You can use pay zones to increase or decrease pay grade amounts according to the geographic area that employees work in. Pay zones can help your organization account for different cost of living averages or different labor market conditions for certain areas. For example, you can configure a pay zone that increases pay grades by ten percent for employees working in New York City or San Francisco.
To use pay zones, jobs must have pay grades assigned. See Pay Grade Configuration in the Dayforce Implementation Guide.
When configured, pay zone functionality replaces org differential functionality, which is available in Dayforce by default. Org differentials are used to increase or decrease pay grades for certain organizational units. See Org Differentials in the Dayforce Implementation Guide.
You can create pay zones and maintain existing pay zones for your organization in HR Admin > Pay Structure, in the Pay Zones tab. Dayforce isn’t preconfigured with pay zones so you need to create them.
The following screenshot shows an example of the Pay Zones tab after pay zones have been added:
At a minimum, you must assign a country to a pay zone. You can also add or import additional criteria to the pay zone to make it more specific, including province/state, city, or zip/postal code.
For more information about configuring and using pay zones in Dayforce, see Pay Zone Configuration in the HR Administration Guide.