This document outlines the steps necessary to set up an hour based allowance. Meaning, that the employee is to receive this allowance based on every hour of work performed.

Getting There:

[ SC ] –> Payroll / Classification Codes


The payment of allowances is managed through the employees classification (pay class). In this example we'll demonstrate how to pay an hour based allowance.


The Classification

The setting of allowances for various types of hours is driven through the classification code definition.

allowance by hour

The allowance is defined against the penalties tab, which means it applies to all hours irrespective of time of day, where you would drive the allowances via the AM, Day, PM, etc tabs.

The payment of an allowance comes into play where the award definition has a link code of "B" (a code for linking the award definition and the allowance code).

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The Award interpreter

award definition

This is the definition on the award interpteter, it's telling us to pay a "B" link code where / when it sees it defined in the classification code. From above we have the B link code on the penalties tab.

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The Allowance code

The allowance code defines the paramaters of how the allowance is to be managed. Here we see that it's to be applied as a factor of 1.00 multiplied by the value of the "Amount" column in the classification code definition (as noted above).

allowance definition

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The Employment type

Whilst the allowance code, the classification code and award interpreter form much of the code of the total award interpretation mechanism, there is still one overriding factor which governs whether the employee will be entitled to the bonus (allowance). That factor is a part of the employment type: You must tick the Loadings check-box to apply the loadings calculations for this type of employment type.

calculate loadings

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Using the combination of the unique elements of employment type, classification code, time zones, award interpreter and allowance codes, you may configure as automated a process as may be necessary. Once you have configured the rules through the award interpreter, everything becomes an automatic calculation.

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See Also