Oracle HCM Cloud Global Human Resources Essentials Practice Test 2025 – Complete Exam Prep

In compensation management within Oracle HCM Cloud, tracking base pay at the worker level requires the configuration of a salary basis. The salary basis defines the parameters that govern a worker's base pay, including the currency, frequency of payment (e.g., monthly, bi-weekly), and any associated calculations for increases or adjustments. This setup ensures that each worker's compensation can be accurately managed and monitored based on the company’s compensation policies.

By establishing a salary basis, organizations can standardize how base pay is calculated and ensure consistent application across different employees. This is essential for effective compensation management and reporting purposes. The salary basis acts as the foundation for how each individual's salary is determined and maintained within the HR system.

While the other options related to grading systems (such as grade ladder, grade rate, and grade) are important for structuring and leveling jobs within an organization, they do not specifically address the need for tracking base pay at the individual worker level, which is the focus of the question. To accurately manage and report on worker-level compensation, the salary basis is the critical element in the configuration.