Incremental Salary Component Lookups

HR specialists and line managers can use incremental salary components to itemize new or adjusted salary, to reflect the different reasons for their allocations. Here are the incremental components bundled in the implementation:

• Adjustment: Regular and automatic adjustment
• Cost of Living
• Equity: Adjustment to correct salary compression or inversion
• Location
• Market: Adjustment due to salary being out of line with the market
• Merit
• Promotion
• Progression: Regular and automatic adjustment
• Structured: Adjustment dictated by union or employment contract, such as an increase after 3 months

You can change or add components to the CMP_SALARY_COMPONENTS lookup type to better support your reporting policies for salary allocations. Use the Manage Common Lookups task in the Setup and Maintenance work area.

Itemization

The salary record stores the incremental component itemizations and uses them to calculate new salary. When component values change, the payroll element holds the new salary amount calculated from the component adjustments. But it doesn't receive individual component amounts for processing. The incremental values entered in the salary record apply only to that record and don't apply to any future salary records.