As part of the 25R3 release, we are introducing a new subject area: HCM – Workforce Rewards – Salary Basis Setup, which includes the details on the simple components, incremental components and salary basis pay rates.

What components form the salary basis?

This enhancement introduces detailed information on incremental components, simple components, and pay rate definitions, offering deeper insights into the salary basis setup. It enables a more granular analysis of how each component contributes to a worker’s overall compensation, providing a clearer understanding of the salary structure.

The visualization presented below provides information on how each of the configured component affects the overall salary structure.