Create a Salary Basis and Rate Definition

A salary basis determines the period in which base pay is expressed.

It specifies whether salaries can be itemized with components, and identifies any associated grade rate for salary validation. For further information on salary bases, see the chapter Base Pay in the Implementing Workforce Compensation guide on the Oracle Help Center.

Create a Salary Basis Rate Definition

Create a rate definition for the salary element:

1. Use the Rate Definition task to create a new rate definition. Click Create.
2. Enter the details as shown:

   Salary Basis Rate Definition

   FIELD	VALUE
   Category	Element
   Storage Type	Amount
   Element Name	The salary basis element you created previously
   Reporting Required	Must be selected.
   Calculate Live Rates	Selected by default.
   Returned Rate Details	Do not change.
   Contributor Type	Automatically created as Input Value.

Once before each payroll run, you must run the Generate HCM Rates Process in 'Full' mode to create entries in the Rates Values table for allowances that use rate definitions. The process interprets events such as salary increase or changes in allowance rates and calculates the new allowance amount for each proration period so that the payroll run uses the amounts stored in the Rates Values table.

For more information see the topic Generating HCM Rates: Procedure under Setting Up Pay Calculation Components in the Implementing United Kingdom Payroll guide on the Oracle Help Center.