Salary Amount Is Determined by Rates

With this type of salary basis, HCM specialists or managers itemize the salary adjustment using Oracle Fusion Cloud Global Payroll rate definitions. The overall salary is calculated by summing and subtracting other rates included in the salary basis.

Rates can be entered by users or calculated by multiplying a factor against another rate value. They can also be derived using value by criteria or the progression grade ladder. The rates included in the salary basis can have default values. They can also have frequencies and currencies that are different from those for the overall salary.

Caution: Don't include formula-based rate definitions and rate contributors in a salary basis. Also don't use formulas for validation or to default values. Fast formula database items can't access data proposed in flows and not yet saved to the database.

You create salary basis rate components using the payroll Rate Definitions quick action for My Client Groups. Be sure to link a rate definition to only one salary basis to avoid issues when moving a worker to another basis.

Examples

Here, a person's overall salary is calculated by summing three other rate components. Two of the components have the same frequency as the overall salary component, and one component has a different frequency.

Salary Component	Frequency	Component Value Source	Example
Annual Base	Annual	User entered	40,000
Allowance 1	Annual	User entered	20,000
Incentive	Monthly	Defaulted from an element entry	1,000
Overall Salary	Annual	Calculated with this expression: `Annual Base + Allowance 1 + (Incentive x 12)` `40,000 + 20,000 + (1,000 x 12)` `40,000 + 20,000 + 12,000`	72,000

Here, a person's overall salary is calculated by summing two other rate components. Both components have the same frequency as the overall salary component.

Salary Component Frequency Component Value Source Example

Annual Base Annual User entered 40,000

Housing Allowance Annual Calculated with workers at headquarters getting 50 percent of their annual base and all others getting 40 percent 20,000

Overall Salary

Annual

Calculated using this expression: Annual Base + Housing Allowance

40,000 + (40,000 x .50)

40,000 + 20,000

60,000

Here, a person's overall salary is calculated by summing four other rate components. One of the components has the same frequency as the overall salary component, and the other three components have a different frequency.

Salary Component	Frequency	Component Value Source	Example
Annual Base	Annual	User entered	48,000
Housing Allowance	Monthly	Calculated as 50 percent of monthly base `(Annual Base / 12) x .50` `(48,000 / 12) x .50` `4,000 x .50`	2,000
Special Allowance	Monthly	Defaulted from an element entry	1,000
Variable Incentive	Monthly	Specified factor to apply to the Annual Base component, the calculated value is loaded into an element entry	1%
Overall Salary	Annual	Calculated with this expression: `Annual Base + (Housing Allowance x 12) + (Special Allowance x 12) + (Variable Allowance x 12)` `48,000 + (2,000 x 12) + (1,000 x 12) + (80,000 x .01)` `48,000 + 24,000 + 12,000 + 480`	84,480