Best Practice: Addition of new allowance to an existing Rate Based Salary Structure

Summary:

Best Practice: Addition of new allowance to an existing Rate Based Salary Structure

Content (please ensure you mask any confidential information):

Hi All,

This is a very common case where a new allowance (rate) needs to be part of the Fixed Salary Structure. What is the best recommended practice - create a new salary basis or update the existing salary basis with the additional allowance?

What would be the impact when looking at data in reporting? What would happen to the Offer letters already in place, would that cause error?

I would appreciate if someone can throw some light on this.