User Support / Quick Reference Guide
Pay Rate Change - Merit - Add/Change
In this lesson, you will be recording a 2% Merit increase Pay Rate Change for Eric Thomas effective June 1, 2009. Eric’s employee number is 010004060 and his new monthly pay rate will be $7,031.37.
1. / PAY RATE CHANGEis used to make a permanent or temporary change to the compensation rate of an employee without making a job code change.Note: Do not perform a Pay Rate Change when your HCM action involves a change to Job Code. In that case, please refer to the transaction processes for Job Reclassification, Promotion, or Demotion.
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Staff STIPEND is a fixed sum of money, usually temporary, paid to an employee to recognize work responsibilities that are significantly higher than the employee's regularly assigned duties.NOTE: Union-covered staff generally receive Temporary Reclasses instead of Stipends, so please check the appropriate contract before entering.
Staff employees that receive extra pay as a Stipend– have it entered as Payrate Change-Stipend and an additional distribution line for a fixed amount with an Earnings Code ofSAS (Staff Stipend) is added to the Earnings Distribution page. Stipends are usually temporary payments and as such, the Stipend should have an End Date in HCM.
This lesson will not be addressing stipends, so for transaction support for entering a Staff Stipend, please go to the Stipend for StaffUPK Lesson.
OTHER-STIPEND TYPE PAYMENTS:
For employees in staff jobs that are 'Step-based' (union covered), staff receive extra pay through Temporary Job Reclassifications, NOT stipends.
Academic Stipends are entered as an Additional Job.
2. / REASON CODES for Pay Rate Changes
There are 13 Pay Rate Change Reason Codes for use by Department Originators:
• Disciplinary: a reduction in pay due to a disciplinary action by the department.
• Equity Adjustment-Individual: an adjustment to an employee's pay to address a pay inequity.
• Merit: a pay increase based upon performance; for Academic positions, this is defined as an advancement in step w/o a change to Title or Rank. For Academic increases w/o change in step, see "Review Increase-Academic" below.
• Negotiated Agreement Adjustment: an increase for members of a bargaining unit to implement a negotiated agreement when the increase is not merit-based nor a range adjustment. (Note:usually entered centrally)
• Parity Adjustment: an increase to bring a group of employees into alignment with comparison groups.
• Range Adjustment-Department: adjustment due to contract agreement or increase given by the University (Note: HR may enter these adjustments centrally - see below).
• Return to Base:generally used to end a Stipend for staff.
• Review Increase-Academic: a salary increase resulting from an academic review with no change to Step.
• Salary Increase to Minimum Rate: an increase in an employee's salary to the minimum value for the range.
• Salary Scale Change-Academic: an adjustment when there has been a salary scale change due to market.
• Shift Differential Adjustment: an adjustment to the Shift Differential rate on the Distribution page as a result of a change in policy or contract.
• Stipend-Staff: a stipend (temporary increase) for a staff appointee (Note: Academic Stipends are added as additional employment instances - a job record; use menu navigation: WFA/Job Data/Add Employment Instance).
• Time in Title-Academic Students: a step increase for a GSI/GSR based on either years of service or where, they are in their degree program, and for postdoctoral stipend increases.
The following 6 Pay Rate Change Reason Codes are for Central HR use only unless you are specifically instructed to use them, e.g. re-entering historical rows:
• Baseline Wage Increase
• Classification Pause Pay
• Market Adjustment-Academic
• Move to Step Structure
• Range Adjustment-Central
• Structure Modification
Web Resource: To refer to the Action/Reason Table - Pay Rate Change Section, click on this link: hrweb.berkeley.edu/hrms/actionreason/htm
3. / Navigation for Pay Rate Change/Stipend is:
Workforce Administration
/ Job Information
/ Job Data.
Click the Workforce Administration link.
4. / From the WFA menu, you can navigate directly to the Job Data link by using the full page menu dashboard.
Click the Job Data link.
5. / To update Job Data for an employee, you first must locate the employee record. Searching for an employee can be done by using the displayed search criteria options on this page.
Alternatively, you can enter theEmployee's IDnumber to go directly to the employee record you wish to work on
In this example, we will be using Eric Thomas'Employee ID number.
Eric Thomas' Employee ID number is #010004060.
Enter "010004060" in the EmpID field.
Click theSearchbutton to locate Eric's record.
Because this employee only has one record the system takes us straight into his Job Data for Record 0. (If there are mutliple records you will need to choose the appropriate one.)
6. / You need to insert a new effective dated row to add a new rate with a new effective date. The system will automatically copy the existing data into the newly inserted row for your editing and updating.
Click the+ button to add a new row.
7. / The copied row will default the current date as the effective date. You will highlight this date to replace it and enter the actual effective date of the Pay Rate Change.
8. / In this example, Eric Thomas' merit is effective June 1st.
Enter "06/01/2009" into theEffective Datefield.
9. / Action and Reason are both required fields for each effective dated action.
To refer to the Action/Reason Codes Job Aid for definitions of Reason Codes, click on the following link:hrweb.berkeley.edu/hrms/actionreason.htm.
You will pick from the Action Drop-down list.
Click the Drop-down button to the right of theActionfield.
10. / In this example, you will select the Action: Pay Rate Change.
Click the Pay Rate Change list item.
11. / Next, you will select the appropriate Reason for the Pay Rate Change.
You will pick from the Reason Drop-down list.
Click the Drop-down button to the right of theReasonfield.
12. / In this example, aMerit adjustment is being entered for Eric Thomas.
Click the Merit list item.
13. / In this example, there are no changes/updates needed on the Job Information or Payroll tabs, so we go straight to Compensation.
Click the Compensation tab.
14. / In this example, the only change to be made on the Compensation tab is for Eric Thomas' 2% merit .
In the Pay Components section, you will replace theComp Ratewith the new rate.
15. / In this example, we have been told that Eric Thomas'2% merit increase equates to a monthly rate of $7,031.37.
Enter "7031.37" in the Comp Rate field.
16. / It is a Best Practice to 'tab out' of data fields and then confirm the data was entered correctly.
Press[Tab].
17. / Confirm that the Comp Rate entered and the associated Frequency aredisplayed correctly.
Next, you will be reviewing the Earnings Distribution page to ensure the dates are correct.
Click theEarnings Distributionlink.
18. / EARNINGS DISTRIBUTION
PAY RATE CHANGE
As needed, you may need to update information for each distribution line on the JobEarnings Distribution. The new payrate should have carried over from the Compensation page. Make sure the begin date is correct for every distribution line.
19. / In this example for Eric Thomas' merit increase, the Earnings Code, Distribution Percent, Pay Rate/Amount, and Budgeted FTE are correct and do not need updating. Also, the Chartstring for the distribution also remains unchanged.
The merit for Eric Thomas is effective June 1, 2009.
For Eric's merit related distribution change, enter "06/01/2009" into theBegin Datefield.
20. / Confirm the display of the Job Earnings Distribution changes that you have made. If correct, you are ready to save your data.
Click theSavebutton to save the Pay RateChanges made.
21. / Congratulations, you have completed the Pay Rate Change/Stipend lesson.
For further transaction support, you can access more Quick Reference Guides (Step Sheets) at:
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Date Created: 7/15/2009