | 0 | 0 |
| Location | -1,000 | -0.04 |