Concepts

What each employee is paid, is kept in their employment history (JOBHIST) record. It is used by the payroll process to pay employees.

• So giving someone a raise, is a simply matter of creating a new "movement" (change) record in their employment history (JOBHIST).

Rules and rate tables

Your company probably has predefined rates by job and grade, in order to ensure fairness and equity. In Umana these are kept in your rate table by date.

• Union contracts typically specify a fixed rate for each job-grade combination. For some jobs they might instead specify a salary range, with a minimum and maximum.

Different kinds of increases

Manual (individual) increases

You can always give an employee a pay raise manually: Just open their employment history and create a new movement.

• The new rate might be the result of a change in their job. If your rate table is properly structure, you just need to enter the new job or grade and Umana will calculate the proper rate.

For employees keeping the same job, there are better tools. Read on.

Regular pay increases

Employees who keep the same job typically get two raises a year.

1. A cost-of-living increase, which applies to all employees
2. A service pay increase, based on his grade and hours worked (up to a maximum)

1. Cost-of-living increases

For unionized employees, these amounts are set out in your union contract. New rates (cost-of-living changes) are defined at precise dates, typically at the beginning of the calendar year.

• Even if you don't have a collective agreement, you probably still have a rate table with rates by job and grade.

Giving increases is a 2-step process: • Updating your rate table, and then • Applying the new rates to employees.

Read about giving cost of living increases.
Read about retroactive payments following a back-dated increase.

2. Service pay increases

These are raises given to employees based on seniority (usually hours worked) in a job.

• There may be other requirements as well, such as performance evaluation by his manager, or additional training hours or certificate. Sometimes these are call merit increases.

Different companies handle service pay increases differently, with different terminology as well.

Read about giving Service Pay Increases in Umana.