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Administrator Guide
Last Updated: 2025-03-14
Create Hourly Plans

Create Hourly Plans

  • Set up compensation components and grades.
  • Security in the Core Compensation functional area:
    • Set Up: Base and Plan
       domain.
    • Set Up: Payroll Authority Minimum Wages View
       domain. This domain is required only if you want to view the
      Payroll Authority Minimum Wages
       report and
      Payroll Compliance Update Documentation
       report.
You can create or update an hourly plan that you assign to eligible employees. You can also annualize hourly plans by setting the annualization factor on the
Maintain Frequencies
 task.
  1. Access the
    Create Hourly Plan
     task.
  2. From the
    Minimum Wage
     prompt in the
    Minimum Wage
     section:
    Option Description
    Calculated Minimum Wage
    Select this option to use an
    Amount Calculation
     in the Compensation category when defining minimum wage on the plan.
    When you use this option, you can use one hourly plan for workers across multiple countries by not selecting an option for
    Currency
    .
    Example: You want to calculate your minimum wage by using a minimum wage rate maintained by Payroll while paying 2.00 USD above the Workday-delivered minimum wage rate.
    Custom Minimum Wage
    Select this option to enter a flat rate
    Amount
     that defines the minimum wage in the regulatory region where this hourly plan is in use.
    Example: You want to set minimum wage of the hourly plan to 18.00 USD.
    Payroll Authority Minimum Wage
    Select this option to use the rates delivered by Workday in the Payroll Authority Minimum Wage tables.
    When you use this option, you can set up separate hourly plans by country to specify a
    Currency
     per hourly plan.
    In compensation events, the
    Minimum Wage Amount
     is based on the current
    Minimum Wage
     rate in the Payroll tables as of the event’s effective date.
    Workday uses the worker's location to:
    • Identify which rates to use.
    • Select the highest rate from federal, state, and local authorities.
    Example: You want to assign the mandated minimum wage rate to hourly workers in San Francisco as of 07/01/24, which is 18.67 USD.
    When a worker is assigned to multiple positions, Workday assigns a minimum wage rate based on the location of the position associated with the compensation business process.
    You can access the
    All Payroll Authority Minimum Wages
     report to review the minimum wage rates.
  3. (Optional) In the
    Minimum Wage
     section, select the
    Enforce Minimum Wage
     check box to display a critical error message in compensation events.
    This critical error prevents users from assigning an
    Amount
     that's below the minimum wage rate configured on the hourly plan.
  4. In the
    Hourly Defaults
     section:
    Option Description
    Compensation Element
    Compensation elements store the earnings associated with compensation.
    If you select a compensation element designated as base pay, Workday includes the compensation for a plan in the employee's base pay calculation.
    Currency
    If configured, the hourly plan's
    Currency
     overrides the currency setting:
    • The compensation grade or grade profile.
    • Your tenant's default currency.
    As a best practice, Workday recommends that when you configure the
    Currency
     field, consider how it interacts with these minimum wage types:
    • Payment Authority Minimum Wage
    • Calculated Minimum Wage
    Frequency
    Select
    Hourly
     so that the employee gets paid by the hour.
    Workday calculates pay for employees by using the employee's scheduled weekly hours or a user-defined annualization factor, as defined in the frequency definition.
  5. In the
    Plan Eligibility
     section, select 1 or more rules.
    Employees are eligible if they meet the qualifications of any 1 rule. If you select multiple eligibility rules, Workday evaluates each rule independently to determine employee eligibility for the plan.
  6. In the
    Plan Eligibility
     section, select the
    Exclude from Merit
     check box if you don't want this plan to be available when you initiate a compensation review process.
You can:
  • Assign the plan to employees on the
    Request Compensation Change
     task or web service.
  • Add the plan to a compensation package on the
    Create Compensation Package
     task.
  • Access the
    Hourly Plan
     and
    View Hourly Plan Usage
     reports.
  • Access the
    Edit Hourly Plan
     task. You can update default values only for plans not yet assigned to employees. You can, however, update the
    Compensation Element
     field regardless if the plan is assigned or not.
  • Update default values for new and assigned plans or adjust existing assignments using the
    Set Up Hourly Plan Adjustment
     task. You can only use this task for hourly plans configured without minimum wages or configured with Custom Minimum Wage.
  • Hide the compensation plan type from specified groups of workers using the
    Worker Data: Compensation Plan Type
     domain in the Core Compensation functional area.