Salary Amount Is Determined by Simple Components

With this type of salary basis, HCM specialists or managers itemize salary changes using simple components. For example, this $100 salary is made up of four itemizations.

Donut graphic showing the 4 itemizations that make up the $100 salary. The itemizations are a $10 special allowance, $40 base salary, $30 housing allowance, and a $20 transport allowance.

Each component has its own characteristic and change history, and affects salary in a different way. For example, a component can be a fixed or user-enterable amount. Or it can be a fixed or user-enterable percentage of another component. And you can add the component to the overall salary, subtract it from the overall salary, or make it independent of the overall salary.

Tip: You should use the simple components on responsive pages with salary information. Don't use classic pages to create, change, or delete salary that uses simple components. You can use classic pages to view simple component information.

Example

Here's a person's initial salary determined by three simple components and how their manager uses theses components to adjust their salary a year later. On their first salary record, the HCM specialist defines their 25,000 USD salary, as shown here.

Component Amount
Base 20,000
Merit 5,000
Location 3,000

The next year, their manager adjusts their salary to 32,000 USD, as shown here.

Component Amount

Adjustment Amount

Adjustment Percentage

Prior Value

Base 25,000 5,000 25 20,000
Merit 5,000 0 0 5,000
Location 2,000 -1,000 -33.33 3,000