Create a reusable rule for a premium, allowance, reduction, or other policy. Set what it changes, its method, value, and order. Apply it separately in labor budget or actual compensation when the policy should affect a result.

Before you begin

Activity Permission and scope required
Create or change a pay adjustment rule Manage labor budgets for All departments
Apply a rule to labor budget Manage labor budgets for every affected department
Apply a rule to actual compensation Manage actual compensation for every affected department
Review permission details See Roles and permissions

Pay adjustment rules can contain financial values. Use them only for authorized work, and choose names that describe the business policy without exposing an employee’s compensation.

Create a pay adjustment rule

  1. Open Settings and select Pay adjustment rules.
  2. Select Create pay adjustment rule.
  3. Enter a name that identifies the business policy.
  4. Choose the effective date on which this rule begins.
  5. Choose what should change and how it should change.
  6. Enter the value and any required pay-rate basis.
  7. Choose an account code when this contribution needs separate classification.
  8. Review Order within type against other rules with the same target and method.
  9. Choose whether the rule can be used on positions or job codes and whether duplicate uses are allowed.
  10. Save and review the rule’s Details and Availability.

Use a name such as “Evening shift premium” or “Temporary vacancy savings.” Avoid an employee name, unexplained abbreviation, or a name that does not distinguish this policy from another rule.

Verify the setup

Before using a rule widely, apply it to a small representative scope and confirm:

  • the intended target and method;
  • the entered value and pay-rate basis;
  • the effective date and availability;
  • whether duplicate uses contribute once or more than once;
  • the account-code classification; and
  • the adjustment line and final result shown in the calculation details.

See Apply labor budget adjustments or Apply actual compensation adjustments for guidance about using the rule in each area.

If the rule is used in both labor budget and actual compensation, verify one representative result in each area. The same rule formula and calculation order apply, but each area has its own dated use and supporting information.

Understand rules and applied adjustments

The pay adjustment rule controls Each applied adjustment controls
Name, calculation target, method, value, and calculation order Effective date and optional end date
Pay-rate basis and cross-basis behavior when required Department, job group, job code, position, or assignment scope
Whether duplicate uses can contribute Work schedule or shift eligibility
Account-code classification Coverage, replacement, or suppression
Direct position or job-code use and overall availability Whether the policy applies in labor budget or actual compensation

Changing a rule can affect every matching use of that rule beginning on the change date. Changing one applied labor budget or compensation adjustment affects only that dated use.

Calculation order belongs to the reusable rule. Labor budget has a separate Overlap priority that selects between matching uses of the same rule; it does not move that rule in the calculation sequence. Actual compensation has no applied-adjustment priority.

Choose what the adjustment changes

Select Projected FTE, Pay rate, or Annual cost only to match the policy. The target changes the calculated result; it does not edit the position, assignment, budget rate, or employee pay you entered.

Use the target comparison and examples if you are deciding whether a policy should change staffing capacity, a rate, or only the final cost.

Choose how the value is calculated

Choose the method on the rule form: a fixed amount included before percentages, a percentage of the starting value, a percentage of the running value, or a fixed amount after percentages. Compare their effects in Calculation methods.

Use Order within type to place this rule among rules with the same target and method. It cannot move a rule to another stage. Before changing the order of compounding percentages, work through a representative calculation.

On rule forms, enter 5 for 5%; an individual percentage cannot be below -100%. CSV import templates use decimal rates such as 0.05 for 5%.

Configure fixed pay-rate amounts

A fixed pay-rate rule requires a Pay rate basis:

Choice Meaning
Hourly The fixed value is an hourly pay-rate amount.
Annual The fixed value is an annual pay-rate amount.
Same basis only The component contributes only when its hourly or annual basis matches the base pay rate.
Convert FTE Tree converts between hourly and annual values using annual hours per FTE when necessary.

Percentage pay-rate adjustments do not require a separate basis because the percentage uses the applicable starting or running pay rate.

Configure the remaining options

Option How it works
Account code Classifies only the adjustment’s contribution. Leave it blank to use the account associated with the position’s effective job code.
Order within type Sets the sequence among rules with the same target and method. It cannot move a rule into a different calculation stage or method.
Use on positions Allows the rule to be selected directly on an individual position.
Use on job codes Allows the rule to be selected on a job code and inherited from the job code in effect for a position.
Allow duplicates Allows the same rule to contribute more than once when more than one eligible use matches.

Leave Allow duplicates off when the business policy should contribute only once, even if more than one matching source selects it. Turn it on only when each matching use represents a separate cost or FTE effect.

For actual compensation, overlapping applied adjustments of the same rule cannot use a separate priority. When duplicates are not allowed, explicitly narrow, end, remove, replace, or suppress the overlap. When duplicates are allowed, every eligible use can contribute in the rule’s shared calculation order.

The position and job-code choices control direct use of the rule. They do not apply the policy to labor budget or actual compensation. Apply the rule separately in the relevant financial area.

Manage availability

The Availability tab controls the dates on which the rule can be selected for new direct position or job-code uses. Making it unavailable preserves existing uses, calculations, reports, and activity history. Add a later available date when the same rule should be offered again.

Use on positions and Use on job codes are separate dated settings. Turning one off prevents new selections in that location without removing the earlier history.

Make a later change or correction

Each rule setting has its own dated history. Add a later value when the business rule genuinely changes. For example, record a new percentage on July 1 when the policy rate changes on July 1.

Use Update value or the available correction action when the recorded value or effective date itself was wrong. Use Void only when that dated entry should never have existed. Activity history continues to show the correction.

Changing the rule does not rewrite a completed report. Wait for affected results to update, verify a representative result on the new effective date, and run a new report when you need the updated information.