Rates-Based Salary Basis Type Introduction

You can now maintain person salary using the new rates-based salary basis type, built on the Oracle Fusion Cloud Global Payroll rates engine.

Architecture for a Rates-Based Salary Basis

The new salary basis type lets you maintain individual rate components, which can have their own characteristics, such as a periodicity and currency.

• Element rates can accept factor or amounts that are either user-entered or fixed.
• Progression grade ladder based rate definitions derive their rate value from grade or step rates defined in the progression grade ladders.
• Derived rates are calculated by adding or subtracting other rates, or multiplying other rates by a factor.
• Value by criteria rates can identify rate values based on criteria.

Each rate component can be added to the overall salary or subtracted from it, or be entirely independent.

Rates-Based Salary Basis Type That Uses Various Categories of Rate Definitions

The sequence column determines the order that the component appears on change salary pages.

Here's a simple example of salary details for someone with a salary basis that uses rates. 

• Basic salary, enterable
• Housing allowance calculated as 50% of the basic salary
• Grade based allowance calculated as $100 for IC1, $200 for IC2 and $10 for other grades
• Overall salary calculated as the sum of the preceding components

Change Salary Transaction with Rates-Based Salary Basis

This feature lets you reduce operating costs by flexibly maintaining salary in the exact way you offer it.

Steps to Enable

1. Create the appropriate payroll elements.
2. Create the appropriate value definitions by criteria.
3. Create the appropriate rate definitions.
4. Create the appropriate salary basis.
5. Associate the rates-based salary bases with the appropriate worker salaries.

Tips And Considerations

• Certain attributes of the salary basis, such as frequency and currency, are derived based on the element attached to the overall salary rate definition.
• Element rate components can have default values that apply the first time someone uses the salary basis in a salary proposal.
• Link an element to only one rate and a rate to only one salary basis. Otherwise issues can arise when a person moves from one salary basis to another.
• The CMP_ASG_SALARY_RATE_COMPTS_V database view holds the details for the rates-based salary values.
• You can’t view or manage a rates-based salary basis type salary using the Salary History action. And you can’t move a person with a rates-based salary type to a salary basis of any other type.
• Use a special set of delivered database items to work with Value by Criteria rate definitions to detect proposed data in flows, such as Hire an Employee. When you use these database items in Value by Criteria definitions, you can compute rate values on proposed attributes in the flows.

Special Set of Database Items

Attribute Name	Database Item Name	Comments
Grade	PER_ASG_GRADE_NAME
Business Unit	PER_ASG_BUSINESS_UNIT_ID
	PER_ASG_BUSINESS_UNIT_NAME
Location	PER_ASG_LOCATION_NAME
Legal Employer	PER_ASG_ORG_LEGAL_EMPLOYER_NAME
Department	PER_ASG_ORG_DEPARTMENT_NAME
Worker Category	PER_ASG_EMPLOYEE_CATEGORY
	PER_ASG_EMPLOYEE_CATEGORY_MEANING
	PER_ASG_EMPLOYMENT_CATEGORY
	PER_ASG_EMPLOYMENT_CATEGORY_MEANING
Role	PER_EXT_PER_ROLE_ABSTRACT_ROLE
	PER_EXT_PER_ROLE_DATA_ROLE
	PER_EXT_PER_ROLE_JOB_ROLE
	PER_EXT_PER_ROLE_NAME
Period of Service (seniority)	PER_ASG_REL_LENGTH_OF_SERVICE
	PER_ASG_REL_ADJUSTED_SVC_DATE
Legal Employer Level Seniority Date	PER_ASG_REL_ADJUSTED_SVC_DATE.	Returns seniority date in a legal employer (relationship seniority date).
Enterprise Seniority Date	PAYROLL_INTERFACE_ORIGINAL_DATE_OF_HIRE	Returns first original date of hire regardless of legal employer.
Legal Employer Level Hire Date	PER_ASG_REL_ORIGINAL_DATE_OF_HIRE	Returns relationship original date of hire.
Enterprise Hire Date	PER_PERSON_ENTERPRISE_HIRE_DATE	Returns earliest relationship start date, which is the first hire date regardless of legal employer.
Number of Child Dependents	PER_PER_CONTACT_DEPEN_CHILD_COUNT
	PER_PER_CONTACT_DEPEN_CHILD_COUNT_LOC
Age of Children	PER_PER_DEPENDENT_UNDER_AGE.	Children younger than a certain age. A child is defined by the Child contact type and the selection of the Statutory dependent option.
	PER_PER_DEPENDENT_AGE_BETWEEN.	Children between two defined ages. A child is defined by the Child contact type and the selection of the Statutory dependent option.
Extract Contact Type	PER_EXT_CONT_CONTACT_TYPE
Extract Contact Country Name	PER_EXT_CONT_COUNTRY_NAME
Assignment Number	PER_ASG_ASSIGNMENT_NUMBER
Assignment ID	PER_ASG_ASSIGNMENT_ID
Assignment Start Date	PER_ASG_EFFECTIVE_START_DATE
Hire Date	PER_PERSON_ENTERPRISE_HIRE_DATE
Job	PER_ASG_JOB_ID
	PER_ASG_JOB_NAME
Job Code	PER_ASG_JOB_CODE
Job Family	PER_JOB_FAMILY_ID
	PER_JOB_FAMILY_NAME
Business Unit	PER_ASG_BUSINESS_UNIT_ID
	PER_ASG_BUSINESS_UNIT_NAME
Location	PER_ASG_LOCATION_ID
	PER_ASG_LOCATION_NAME
Department	PER_ASG_DEPARTMENT_ID
	PER_ASG_ORG_DEPARTMENT_NAME
Legal Entity	PER_ASG_LEGAL_ENTITY_ID
Legal Employer	PER_ASG_ORG_LEGAL_EMPLOYER_NAME
Normal Hours	PER_ASG_NORMAL_HOURS
Assignment Category	PER_ASG_EMPLOYEE_CATEGORY
	PER_ASG_EMPLOYMENT_CATEGORY
Legal Employer	PER_ASG_ORG_LEGAL_EMPLOYER_NAME
Assignment Flex	PER_ASG_DF	Descriptive flexfield.
Grade Flex	PER_GRADES_DF	Descriptive flexfield.
Grade Code	PER_ASG_GRADE_CODE
Grade	PER_ASG_GRADE_ID
	PER_ASG_GRADE_NAME
Grade Ladder	PER_ASG_GRADE_LADDER_PGM_ID
Grade Step	PER_ASG_GRADE_STEP_ID
	PER_GRADE_STEP_NAME
Location Flex	PER_LOCATIONS_DF	Descriptive flexfield.
Salary Basis	CMP_ASSIGNMENT_SALARY_BASIS_NAME	Works in only flows that have both employment and salary sections included. Won’t work in the standalone Change Salary flow
Action	PER_ASG_ACTION_CODE
Reason	PER_ASG_ACTION_REASON_CODE

User Entity and Database Item Details

You can use these user entities when creating an HCM extract:

Base User Entity Name and Name	Details
ORA_CMP_ASSIGNMENT_SALARY_RATES_UE Assignment Salary Rates Data	All rates-based salary components for a specified date.
ORA_CMP_ASSIGNMENT_SALARY_RATES_RGE_UE Assignment Salary Rates Data for a Date Range	All rates-based salary components in a specified date range.

Formula Function

Function Name	Description	Parameters
GET_SALARY_RATE_DATA	Function to get the rate amount for a given base rate for an assignment.	P_BASE_RATE_NAME P_AMOUNT_TYPE To return a rate amount, provide an input of null or 'RATE_AMOUNT'. To return an annual amount, provide an input of ‘ANNUAL_AMOUNT’. To return an annual full-time amount provide an input of ‘ANNUAL_FT_AMOUNT’. To return a factor, provide an input of ‘RATE_FACTOR’.

Change to Setup

When you assign workers a rates-based salary basis, you shouldn’t make intrusive changes like these to the rate definitions: 

• Add or remove rates from the salary basis
• End date rate definitions
• Add or remove or change contributing rates

Do this instead 

1. Create other rate definitions or another salary basis with the new rate components configuration.
2. Assign the new salary basis to workers effective as of the change date.
3. Inactivate the old salary basis, so that it’s no longer used. 

Limitations

• Employment termination: Currently when the employment is terminated for a worker with a rates-based salary, all the corresponding element entries get end dated based on their termination rule. But their salary record doesn’t get end dated. In this situation, rate values don’t get calculated. You need to manually end date the salary.
• Migrate a rates-based salary to another type: After a worker has a rates-based salary basis, you can’t change their salary to a user determined, incremental components, or standard components salary basis. You can delete all the rates-based salaries for the assignment and create another salary using another type of salary basis.
• Correct a salary basis using HCM Data Loader: After a worker has a rates-based salary basis, you can’t correct their salary with another salary basis. You need to delete the salary and create it again using the new salary basis. You can delete only the most recent salary.
• Update a salary basis using HCM Data Loader: When you update the salary with another rates-based salary basis, the element entries belonging to the primary rates of the old salary basis aren’t end dated. Use HCM Data Loader and the Element Entry object to update the end date of the affected element entries.
• Insert retroactive salary: You can create a rates-based salary between existing rates-based salaries from the application, but not using HCM Data Loader.
• Mass change legal employer: During a mass change of legal employer, the salary process copies salary to the destination legal employer in certain scenarios. The rates-based salary basis can include element rates. When you choose to also copy element entries during the mass change process, the payroll process can also try to copy the element entries, leading to errors creating the salary. To prevent this scenario, you can define an element group to exclude rate elements when submitting the mass change process. This ensures that the salary copy process copies the element entries, but not the payroll process.
• Calculation date in Offer and Pending Worker flows: Data retrieved and calculations done using the assignment effective start date. This is the behavior that Global HR and other sections follow in these flows: The assignment effective start date is the same as the offer creation date when the proposed start date is in the future. But if the proposed start date is in the past, then the assignment effective start date is the same as proposed start date.