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Implementing Grade-Specific Allowances Using Rate Definition in Oracle HCM Compensation

in Compensation 1 comment

Summary:

Hi Team,

We are implementing Oracle HCM Compensation and facing a few challenges in configuring the Salary Basis to meet the following business requirements.

Business Requirements

  1. On-Call Allowance: Employees in grades FE.01 and FE.02 should receive an On-Call Allowance equal to 25% of their basic salary.
  2. Premium Allowance: Employees in grades EC.01 and EC.02 should receive a Premium Allowance equal to 20% of their basic salary.
  3. These allowances are applicable only to the specified grades and must not be applicable to employees in any other grades.

Challenges and Observations

We are unable to implement this requirement using Salary basis with Components because we have only one Salary Basis element available, whereas we need to populate two separate elements: one for the On-Call Allowance and another for the Premium Allowance.

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