A pay policy is a set of rules and guidelines that govern the pay of employees. It ensures that your compensation budget is dispersed more evenly, taking into consideration employee performance and goals met.
The primary motivation for many businesses to create an internal pay policy is to ensure that everyone gets paid fairly and in accordance with the company's strategy and goals.
As a result, the primary goals of human resource pay strategies are to:
- Attract and retain talent
- Satisfy the financial needs of the workforce.
- Guarantee fair and equal pay
Step 1 - Click "Add Pay Policy" to create the pay policies.
Step 2 - Add the pay policy name, period, and start date. Enable the "Enable Working Day, Non-Working Day and Holiday Rules" to select the rules, click "Add Rule".
|Pay policy name||Add the pay policy name here|
Select the suitable pay period
|First Pay Period Start Date||Choose a date for the pay policy to begin. From that point forward, the system will monitor employee attendance records and compute depending on the rule.|
When the "Enable Working Day, Non-Working Day and Holiday Rules" is Disabled,
(iii) Daily Rule
When the "Enable Working Day, Non-Working Day and Holiday Rules" is enabled,
Following are the rules that you can select when setting up the.
(i) Working Day Rule
How to Set up Daily Rules
For example, the employees should work for 8 hours on a regular basis (RT) per day, and if they exceed the hours, based on the policy the base pay will be increased.
1st Daily Threshold = 8 hrs
Time Up to = RT - Regular Time
Time Exceeding = OT - Over Time
2nd Daily Threshold = 12 hrs
Time Exceeding = DT - Double Time
How to Set up Weekly Rules
If you are setting up the pay policy rules for the weekly or consecutive days, add the rules by clicking the "Add Rules". Ex: Employees need to work 8 hours per day for the entire week and if the total number of hours exceeds 40, the base pay will be multiple by 1.5
Weekly Threshold = 40 hrs
Time Exceeding = WOT - Weekly OT
How to Set up Consecutive Rules
Ex: Employees need to work 8 hours per day for 6 consecutive days, and on the 7th day the employee's base pay multiples with 1.5 and if the number of days is more than 8 consecutive days, the employee's base pay multiples with 2.0, and the amount will be paid for the employee.
7th Consecutive Day Threshold = 8 hrs
Time Up to = OT - Over Time
Time Exceeding = DT - Double Time
How to Set up Non-Working Days and Holidays Rules
The pay policy rules apply when if an employee works on a non-working day or holiday. Based on the number of hours that they work on a non-working day or a holiday how their basic pay should get calculated can be defined using the setup.
For example, If the policy rule has been set up to work 8 hours per day and if an employee works on a holiday or a non working you can set up based on the number of hours how the basic pay should be calculated.
How to Set up Round off Rules
It can be difficult to handle very small segments of logged employee hours, such as seconds or just a couple of minutes. These micro periods of work time can be a challenge when you are trying to finalize your weekly or monthly payroll runs. This is one of the primary reasons to configure the rounding options. There are two round-off rules that can be configured in the system as follows.
- Round Off to Nearest: 5 Minutes, 10 Minutes, 15 Minutes, 30 Minutes, 1 Hour
- Round Off to Shift Times - Rounding Window: 5 Minutes, 10 Minutes, 15 Minutes, 30 Minutes, 1 Hour
Step 4 - After setting up the rules click "Save"
Step 5 - The next step you need to select the employees. Click this "Employee selection" button.
To your left side corner, there are some filters that you can use to select the correct set of employees who are going to fall under the pay policy.
Ex: Select the location as Australia and you can see the employees belongs to that location. After that click save.
If you want to at a particular employee you can enter the employee name in the search bar and select the employee and click save.