How Grades, Grade Rates, and Grade Ladders Work with Compensation

A grade rate can be linked to the salary basis within the salary record. In such cases, a worker's salaries are validated using the grade rate values.

For example, let's assume an assignment record for a worker indicates they're in Grade A1 with the salary of USD 40000.00:

• The grade rate that’s attached to their salary basis includes their Grade A1, and it has a minimum value of 30,000 and maximum value of 50,000.00 USD. Therefore, the salary is within the grade rate range and no warnings are issued.
• If their manager or a human resource (HR) specialist changes their salary to 55,000.00 USD, a warning is issued that the new salary is outside their salary range, because it’s higher than the maximum value.

Compa-ratios and salary range positions for workers are calculated using the minimum and maximum amounts from the grade rate.

Grade ladders are used for grade step progression processes and to default salaries from grade ladder rates.