Salary Increase Pay Component Fields

Enter a name for the pay component.

In the drop-down list, select one of the following options to define the effective date of the reward:

• Anniversary Date: Employees become eligible for the increase on their next anniversary date (that is, the anniversary of their hire date) after the end date of the compensation period.
• For example, if an employee is hired on May 5, 2015, and the compensation period is January 1, 2017 to December 31, 2017, then the employee will receive the increase from this cycle on May 5, 2018.
• Fixed Date: Employees become eligible for the increase on a specific date. When you select this option, Dayforce also shows a date field in which you can specify a fixed effective date for the pay component.

Select a reason for the salary increase (for example, promotion or cost of living increase).

Select the checkbox and Dayforce shows a lump sum column in the worksheet in which excess amounts are saved for employees whose salary or hourly rate increase exceeds the maximum value of their pay range or maximum hourly rate.

Before You Begin: You can select the Allow Promotions checkbox only for one pay component in each compensation cycle.

Select the checkbox and Dayforce shows the Promote button in the worksheet toolstrip, which you can use to promote eligible employees while allocating salary increases in the compensation cycle. See Promote Employees in Compensation.

When you select the Allow Promotions checkbox, the Reason Code drop-down list is updated so that only the reason codes that are associated with both position change and compensation change in HR Admin > Employment Status Reason are shown.

Select the guideline that you want to use for the pay component. This list shows the Salary Increase guidelines that were configured with either the Percent or Amount guideline type.

If you select a guideline that uses flat amounts rather than percentages, Dayforce shows a confirmation dialog box informing you of the following:

• Proration won’t be applied to allocation amounts using flat amount guidelines.
• Managers are required to enter all allocations for the pay component as flat amounts, rather than as percentages.
• The allocate by percentage column won’t be shown for the pay component.
• The guideline values are shown as flat amounts in each employee's local currency by default.

Click OK to select the flat amount guideline or click Cancel to clear the selection in the drop-down list.

See Configure Compensation Guidelines.

Select the color that is used to identify the pay component in the worksheet.

Configure proration rules for the pay component.

Note: Proration rules can’t be used for pay components that use flat amount guidelines.

Select the checkbox and Dayforce prorates employee allocations based on the number of days that each employee was inactive during the compensation period.

When you select the Prorate for Inactive Periods checkbox, Dayforce shows the Prorated for Inactive Periods drop-down list from which you can select the employment statuses that identify inactive periods for employees in your organization.

When you allocate for an employee in a worksheet, Dayforce deducts the number of days that they had an inactive status from the total number of days in the compensation period to prorate the allocation amount.

For example, if the compensation period is January 1, 2017 to December 31, 2017, and an employee was on leave (inactive) for three months during the compensation period, they would receive 75% of the allocated amount.

Select the checkbox and Dayforce prorates the allocation for new hires based on the number of days that they worked during the compensation period.

For example, if an employee is hired on July 1, 2019 and the compensation period is January 1, 2019 to December 31, 2019, then the salary increase for the employee is prorated by 50% because they only worked for half the period.

When you select the Prorate for New Hire checkbox, Dayforce provides you with the following additional options:

• Prorate for Past New Hire: Select this checkbox to prorate allocations for employees who were excluded from the previous compensation cycle and didn't receive a salary increase between their start date and end date of the compensation period because they were new hires at the time. If the employee is hired in the compensation period, then any salary increase during the compensation period won't be considered to calculate the proration factor. If their salary was reduced for a reason, then the proration factor is calculated based on their hire date. Dayforce calculates the number of days that the past new hire worked during the previous compensation period and adds that number to the days worked for the current cycle when calculating allocations.
• For example, a past new hire who started on October 1,2018 was excluded from a compensation cycle with the January 1, 2018 to December 31, 2018 compensation period. If the Prorate for Past New Hire checkbox is selected for the next cycle with the January 1, 2019 to December 31, 2019 compensation period, allocations for that past new hire will be prorated at 125% to account for the three months (October 1 - December 31) that they missed in the previous compensation period.
• Past New Hire Date On or After: This field is shown only when the Prorate for Past New Hire checkbox is selected. Enter a date and any employees who were hired between that date and the start date of the compensation period are eligible for proration.
• For example, if you enter September 1, 2018 in this field and the compensation period is January 1, 2019 to December 31, 2019, any employee hired between September 1, 2018 and December 31, 2018 is eligible for proration.

Select the checkbox and Dayforce prorates the increase for employees who already received a salary increase during the compensation period.

For example, if an employee receives a salary increase on July 1, 2017 and the compensation period is January 1, 2017 to December 31, 2017, then the salary increase allocated to them during the compensation cycle will be prorated by 50%. This is because they already received an increase for the first half of the period, so only the second half of the period (after the July 1, 2017 increase) is considered in the compensation cycle.

When you select the Prorate for Last Salary Increase checkbox, Dayforce provides you with the following additional options:

• Last Salary Increase On or After: Enter a date to prorate for any employees who already received a salary increase between that date and the end date of the compensation period. Any salary increases before the selected date aren't considered when calculating proration.
• Salary Increase Reason Codes: Select one of the following options to define which reason codes (associated with compensation changes) are considered for proration.
  • All: This option is selected by default and salary increases associated with any compensation change reason codes are eligible for proration.
  • Selected: Select this option and Dayforce shows a drop-down list from which you can select one or more compensation change reason codes that mark eligible salary increases.

Note the following:

• If an employee received multiple increases during the compensation period, Dayforce prorates allocations based on the latest salary increase and reason code (between the selected date and comp period end date).
• If the proration rules include inactive periods, the proration factor is calculated based on the number of inactive days after the last salary increase date with the specified reason codes.

Define how the budget is calculated for the pay component.

Note: This section shows only if you selected one or more proration rules for the pay component.