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Compute Salary components with system-driven metrics

From 21A Oracle has enrolled one of the most awaiting features. Oracle came up with a new salary basis type with which components can be calculated and populated automatically.

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Compute Salary components with system-driven metrics

 

From 21A Oracle has enrolled one of the most awaiting features. While users were calculating employee’s salary components and filling it manually in the change salary page, Oracle came up with a new salary basis type with which components can be calculated and populated automatically. Helps in flexibly maintaining salary in the exact way you offer it.

Components can be,

  • Either user-entered or fixed
  • Required or optional, Salary proposal always contain required components, and optional components can be added manually when required.
  • Percentage based, either be user-entered or fixed or based on another component.
  • Default values that are visible for the first time when user uses the salary basis in a salary proposal.
  • Added to the overall salary or subtracted from it, or be entirely independent.

All the above component characteristics are packed in a new salary basis type called

“Salary amount is determined by simple components”

 

Prerequisites:

User need Compensation Specialist (Job Role) to do this process, or particularly “Manage Salaries” privilege to access “Change Salary” page to manage salary adjustments.

 

Steps to enable:

  • Step 1: Navigate to Setup and Maintenance > Salary basis > Create

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  • Step 2: Click on “+” from the below screenshot to add new components in the salary basis.

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Purpose of columns:

  • Sequence: Shows the order of visibility of components in the change salary page.
  • Process Sequence: Represents the order of components processing. Once a component value is entered, other component with higher process sequence recalculate first, for this the process sequences of the recalculated component needs to be higher than the process sequence of the component they’re based on.
  • Component: Determines component name.
  • Type: Component Type Eg: user-entered amount or fixed amount.
  • Component Percentage Applies To: Available only for percentage type simple component.
  • Effect on Overall Salary: An option to select whether to add the simple component value or to subtract it from the overall salary amount.
  • Optional: Determines the component as optional or required.
  • Default Value: To set a default value in the component when salary basis is used for the first time.

 

  • Step 3: Add the required components, and the fill all the above-mentioned columns based on the requirement as below screenshot and save.

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  • Step 4: Navigate to Person Management > Change salary > Propose new salary. Select the Salary Basis created of type “Salary amount is determined by simple components”.

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  • Step 5: Based on the Basic salary entered manually in the below screenshot, other components will be automatically calculated either by
    • default percentage (Variable allowance)
    • user entered percentage (Housing allowance)
    • default amount (Meal vouchers)
    • user entered deduction (Employee’s PF)

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    • Overall salary is the mandatory component to be added which determines the result of sum and deduction of all the components, and directly maps the value to Annual salary.

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    • The New components are visible in the view compensation history page in person management and ESS for employee’s visibility.

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    • View of Compensation Info on Employee Self Service page:

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User Benefits:

  • Achieves salary calculation with ease.
  • Eradicate errors due to manual entry
  • Avoid repetitive calculation for each employee.
  • Support custom components based on user.

 

Author: Selvaganesh Somasundaram, Oracle Cloud Consultant

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