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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Only one pay/bill rate rule with the same pay/bill code can be created at any given agreement hierarchy level/hierarchy value within a given validity period. The exception to this are pay rate rules that apply top-up rates.
Rounding
A pay rate rule defines defines how the pay result of the pay rate rule is to be rounded. That is, the pay rate result can be rounded up or down to a specific number of decimal places or it can be truncated to a specific number of decimal places. Note the following:
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The rounding setting applies to the |
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result |
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of the pay rate |
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calculation and not the pay rate itself. |
Rate Type
A pay rate type defines how the pay rate is determined. For example, the rate may be a flat rate, based on a calculation or the rate may be based on the payee's specific rate. It is possible for one pay rate rule to define different rate types depending on specific conditions that apply.
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