Set Up Compensation Type

Use these steps to set up a compensation type.

To set up a compensation type:

1. Go to Human Resources > Employees > Setup > > Compensation Models > Compensation Types.
2. Click , and enter a name and description on the Create Compensation type wizard.
3. Click Create, and select the type to display it.
4. On the Compensation Type tab and island, select the Mandatory Agreement check box to create a related agreement automatically when this type is used.
5. If you would like this compensation type to be used only by specific employees, in the Selection Criterion Specification field, select a specification group, or use the related action to create a new one as needed.
6. In the Default Linking Rule field, select the needed linking rule if you would like this compensation type updated for specific updates.
7. In the Allowance / Deduction field, select Allowance.
8. In the Pay Period field, select the payout period for this compensation type, such as Month to indicate once a month.
9. In the Value Limits island, select a Currency to use with this type as well as Minimum and Maximum monetary amounts to include as a price range, as needed.
10. In the Calculation island, in the Period, Pro Rata field, select Period Fixed Time.
11. Select the Incl. in Gross Pay and Incl. in Base Salary Rate check boxes.