Pay rate rules are conditions of a pay agreement that determine the rate of pay to which a payee is entitled for performing a specific job role.
After all the applicable conditions of each applicable pay code rule have been applied, thereby determining the applicable pay codes and allocating time/units against each of those pay codes, the system references the applicable pay rate rules in order to determine the pay rate for each applicable pay code.
In Rates and Rules, a pay rate rule within an agreement is configured by defining the following:
pay code to which the rule applies
agreement hierarchy level and hierarchy value to which the rule belongs
validity period of the rule
type of rounding to be applied to the pay rate
pay rate type(s).
A Calculation Only flag can be set on a pay rate rule if the pay rate of the flagged rule will only be used to define a base rate of payment. Where the Calculation Only flag is enabled on a pay rate rule, no payment is made against the pay code referenced by the flagged rule itself. Instead, the pay rate defined by the flagged rule is used in the calculation of the pay rate for other pay rate rules. This allows a pay rate to be based on a combination of pay rates for different pay codes without paying against the pay code that defines the base pay rate. This helps to limit the number of individual pay items on payslips, thereby making payslips easier to understand.
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The pay rate of a pay rate rule can be based on a calculation that is applied to the pay rate defined by another pay code. A pay rate rule can be configured in this way by setting the pay rate type of the pay rate rule to Calculation. When such a pay rate type is used, you can select the pay code that determines the base rate to be used in the rate calculation. |
Pay rate rules can be created only for those pay codes for which there are pay code rules within the pay agreement. The exception to this are pay rate rules that are used for the calculation of a base pay rate only (for more information, see above), which can be created for any pay code. Multiple pay rate rules can be configured within a single pay agreement.
Once the secondary interpretation process has applied the pay rate rules, the results are passed to the Pay module to allow a payee's earnings to be calculated.
Hierarchy Level and Hierarchy Value
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Rates and Rules determines which pay rate rule within an agreement will determine the applicable pay rate by referencing the Rate Determinator Type field on the agreement header. If the field is set to Lowest Hierarchy Level, Rates and Rules applies the lowest hierarchy level pay rate rule that is valid. If the field is set to Highest Rate Value, Rates and Rules applies a valid pay rate rule that defines the highest monetary rate, regardless of the hierarchy level to which the rule belongs. If the field is set to Lowest Rate Value, Rates and Rules applies the rate rule that defines the lowest monetary rate, regardless of the hierarchy level to which the rule belongs.
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The pay agreement header is also assigned to a hierarchy level and a hierarchy value. Pay rate rules cannot be assigned to a hierarchy level that is higher than that of the agreement header. If the hierarchy level of a pay rate rule matches that of the agreement header, the hierarchy value must also match that of the agreement header. For example, if the agreement header is assigned to the Brand hierarchy level and the corresponding hierarchy value is FastTrack Recruitment Global, a pay rate rule cannot be assigned to the Country hierarchy level because that is a higher hierarchy level than Brand. A pay rate rule could be assigned to the Brand level but in that case the hierarchy value would need to be FastTrack Recruitment Global because the hierarchy value of the pay rate rule must match that of the agreement header if the hierarchy levels are the same. Alternatively, a pay rate rule could be assigned to any hierarchy level below the Brand level, such as Client, in which case the hierarchy value can be set to any appropriate value. |
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