Concept: Minimum Wage in Compensation

Enforce Minimum Wage

When you select the

Enforce Minimum Wage

check box, Workday:

Enforces the minimum wage rate set on the plan.

Triggers a critical error if you try to assign an

Amount

less than the default

Minimum Wage

configured on the hourly plan.

When you assign minimum wage to a worker, you must enter an assignment amount that's equal to or greater than the recommended rate in the

Minimum Wage

display field, which uses the amount from the hourly plan. These validations help identify and reduce errors due to assignments or changes to a worker’s mandated minimum wage rate.

When the

Enforce Minimum Wage

check box is cleared, Workday doesn’t display a critical error.

Updating Hourly Plans with Minimum Wage

When you change them minimum wage type on an existing hourly plan, consider both the current and proposed minimum wage types when applying changes to workers' assignments:

Current Minimum Wage Type	Proposed Minimum Wage Type	Recommended Related Tasks or EIB
No minimum wage Custom Minimum Wage	Custom Minimum Wage No minimum wage	You can use the Set Up Hourly Plan Adjustment task. Note: You can’t assign an Amount using the Edit Hourly Plan task or the Put Compensation Plan EIB for these minimum wage types.
Payroll Authority Minimum Wage Calculated Minimum Wage	No minimum wage Custom Minimum Wage	You can: Update the minimum wage type on the Edit Hourly Plan task. Enter an Amount on the Set Up Hourly Plan Adjustment task.

Currency and Minimum Wage in Compensation

As a best practice to help you maintain compliance, Workday recommends that when you configure the

Currency

field on the hourly plan, consider:

Currency Configured on Hourly Plan?	Minimum Wage Type Selected?	Considerations
Yes	Payment Authority Minimum Wage	Workday: Converts the currency of the Payment Authority Minimum Wage rate to the currency specified on the plan. Displays worker assignments in that currency.
No	Payment Authority Minimum Wage	Workday assigns currency based on the pay range grade or grade profile, if configured, or your tenant's default currency. The currency set on the Payroll Authority Minimum Wage rate doesn't affect plan assignments.
Yes	Calculated Minimum Wage	Workday converts Calculated Minimum Wage to the currency specified on the plan.
No	Calculated Minimum Wage	Workday assigns currency based on the pay range grade or grade profile, if configured, or the tenant's default currency.

Minimum Wage in Compensation Events

You can use the

Minimum Wage

field on the

Hourly Plan

tasklet of compensation events to review and verify the minimum wage rate configured on the plan. Workday populates this field based on:

The minimum wage configured on the hourly plan.

The compensation event’s effective date.

The

Hourly Plan

tasklet automatically populates the value of the

Minimum Wage

field into

Amount

only when you first assign an hourly plan to a worker. For existing assignments, Workday doesn’t automatically update the

Amount

assigned to a worker. If the minimum wage on an hourly plan has changed, Workday displays:

The updated rate in the

Minimum Wage

field.

The current

Amount

assigned before the worker’s hourly plan changed.

If you don’t manually update the assignment

Amount

, there could be differences between the

Minimum Wage

field and the

Amount

assigned to a worker.

As a best practice to help you maintain minimum wage assignments for compliance, we recommend that you:

Enforce minimum wage on your hourly plans.

Schedule mass operations for minimum wage to run daily on the current date.

Report Fields for Minimum Wage

You can use these fields to customize reports and to configure calculations for hourly plans with Calculated Minimum Wage:

Field	Business Object	Description
Minimum Wage		Indicates if an hourly plan has a configured minimum wage.
Minimum Wage Amount	Compensation Plan Assignment	Displays the minimum wage rate for a worker based on: Their hour plan assignment. The effective date.
Minimum Wage Amount - Current	Compensation Assignment Proposal	Displays the current minimum wage rate for a worker based on the effective date.
Minimum Wage Amount - Proposed	Compensation Assignment Proposal	Displays the proposed minimum wage rate for a worker based on the effective date.