Enter Budgeting Method Details
Explanation
This activity is used to enter the Budget Distribution Method. Budget distribution type determines the way in
which the salary review increments are calculated. The budget distribution type can be entered in 3 ways:
- Total Budget - This method can be used if the total budget for the review period is know in
advance. Total Budget = Salary Increment + Current Salary.
- Increment Percentage or Amount - Enter either the Increment percentage from which the salary should be
increased or the Salary Increment Amount. When either is entered the other field will be filled.
- Equal Increment Amount for All Employees - Enter the equal increment amount / flat increment amount that
should be circulated among all the employees.
When any of the fields are filled eg: Amount field (of the Total Budget option is filled) the other option
fields like Increment %, Increment Amount and Amount fields will automatically get their calculated values.
Prerequisites
- Factors like Current Salary, Employees Considered for Review (initially derived) are required for the
internal calculations.
System Effects
- At the end of this process the New Salary Budget, Salary Increment Budget and the Salary Increment % wil be
obtained.