Configure Pay Zone Differentials

After you create pay zones, you need to associate them with your organization's pay grades. You can do this by adding a record for the pay zone in the Pay Zone Differentials subtab in the Pay Grades tab of Org Setup > Jobs and Job Assignments.

The Pay Zone Differentials subtab is only shown if the Enable Pay Zones in place of Org. Differentials checkbox is selected in the General section of the Properties tab of System Admin > Client Properties.

Before You Begin: Each pay grade must be configured with the minimum, maximum, and control values that are considered the base rates for the pay grade. See Pay Grade Configuration.

You can add more than one pay zone to a pay grade. When the background job runs, Dayforce assigns the pay zone that is the closest match to the employee in the following priority: zip/postal code, city, state/province, and country. For example, you add a pay zone for Canada, and another pay zone for Toronto, Canada. In this case, employees with the Canada pay grade who work in Toronto are assigned the pay zone for Toronto, Canada.

To add pay zone differentials for a pay grade:

1. Go to Org Setup > Jobs and Job Assignments.
2. Click the Pay Grades tab and select a pay grade to expand its details.
3. Click the Pay Zones Differentials tab, and then click Add.
4. Select a pay zone in the Pay Zone drop-down list. The Differential Type column is set to Percentage by default. The percentage in this column is based on the differential percentage set in the Pay Zones tab of HR Admin > Pay Structure. The amounts in the fields for rate and salary are automatically updated based on the percentage.
5. For example, if 110% is shown, the amounts in the fields for rate and salary are 10% more than the pay grade value in the Rates tab of the pay grade.
5. Enter effective dates to set when the pay zone differential is active.
6. (Optional) Do one of the following tasks to override the differential percentage of the selected pay zone:
   • Click the cell under the Differential Type column and enter a different percentage.
   • Click the cell under the Differential Type column and select Custom. Dayforce unlocks either the Rate or Salary field, based on the pay type group assigned in the General subtab of the pay grade.
7. Note: Overriding the differential percentage decouples the record from the pay zone, meaning that changes to the percentage in the Pay Zones tab of HR Admin > Pay Structure no longer impact the individual differential record. See Edit Pay Zones.
7. Click Save.