Enter Review Budget Information (Create Salary Review Plan)

Explanation

This is the second step (Third Activity) of the “New Salary Review Plan” assistant. This activity is used to identify the proposed increment budget for the salary review plan.

As soon as you visit this step in the assistant you will notice the following fields updated.

• Employees Considered for review
  Displays the count of employees considered for the salary review plan. The Employees are filtered based on the Exclude List Criteria selected in the previous step of the assistant.
• Current Salary
  Display the Total Current Salary of the employees selected for the salary review plan.
  
  The current salary total is calculated by adding all the compensation types marked as “Included in Salary Review Budget” or “Included in Budget” at the Basic Data Page
  

  Example: -

  Employee has following compensation types in the employee file and all of them are valid for the snapshot date entered during the previous step.

   

  Base Salary = 4000

  Allowance = 2000

  Car Allowance = 3000.

   

  But when calculating the Current Salary, it will only consider 6000.

  This is because Car Allowance is not part of the salary review budget. (In Compensation Type Basic Data, it was not marked as “Included in Budget”)

 

Generating the New Salary Budget

Use any of the following options to generate the new salary budget.

Total Budget

Total Budget is the amount planned for the reviewed period.

Example The Current total salary of the company is 120 per annum and the company is planning to pay 128 in salaries the following year. (The portion planned for the direct salaries).
The moment you enter a value to the total Budget field, you will notice the fields in the budget statistic section (Located above the current section) Increment Amount, Increment % and New Salary Budget gets updated.

Following fields are calculated based on the Amount you entered in the Total Budget.

Considering Above Example of 128 the fields will reflect as follows.

• Increment Amount = 8

• Increment % = 6.67%

Important Note
                In this case Since the % is calculated based on the amount that was entered it is very likely that a % value with many decimal pointers will generate.
                In Above Example the actual increase in % is 6.6666666666667%, However the system will reflect this value in a rounded manner and if you happen to click on the % field in edit mode when the plan is generated it will reflect the actual %                 (with all the decimals).

• New Salary Budget = This will be the same amount entered as the total budget.

Increment Percentage or Amount

In this case you can propose an increment amount or a % for the current salary (The total salary that is part of the budget). Similar to the Total Budget option based on the % or Increase amount you have entered; the respective Total New Salary Budget and other fields will get calculated.

Equal Increment Amount for all employees

If there is a requirement to provide an equal amount as an increment to all employees. You can select the Equal Increment option and enter the amount an employee will get as a result of this increase. In this case, based on the number of employees and the current salary of the organization the solution will calculate the New Salary Budget, The Proposed Increment Amount (Simply equals Number of employees in review * Entered Amount) and the % increase from the current salary.

When above activities are complete, clicking on the finish button will navigate you to the salary review plan with the proposed budget.

 

Prerequisites

In order to perform this activity:

• The Previous Steps of the new salary review plan Assistant must be complete.

System Effects