Grade Rates with Hourly Amounts

You can use this recommended setup for grade rates and salary for workers who are paid at an hourly rate, including those on zero-hours contracts for accurate reporting of notional and actual salary in the Salary History file.

Create a Grade

  1. Use the Grades task to create a new grade. Include grade steps, grade ladder and additional MyCSP information.
  2. Create hourly grade rates to meet your requirements. (You can also do this using the Grade Rates task).
  3. Enter the details as shown:

    Grade Rate Information

    Field Description
    Rate Type Salary
    Frequency Hourly
    Annualization Factor See below
    Currency GBP

    The annualization factor converts base pay to an annual amount (52 x standard working hours).

    For example:

    52 * 40 hours per week = 2080

    52 * 37 hours per week = 1924

Create Salary Basis

To create an hourly salary basis:

  1. Use the Salary Basis task.
  2. Enter the details as shown:

    Create Salary Basis: Hourly Worker

    Field Description
    Salary Basis Type Salary amount is determined by user.
    Frequency Hourly
    Annualization Factor As specified on the grade rate, e.g., 2080.
  3. Select the Element Mapping tab to select the salary basis element details:
    Field Description
    Payroll Element Salary payroll element
    Input Value Pay Value
  4. Select the Salary Ranges tab to associate the salary basis with the previously created grade rate: