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.
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:
|
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:
|
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
|
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:
|
84,480 |