Compensation Types Concepts

Compensation types are the building blocks of a company's compensation agreements.

Quick facts on Compensation Types:

• Compensation types are the templates for employee compensation agreements.
• Contain information such as maximum and minimum salary amounts for employee agreements.
• Used for defining compensation-specific information for all agreements of the given type.
• Examples: Basic Salary, Pensions, Bonuses, Insurances, and so on.
• All compensation types must by assigned to a Compensation Model.

Additionally, a compensation type can be set up as a percentage of the sum of other compensation types within a Compensation Group. The percentage is then used when calculating gross pay and base salary.