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Here in this blog i would like to discuss how pay components are automatically defaulting in salary structure of an employee.

For achieving this there should be a standard Compensation adopted by the Company. Here i am giving one example below

 

 

HOW SALARY STRUCTURE APPEAR IN COMPENSATION PORTLET

Now here i am showing how the Pay Components will appear in Compensation Portlet of Success Factors for one test employee.

 

In above example we can see once we enter Current Salary as 20000 then all the salary break up are automatically populated as expected.

ADVANTAGES OF AUTOMATIC DEFAULTING SALARY STRUCTURE

Error Free Data

Reduce manual effort

Compensation data for each employees can be captured along with his/her past record

Reports from Compensation Structure helps to understand the total cost in salary

HOW CAN WE ACHIEVE THIS IN SUCCESS FACTORS SYSTEM?

 

For this to achieve you should define all your pay components in system as a prior request.

1. Go to Manage Organization Pay and Job Structure -> Create New -> Pay Component

 

2. Now you can create required Pay Components. Base Salary, HRA, Conveyance, Provident Fund etc.

Example: Base Salary

 

Similarly you need to create all relevant Pay Components

3. Now you need to give permission for the components to View/Edit for the relevant permission roles

4. Next step is to define  a field for Current Salary in Compensation Portlet

Go to Manage Business Configuration -> Compensation Portlet -> Custom Field added below called Current Salary

 

 

5. Now you need to give permission to the Current Salary field under Employee Central Effective Dated Entities for the relevant roles

 

 

6. Once you complete this you need to write a Business Rule to automatically propagate Pay Components based on Current Salary you have enterd

Go to Configure Business Rule -> Create New Rule -> Basic Rule

Note: You need to select base object as  Compensation Information

 

7. In the rule you can write If  condition as required

Here you can define conditions like IF Current Salary is greater than 20,000 or Employee belongs to certain pay grades, company, department etc..

 

 

8. Now you have to define then conditions as required

 

BASE SALARY 50% of Current Salary is defined in Then section

Here i have multiplied Current salary with decimal 0.5 to get 50 %

 

9. Similar to BASE SALARY  I have defined HRA which is 50% of Base SalarySo i multiplied Current Salary with 0.25 to get HRA.

 

 

10. Similarly i have defined Conveyance nextSince it is a fixed amount i have defined the amount directly as 3800

 

11. Same way i have created PF which is 12 % of BASE Salary in rule

 

 

12. Once you complete creating rules you need to assign this rule in Current Salary field.

Go to Manage Business Configuration -> Compensation Portlet -> Current Salary -> Details

 

Assign the rule with event type onChange 

 

Now you have completed the configuration for automatically propagating Salary Structure.

Now you may need to test this scenario by keeping different amounts in Current Salary field.

CONCLUSION

I tried to give a typical example of Compensation Structure where we usually find in Indian companies. In that also there may be some changes in requirements as per the company policy. Success Factors system is good to do configuration on this based on company need in any country.

 

Thank You

 

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3 Comments

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  1. Former Member

    Hi Anandhu,

     

    Thanks for above information.  How to calculate remaining amount for pay component: for e.g. In compensation information Annual CTC is entered as Rs.10,00,0000, based on that Basic Salary (30% of CTC), HRA (50% of basic) is calculated, but for supplementary allowance (Annual CTC-Basic Salary- HRA). How to achieve this.

     

    Please provide your inputs.

     

    (1) 
    1. Former Member Post author

      You have a minus functionality in business rule. You can use that to minus annual CTC with sum of basic & hra.

      Please note this rule will trigger only as onsave since basic and hra also are automatically propagating .

      (0) 
  2. Abdullah Musili

    Hi Anandhu

     

    i would like to ask you if these Business Rule is working on event type “oninit” or it’s only work with event type “OnChange”

     

    Thank you for this helpful blog

    (0) 

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