How Grades and Grade Ladders Work with Payroll

Payroll elements can reference grades in the eligibility criteria.

For example, let's assume you want to process a bonus for all workers who are at grade level A2. To accomplish this, you would create an earnings element for the bonus and specify A2 for the grade in the eligibility criteria. The result of this setup, when combined with additional eligibility criteria that may be applied, is that when payroll is processed, workers who are at grade level A2 and who meet the additional eligibility criteria would receive the bonus.

You can also create payroll rate definitions using the grade details. For example, you can calculate the annual salary rate based on the grade ladder, grade, and grade step information defined for an employee.