Creating a compensation frequency

See page overview

• Select the “Create Compensation Frequency ” link from the left pane.

• The “Create Compensation Frequency” page appears.

• The system displays the following.

• From the “Payroll General Info Unit” drop-down list box select the organization unit for which the compensation frequency must be defined. Tell me more

•  Enter the following fields.

• The first row of the “Compensation Frequency Matrix” multiline displays all time units from “Day” upwards. The same time units are also vertically displayed under the column “Rated Frequency”.  This column includes “Hour”, additionally

• For each time unit listed under the “Rated Frequency” column, specify the conversion factor that will convert it into each of the units of time listed across the multiline. (Day, Week Bi-week, etc.)
  Take the example of the time unit Hour, under the “Rated Frequency” column. To convert it to Day, specify 9 hours in the specific multiline cell where “Hour” on the Y-axis converges with “Day” on the X-axis.

Note: The compensation factor is simply the number you enter, to specify the sum of the time unit listed under the “Rated Frequency” column that is equal to one time unit of time on the X-axis. In a factory, 9 hours could be equal to 1 Day.

• Similarly, to convert Hour to Week, specify 40 hours and Hours to Month by specifying 160 hours. When you complete the entire matrix, the system will be able to equate all units of time with each other. For instance, an employee’s compensation is $100 per Day, the frequency of his compensation once a Month and each Day equal to 10 Hours. The system can use this matrix to compute his compensation at month-end based, after obtaining his attendance.

• Indicate whether each conversion must be activated, by selecting “Yes” or “No” in the “Active” drop-down list box. By default, the status displayed is “blank”.

Note: You must enter the conversion factor for each time unit under the “Rated Frequency” column, provided the “Day”, “Week”, etc.” cells across the “Compensation Frequency” multiline are equal to or greater than the time unit under “Rated Frequency”. For example, if you specified  “Week” in the “Rated Frequency” field, you can enter a conversion factor only for the following: “Week”, “Bi-week”, “Semi-month”, “Month” or “Year”.
 “Bi-week” in the “Rated Frequency” field, the conversion factors are applicable for “Biweek”, “Semi-month”, “Month” and “Year  “Semi-month, the rated frequencies applicable are “Semi-month”, “Month” and “Year”.

• Enter the following.

• Select the “Save” pushbutton at the bottom of the page to save the details entered.

• Select the “Organization Unit Mapping’ link at the bottom of the page.

 Note: Only one Compensation frequency can be created for a Organization Unit.

6 Hyperlinked topics below

Page objective

Use this page to add a new compensation frequency and make it available for a specified organization unit group.

Page overview

Compensation frequency refers to the time intervals such as Day, Week and Month, at which the compensation is paid to employees. The basic unit of time, for which the compensation is fixed, such as Hour, Day, Week and Month, is called rated frequency.

For instance, an employee’s salary is fixed at $100 per Day, and he is paid once every month. The rated frequency is “Day” and the compensation frequency is ‘Month’, in this instance. The compensation is computed for the number of working days per month.

Through this activity, you can define a conversion table, to enable the system to calculate employee compensation, loss of pay, leave and other details for any time span. Using the example above, you can define

•  The number of hours that make up a day

•  The number of hours that make up a month

•  The number of days that make up a week

•  The number of days that make up a month

Note that although you specify conversion information in the “Define Period Units” activity, it is specifically for calculating employee attendance. The “Create Compensation Frequency” activity allows you the flexibility of specifying different conversion information for different contexts.

For instance, in the period unit activity, a Day is equal to 8 hours, a Week equal to 40 hours and a Month is 160 hours. Employee attendance is computed based on this premise. However, there are other contexts where the same conversion may not be applicable, and a Day cannot be converted to 8 hours. If the system is to compute an employee’s leave on a pro-rata basis, where 1 month of attendance earns the employee 2 days of Privilege Leave, statutory regulations may require a month to be equal to 30 days. Through the “Create Compensation Frequency” activity, you can provide this flexibility. Note that the computation of employee attendance will remain unaffected, because it refers to the conversion information from the period unit activity and not from the “Create Compensation Frequency” activity.

You can attach multiple conversion tables to an organizational unit group.

The Compensation Frequency activity enables you to define each conversion table with a unique code and description. For a given compensation frequency code, you can specify

• Whether each conversion is active. The need to specify this arises because all the conversions in a matrix may not be applicable for an organization unit. Within the matrix, you could have specified a day to be equal to 9 hours, a week 17 hours and a month 37 hours. Later, when the compensation frequency code is mapped to an organization unit, only the first conversion is applicable and must therefore be made active. The system processes this organization unit’s payroll only according to the indicated frequency.

• Whether this compensation frequency must be available to all the organizational units within the group or only to those organizational units to which the login user is attached.