Pay rate conversions are used to define the time period for which the compensation plan is specified. If some workers has a annual salary, they should get the same compensation as one with an hourly pay rate. The pay rate conversion is a way to calculate the compensation no matter which periode salary they have.
The screenshot shows how the pay rate conversions are set up in a trial environment.
The calculation for pay rate conversions for the four basic conversions would be:
- Annual = X/1
- Monthly (12) = X/12
- Weekly = X/52
- Hourly = X/2080