Calculate "monthly" salary in assignment level (Variable Pay)

[kristingurisc]

Hello Partner Community,

at our current client we have the following challenge: The salary of the employees is paid out according to different frequencies (e.g., monthly (12), bi-weekly (24) etc.). However, our client wants to use a monthly salary in the Assignment Level calculated over 12 months for the bonus calculation. Therefore, we use the following calculation: (salary per period * frequency)/12

However, our client has multiple pay components for the salary which must be considered in the in the Assignment Level and we don’t have enough fields in the background element to import each pay component and the associated frequencies into the Employee History.

Because of that we tried to use a pay component group, but in a pay component group the salary of the whole year will be summed up. If we divide the annual salary by 12 (to get a monthly salary for the bonus calculation) the average monthly salary from the whole bonus year will be shown and not the correct monthly salary per assignment. Meaning, if an employee has a salary of 3000€ per month in the first assignment and 4000€ in a second assignment, we get a monthly salary of 3500€ with a pay component group. But we need the 3000€ for the first and 4000€ for the second assignment.

Is there any way to use a pay component group per assignment? Meaning only the current salary of that assignment will be considered and not the salary of the whole bonus year? Or do you have any other ideas to calculate the salary on a “monthly” basis?

[kristingurisc]

Hi xavierlegarrec,

thanks for your reply and the suggestions!

Do you have by any chance an example of a Business Rule for the calculation? We tried it but in our case it only works with one pay component but not with multiple pay components.

Many thanks in advance,

Kristin

[xavierlegarrec]

kristin.gurisch

The easiest way (and what I would go with - credit to my colleague phil.macgovern for suggesting it) would be to use the PayComponent Group as a start:

• If = "Always True" (checkbox in top right banner of If-section)
• Then= PCG.value (always annualized) * 0.0833333333333333 (note: 0.08333.. is the outcome of 1/12)

But a cleaner way (but more complex to build) would be to lookup what paycomponent the employee has on the profile and adjust the rule according to it. If their paycomponent is already in a monthly frequency, then copy the value from that paycomponent into the new field. I don't an example for it really I would need to build it.

All the best

Xavier

[xavierlegarrec]

Hi kristin.gurisch

I had a similar requirement not long ago for a customer in retail but my luck was that they wanted the monthly salary as of 12/31 to apply to the entire calculation.

I can think of one potential standard way (meaning only with changes to the VarPay worksheet) to make it work but I need to test it before. It involves a lot of customization in the Variable Pay template no matter what.

I can also think of two custom workarounds :

• On Save business rule in EC that calculates the right monthly salary for every one in a new custom field.
• Custom MDF object and daily integration center job to recalculate the monthly salary whenever it changes then map it to a column of the varPayEmpHist background element so that it can pick up any of the changes.

All the best

Xavier