Pay Scale Groupings

Pay Scale Groupings (PSG)


In this section, you define PSG for allowances. These groupings are used to select employees based on their eligible compensation benefits. To achieve this, each PSG is assigned to a combination of pay scale level, pay scale area, pay scale type, pay scale group and ESG grouping for Collective Agreement Provision (ESG for CAP).

These groupings determine the eligibility of the employees for various allowances, reimbursements and perks.

To do this you:

 Define PSGs for allowances - In this activity, you define PSGs for allowances to differentiate between employee groups. These groupings determine which benefits apply to a particular group of employees.

Example - Consider a company Thumbtacks Pvt Ltd., with two levels of managers and three levels of regular employees. We will define allowance groupings, such that each level of managers or employees get the benefits entitled to them as per the employers policies.

To enable this:

1. Identify the different benefits each person is entitled to

2. Create groupings for each category, and assign the privileges

We can now proceed to create employee groupings starting with the top management. Working down the corporate ladder we have:

• MN01 for senior managers who receive the benefit of a company provided House, Computer, Medical Allowance, Car with a driver and an additional 5% Provident Fund (PF) contribution from the employer.

• MN02 for junior managers who receive the benefit of a company provided Medical Allowance, Car and an additional 5% PF contribution from the employer.

• EE01 for senior employees who receive the benefit of a company provided Car and Cellular Phone.

• EE02 for junior employees who receive the benefit of a company provided Cellular Phone only.

• EE03 for office boys who receive the benefit of a lunch allowance

In a similar manner, you can create any number of 'PSGs for Allowance' based on the diff benefits you wish to provide for your employees.

Activities

3. Enter a 4 digit alphanumeric value for each PSG for allowances in the AlGrp field

4. Enter a description for the grouping in the AlGrp desc. field and save your entries.


 Assign PSGs for allowances - In this activity you assign pay parameters to each 'PSGs for Allowance' created in the previous step, based on:

 Pay Scale Area

 Pay Scale Type

 Pay Scale Group

 Pay Scale Level and

 ESG Grouping for Collective Agreement Provision (ESG for CAP)

Example - Looking at the company Thumbtacks Pvt Ltd., for who we defined 'PSG for Allowance' in the previous step. Consider the grouping MN01 for senior managers and MN02 for junior managers. To associate the benefits for each group, we:


 Assign the Pay Scale Area Bangalore, Pay Scale Type Production, PSG Sr. Mgr., PS Level 05 (the highest in Thumbtacks Pvt Ltd.), and CAP as zero for the grouping MN01.



 Assign the Pay Scale Area Bangalore, Pay Scale Type Production, PSG Jr. Manager, PS level 04, and CAP as zero for the grouping MN02.



You can now assign other PSGs for Allowance for your company in a similar manner. Activities

1. Enter the PS Area, PS Type, ESG for CAP, PSG and the PS level based on your company’s requirements.

2. Enter the Allowance grouping in the AlGrp field for which the above criteria apply, and save your entries.