Compa-ratio is a percentage calculated as the employee’s pay amount in relation to the control point of the pay grade for their job. The control point is the amount that most employees earn (also known as the market rate). For example, a compa-ratio of 100% means that the employee is paid at the control point.
As another example, a full-time employee has an annual salary of $120,000 and the control point of their pay grade is $100,000. As such, their compa-ratio is calculated as 120%.
Dayforce calculates compa-ratio based on the employee's pay type and pay group.
| Pay Type | Pay Class | Compa-Ratio Formula |
|---|---|---|
| Salary | Full Time | Annual Salary/Control Salary
|
| Salary* | Part Time | Base Rate/Control Rate
|
| Hourly | Full Time | Base Rate/Control Rate
|
| Hourly | Part Time | Base Rate/Control Rate
|
*The formula in this row is only used when Part-Time is selected in the Pay Class Group drop-down list in HR Admin > Pay Class. Otherwise, the Annual Salary/Control Salary formula is used, which doesn't account for the actual rate of a part-time salaried employee.
For example, two salaried employees with the same job each have an annual salary of $100,000. However, one of the employees works 40 hours per week, while the other works 30 hours per week. Because the latter employee works fewer hours but makes the same salary, their base rate of pay is higher than the employee who works 40 hours. Using the formula Base Rate/Control Rate for the part-time employee allows for a more accurate compa-ratio.
The selection in the Pay Class Group drop-down list doesn't impact how compa-ratio is calculated for the other rows in the above table.