1. Using Common Features for HCM
  2. Calculate Values Defined by Criteria

Calculate Values Defined by Criteria

Use the Values Defined by Criteria task to calculate or retrieve values based on one or more conditions. You can use values defined by criteria in rate definitions. You can also use value by criteria definitions in any formula used for validation.

If you use a third-party payroll product and want to extract the salary rate details, use the Generate HCM Rates process to calculate rate values. The Generate HCM Rates process is primarily used to calculate derived rate values, such as those which sum multiple salary components. However, it's also used to process primary rates, as you may define rate definitions which calculate values that are different from those stored on an element entry.

Note:

The values that the Generate HCM Rates process creates are stored on a rates table. You can extract this information using the HCM Extract tool to send to your third-party payroll providers.

Use these examples to understand how you can calculate values defined by criteria for these elements of payroll.

Annual Salaries

You can calculate annual salaries for employees based on their jobs. For example:

  • If the employee is a Consultant, pay 45,000.

  • If the employee is a Senior Consultant, pay 55,000.

  • If the employee is a Principal Consultant, pay 65,000.

Note:

If the criteria that you have set up doesn't cover all the conditions, define a default criteria condition.

Bonus Payments

You can choose to calculate bonus payments for employees that are weighted by their location. A more complicated scenario would be to pay bonuses based on an employee's department and years of service.

  • To weight a bonus payment by location, you could set up these criteria:

    • For employees working in London, pay a 15 percent bonus.

    • For employees working in Manchester, pay a 13 percent bonus.

    • For employees working in Southampton, pay a 9 percent bonus.

    • For all other employees, pay a 5 percent bonus.

  • To pay a bonus based on department and years of service, you could set up these criteria:

    • If an employee working in sales has less than or equal to 5 years of service, pay a 2,000 bonus.

    • If an employee working in sales has less than or equal to 10 years of service, pay a 5,000 bonus.

    • If an employee working in sales has greater than 10 years of service, pay a 9,000 bonus.

    • For all other employees working in sales, pay a 7 percent bonus.

Pension Contributions

Your pension plan may have rules that limit contributions based on an employee's job. For example, in this scenario you could set up these criteria:

  • If an employee is a Consultant, limit maximum contributions to 2,500.

  • If an employee is a Senior Consultant, limit maximum contributions to 7,500.

  • If an employee is a Principal Consultant, limit maximum contributions to 12,500.

  • If an employee is a Manager or higher, limit maximum contributions to 14 percent of pay.

Hourly Rates

In the United States, labor law mandates to pay a higher rate when a locality's minimum wage is greater than the state or federal minimum wage. To fulfill this requirement, use the Values Defined by Criteria task to set up pay rates that a worker's state, county, and profession determines.

In this example, you could set up criteria for these scenarios:

  • Pay carpenters working in City 1 in County 1 greater than or equal to the rate of 15 per hour.

  • Pay carpenters working in City 1 in County 2 greater than or equal to the rate of 17 per hour.

  • Pay carpenters working in City 1 in County 3 greater than or equal to the rate of 19 per hour.

  • For all other workers, pay rate of 12 USD per hour, the prevailing state wage for laborers.

Related Topics