Defining a Salary Basis

Use the Salary Basis window to define a salary basis for each salary element to be used for salary administration. This establishes the duration for which a salary is quoted, for example, hourly, monthly or annually.

arrow icon   To define a salary basis:

  1. Enter an appropriate name for the salary basis.

  2. Select a pay basis, such as Annual or Hourly. For example, select Monthly Salary if you are using the predefined Regular Salary element in the US.

    If you selected Annual or Monthly, Oracle HRMS identifies the number of payments and enters 1 or 12 in the Pay Annualization Factor field. You can change this value, if required.

    If you selected Hourly, the Pay Annualization Factor field is blank. Enter your own value, such as 2080 (40 hours * 52 weeks) to enable the Salary page to display an annual salary from the hourly rate.

    If you select Period, leave the Pay Annualization Factor field blank, Oracle HRMS uses the payroll period of your employee as the annualization factor.

    Note: The pay basis is for information only. For example, to enable you to compare salaries.

  3. Select the name of the salary element and input value associated with this salary basis. For example, if you are using predefined elements in the US, select Regular Salary and the input value Monthly Salary, or Regular Wages and the input value Rate.

    Note: If you use Oracle Payroll, do not select Pay Value as the input value for the salary element. Oracle Payroll does not run the payroll formula associated with this element if you select Pay Value and therefore this selection may result in incorrect balances.

  4. Select a grade rate to associate with the salary basis, if required.

    Oracle HRMS uses the grade rate to validate your salary proposals. You receive a warning if the salary you enter for an employee is not within the grade rate range defined for the employee's grade.

  5. Select the grade rate basis (Hourly, Monthly, Annual, or Period) for the rate if you selected a grade rate. For example, if your grade rate specifies the valid monthly salary ranges for each grade, select Monthly Salary in the Grade Rate Basis field.

    If you selected Annual or Monthly, Oracle HRMS identifies the number of payments and enters 1 or 12 in the Grade Annualization Factor field. You can change this value, if required.

    If you selected Hourly, the Grade Annualization Factor field is blank. Enter your own values, if required.

    If you selected Period, leave the Grade Annualization Factor field blank, Oracle HRMS uses the payroll period of your employee as the annualization factor.

    Note: This is for information only. For example, to enable you to compare salaries within grades.

  6. Save your changes.