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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Pay Rate Changes based...
Microsoft Dynamics GP (Archived)

Pay Rate Changes based on Anniversary/Years of Service

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Posted on by WindyCityGP 1,069

Is it possible to set up an hourly pay code that has a set starting rate, but increments by some amount based on years of service (ie 10 cents after 1 year, 50 cents after 5 years, etc)?  If it is possible, how would affect an employee that has been with the company 5 years, but they are recently assigned this new pay code, so their rate should be the base pay rate amount, plus the 50 cents for years of service?

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  • Sherlene Sorenson Profile Picture
    Sherlene Sorenson 967 on at

    I don't know of a way to do this, but it would be a cool suggestion for a feature request!

  • Suggested answer
    Thomas Franz Profile Picture
    Thomas Franz 1,105 on at

    This sounds like "Salary Matrix" functionality that is available from with the HR module in GP.

    Help file info on this window:

    Adding a salary matrix

    Use the Salary Matrix window to create a salary matrix. A salary matrix can have multiple rows and columns of information. For example, if your company has a salary matrix for production workers, your column headings might be 0-2 months, 3-6 months, 7-12 months, and 13-24 months and your row headings might be Labor Grade 2, Labor Grade 4, Labor Grade 6, and Labor Grade 8.

    To add a salary matrix:

    1. Open the Salary Matrix window.
      (HR & Payroll >> Setup >> Human Resources >> Salary Matrix)
    2. Choose New Table and enter the name of the table you’ll create. Choose OK.
    3. Select the pay unit.
    4. Choose New Column and enter a column heading. Column headings are usually lengths of service; for example, 0-2 months, 3-6 months.
    5. Choose New Row and enter a row heading. Row headings are usually levels of a position; for example, Labor Grade 1, Labor Grade 2.
    6. Enter the low salary in the top field of each column, the middle salary in the middle field of each column and the high salary in the bottom field in each column.
    7. Continue adding new columns and rows and entering low, middle, and high salaries for each column and row.
    8. Close the window to save your changes

    Hope this helps!

  • Suggested answer
    Sherlene Sorenson Profile Picture
    Sherlene Sorenson 967 on at

    The salary matrix is a cool analysis feature that not enough people probably know about or use, but I am not sure it would work for the purpose of WindyCityGP's question.  The Salary Matrix is applied to a Position Code and Pay Code Combination. It's not going to automatically look at the length of service and stick them in the next time band (column) to apply the new payrate. There would need to be some very specialized set up and customization to make the Salary Matrix to work in this case.

    It's possible they could use the Payroll Mass Update utility, but that would still be a lot of work and have room for user error, because they would basically have to use the update feature for every level individually (rather than setting up the table in GP).

    This sounds to me like it would require a customization or a new feature.  In the meantime, if you have a lot of employees, you could use macros at the very least, if you export a list of current payrates with Employee ID, hire date, position or employee class that determines the payrate changes. Do the manipulation in Excel to create a column with the new payrate, and then push the data back into GP with a macro.

  • WindyCityGP Profile Picture
    WindyCityGP 1,069 on at

    By itself, I don't think the Matrix will provide the solution I'm looking for since it won't change the employee's rate; plus, I did one Matrix update in our test environment and it has been running for an hour.  I'm going to look into using it in combination with Pay Steps.  This too, however, looks as though it would need to be run before every payroll.

  • WindyCityGP Profile Picture
    WindyCityGP 1,069 on at

    Although it appears from the limited testing I did that Pay Steps would work, due to the volume of Pay Codes, the number Employees we have, and the performance of this process itself, it won't work in our situation.  If it would allow us to select a range of Pay Codes to run, rather than 1 by 1,  it may have been possible.  Even using a macro, it would have taken hours, if not more.

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