Concept: Locality Pay Areas
When you set up locality pay areas in Workday, you can group multiple work locations into an
area and assign a percentage of additional base pay to it. Example: You can group employees in
San Francisco and Los Angeles into the locality pay area for California. Then, you can
configure that area to add 25 percent to their base pay.
You can leverage the locality pay area percentage in calculated compensation plans.
Using locality pay areas is helpful when you:
- Have set base salaries for identical positions within given compensation grades and steps.
- Have multiple work locations with different costs of living or other unique attributes.
- Use multiple complex calculations to determine additional base pay by location.
This feature is available for all customers.