Compensation details carry some of the crucial information of a Salary Revision Request like Proposed Increment, Proposed Amount, Proposed Increment Percentage, and Effective Date. The salary revision will take place for the selected employee on the Effective Date once created would go through an approval flow until it reaches the last stage which is the updating of employee salary.
If the manager would like to suggest a change or register any Compensation details of an employee. When adding a compensation record, use the New button and enter the desired information. Select from any of the available Compensation Types, including Base Salary or any other types such as bonuses or commissions (Compensation Types can be defined in the Compensation Basic Data).
When modifying compensation records, select edit and enter the desired information.
"Amount per Salary Period" is calculated only for the Base Salary. Based on the Pay Frequency and the Employment Agreement connected to the employee the Amount per pay Period is calculated. This calculation is not applicable for compensation types other than the base salary.
Dependent Compenstion Records
Dependent compensation records i.e.
compensations that can be calculated as a percentage of a Base Salary can also
be added or changed in the dialogs mentioned above. Hence, dependent compensation
records must always have a matching Base Salary record (See below for prerequisites).
Any changes done to a Base Salary record with matching dependent compensation
record, will be reflected in the matching dependent compensation records in
fields including, but not limited to,
Validity Period
Amount
Compensation information is necessary for follow-up and reviews. E.g. To get an overview of the complete compensation package for employees, jobs etc. during the recruitment and salary review processes.
Change History
When the base salary and dependent compenesation types are updated it is recorded in Change History. The fields that are shown in Change History are PROPOSED INCREMENT, PROPOSED INCREMENT % and PROPOSED AMOUNT. When the compensation records are updated the total amounts of all the compenstion types that have changed will be shown. Therefore the increment, increment percentage and amount proposed for all compensation types is captured. New values are always shown in the Curernt Content field. It also shows the user who has done change and the date in which the change has occureed.
In order to register Compensation Information
In order to register compensation records that are calculated as a percentage of a Base Salary (Dependent compensation records),
As a result of this activity, employee compensation information and employee compensation history data will be registered successfully.