What is an increment?
An Increment is an increase or addition to an Employees pay, especially one of a series on a fixed scale.
What is the increment process?
This process is used to automatically create a new salary record for an employee, which moves them to the next point on their pay scale.
This applies only to employees who have a pay scale salary.
Increments cannot be automatically created for Personal Rate salaries
Using the Increment Process removes the requirement to manually create a Salary Amendment for standard annual/periodic salary increments. This can happen for all / a group of Employees in an organisation on one common date in a year.
This may also be applied to a date specific to the employee's post appointment e.g. 12 Months from the commencement date or on turning 18 / 21 years old.
When Increments are run from the CorePay side, increments are generated during a payroll run and they will normally have a reference / reason code of pay wiith a number indicating they were generated from CorePay.
When increments are run from CorePersonnel, they are generated by the nightly Increment job. They are normally generated a fixed no. of days before the due date to allow for HR/Payroll to approve/reject the increments.
Key CorePersonnel increment attributes
Increment due date
This is the date that the increment is due to be applied to the post appointment salary record. For example, if an employee starts in the organisation on 01-Jan-2018, the employee may be due an increment on 01-Jan-2019.
Managing increment due dates
Increment due date and the Increment hold indicator can be captured on a salary record during the appointment stage.
This may be manually entered by the user or may be system calculated based on the Terms and Conditions assigned to the Post Appointment
Increment Due Date and Increment Hold Indicator can be updated for an employee directly on the Pay Profile screen
Increment Details are managed at a Post Appointment level. The Increment Due Date is associated with a Salary Record on the Post Appointment, and not on the Employee record itself
Therefore, if the Employee had multiple Post Appointments, it is important to note to record the Increment Due Date for each Post Appointment as is relevant.
Increment system job
CorePersonnel nightly job that reviews all employees' increment due dates, creates a new salary record relevant to the pay scale point increment rules then it will generate a new increment due date for the employee's salary.
Example: Increment due date is set to 01-Jan-2019. so on that date, the increment system job will identify that the employee is due an increment, will move the employee to next point of scale by creating an approved salary amendment and aligning this to the employee's pay profile. The new increment due date will be updated to 12 months later, 01-Jan-2020.
Increment hold indicator
This ensures that the increment job does not process for the employee on the increment due date.
Example: The increment hold indicator was set against an employee's record on the 01-Jan-2019, when the increment system job reviewed the employee's due date on the 01-Jan, no increment will be applied to the employee's record.
However, if the increment hold indicator was removed a week later, and the increment due date was still there for the 01-Jan-2019, the job will process it at that point and the pay will be back dated for the seven days missed.
Pay scale point increment rules
Rules are defined on each pay scale point to control:
The next point is available.
The progression pay scale and point to be used when the maximum point has been reached on the current pay scale.
The length of time on point (if different to the standard 12 months).
A bar point will stop an employee from incrementing beyond that point.
Age restrictions on progression to the next point.
Increment due date will not be removed when top of scale is reached:
If a manual salary amendment is made to bring them to the top point on the scale the increment due date will not be removed either.
If bar points are used while this will also not clear the increment due date as the top of the scale will not be reached by the increment process. The bar point will prevent it from doing so.
The increment due date will only be removed if the increment process brings the scale to the top point.