Purpose

Salary Policies define the standard remuneration structure used by the organization to manage employee salaries, recurring allowances, and employment-related costs.

Each Salary Policy centralizes the compensation rules applicable to a specific company or organizational scope, ensuring consistency across employee contracts while supporting standardized salary bands and additional compensation components.

💡 Salary Policies are used when configuring employee contracts and compensation information.

Access Path

People Management → Compensation Packages → Salary Policies

This configuration area is typically managed by HR administrators or compensation managers.

Overview

A Salary Policy represents a reusable compensation framework that combines salary bands, allowances, and costs into a single configuration.

Each policy defines:

General policy information
Salary bands
Recurring allowances
Employment-related costs

This approach provides a centralized and consistent method for managing employee remuneration across the organization.

Process Overview

Configuring a Salary Policy typically consists of the following steps:

Create the Salary Policy.
Configure the general policy information.
Define the salary bands.
Configure recurring allowances.
Configure employment-related costs.
Save the policy.

Salary Policies Landing Page

The Salary Policies landing page displays all configured policies available in the system.

Each record represents a reusable remuneration policy that can later be associated with employee contracts.

The list includes:

Field	Description
Name	Salary Policy name
Companies	Company or organizational scope
Currency	Currency used by the policy
Start Date	Policy effective date
End Date	Policy validity end date
Status	Indicates whether the policy is Active or Inactive

From this page you can:

Create a new Salary Policy
Open existing policies
Refresh the list
Include deleted records
Export the list
Configure visible columns

Creating a Salary Policy

Click Add Salary Policy

(Step 1)

(Step 2)

Complete the general information.

Field	Description	Notes
Name	Salary Policy name	Mandatory
Currency	Currency used throughout the policy	Mandatory
Companies	Company or organizational scope	Mandatory
Start Date	Date when the policy becomes effective	Mandatory
End Date	Policy validity end date	Optional
Total Vacation Days	Number of annual vacation days	Policy reference value
Total Compensation Days	Number of compensation days	Policy reference value
Description	Additional information about the policy	Optional

💡 Fields marked with a red asterisk (*) are mandatory.

Managing Salary Bands

The Salaries tab defines the salary bands available within the policy.

Each salary band represents a remuneration level that can later be assigned according to organizational criteria.

Click Add New to create a salary band.

Each record includes:

Field	Description
Name	Salary band name
Periods	Number of salary periods
Monthly Base	Minimum monthly salary
Monthly Average	Average monthly salary
Monthly Maximum	Maximum monthly salary
Eligibility	Eligibility rules associated with the salary band

Multiple salary bands can be configured within the same Salary Policy.

Configuring Salary Band Eligibility

Eligibility determines which employees can be associated with each salary band.

Eligibility is configured individually for each salary band.

The following criteria are available:

Criteria	Purpose
Areas	Restrict by organizational area
Functions	Restrict by job function
Categories	Restrict by employee category

Only employees matching the configured criteria are eligible for the corresponding salary band.

Managing Allowances

The Allowances tab defines recurring allowance components associated with the Salary Policy.

Examples include:

Bonus
Other allowance types configured in the system

Each allowance contains:

Field	Description
Allowance Type	Type of allowance
Occurrences per Year	Number of payments made annually
Amount Type	Defines how the allowance is calculated
Value	Fixed monetary amount
Percentage	Percentage value (when applicable)
Include in Total	Indicates whether the allowance contributes to the total remuneration

Multiple allowances can be configured within the same policy.

Managing Costs

The Costs tab defines employer-related costs associated with the Salary Policy.

Examples include:

Work Insurance
Other cost types configured in the system

Each cost contains:

Field	Description
Cost Type	Type of employment cost
Amount Type	Defines how the cost is calculated
Value	Fixed monetary amount
Percentage	Percentage value (when applicable)
Include in Total	Indicates whether the cost contributes to the total remuneration

Multiple costs can be configured within the same Salary Policy.

Best Practices

Create separate Salary Policies for different companies or remuneration structures.
Use meaningful names that identify the policy year or organizational scope.
Keep salary bands aligned with the organization's career framework.
Review salary ranges regularly to ensure market competitiveness.
Configure allowances and costs consistently to simplify contract management.

💡 Tip Treat Salary Policies as reusable remuneration templates rather than creating policies for individual employees.

Centralizing salary bands, allowances, and costs within a single policy simplifies maintenance and promotes consistent compensation practices throughout the organization.

Compensation Packages
Benefit Packages
Contract – Cost Management
Areas, Functions & Categories

Salary Policies