Pay Policies
Pay policies define how wages are calculated through two distinct rule types that work together to create comprehensive compensation structures. Base rules determine the primary hourly rate for any given time period, while loading rules add supplementary payments on top of the active base rate.
The system operates on a foundational principle: only one base rule can be active at any time, but multiple loading rules can apply simultaneously.
Pay Structure
Pay calculation follows a clear hierarchy starting with the employee's contract rate as the foundation:
Final Hourly Rate = Active Base Rate + All Applicable Loading Rules
Calculation Flow Example:
- Contract Rate: $25/hour (baseline)
- Base Rule Applied: Overtime (1.5x contract) = $37.50/hour
- Loading Rules Applied:
- Travel allowance: +$8 lump sum (for the shift)
- Hazard pay: +$3/hour
- Final Hourly Rate: $37.50/hour + $3/hour = $40.50/hour
- Shift Total Including Lump Sum: $40.50/hour + $8 lump sum
The key principle is that base rules replace the foundation, while loading rules add to whatever base is currently active.
Base Rules
Base rules determine the foundational hourly rate and are mutually exclusive - only one can apply at any given moment. The system evaluates base rules in priority order and applies the first matching rule.
Common base rule scenarios:
- Overtime rates (1.5x after 8 hours daily, 2x after 12 hours)
- Double-time rates (2x on public holidays)
- Weekend premiums (1.3x on Saturday/Sunday)
Priority Matters: If an employee works overtime on a weekend, only the higher-priority rule applies. If overtime (Priority 1) and weekend premium (Priority 2) both match, the employee receives the overtime rate, not the weekend rate.
Loading Rules
Loading rules add supplementary compensation on top of the active base rate. Multiple loading rules can apply simultaneously, making them cumulative rather than competitive.
Common loading rule scenarios:
- Reimbursements: Tool allowance (+$1.50/hour), travel time (+$8/hour)
- Special conditions: On-call availability (+$4/hour), bilingual service (+$2/hour)
- Consecutive days worked: +$3/hour for each day worked beyond 5 consecutive days
Cumulative Nature: An employee may qualify for multiple loadings at once. For example, someone who is on-call, provides bilingual service, and is working beyond 5 consecutive days could receive +$4 + $2 + $3 = +$9/hour on top of their base rate.