Compensation planning is a strategic process in human resource management aimed at developing a competitive salary increase or compensation scheme that aligns with employee contributions and the company’s financial capacity. Through Mekari Talenta, you, as an HR Admin, can access the Compensation planning feature that automates remuneration management, from budget setup to an integrated salary review cycle.

Important
This feature is by default accessible by Super Admins. However, access for other roles can be customized on the settings page. Learn about setting Access roles here.

Below are the steps to create a salary increase or compensation plan through Mekari Talenta.

1. In the “Payroll” menu, click Compensation planning.
   

2. To create a compensation plan, click “Create compensation planning”.
   

3. Then, you can fill out the Compensation info form as explained below.
   

4. Once all information is fully completed, click “Continue”.
   

5. Next, you can set up Budgeting & eligibility (budget and criteria for the compensation plan). Activate the “Enable budgeting” toggle to plan the salary increase budget allocation.
   
   a. Then, you can select the Budget method option “Apply to all selected employees” if the salary increase budget applies to all employees to be selected in the next step. Then, fill in the budget in the Total budget field.
   
   b. Alternatively, you can choose “Set different budgets by criteria” if the salary increase budget varies depending on the criteria you set. Select criteria by clicking “Criteria by”, also specify the “Unit” if there is an SBU. Then, select “+Add [selected criteria name]”.
   
    

   You can then check the checkboxes for the detailed selected criteria as in the example below.
   
   You can also select criteria details for a specific Unit you have chosen by clicking “+ Add [selected unit name]”. You can remove them by clicking the “-” icon.
   
   Next, you can check the SBU Structure checkbox and specify the salary increase budget for that SBU structure.
   

6. In the next section, you can set the criteria for employees eligible for a salary increase. Click “Enable employee eligibility”, then click “Manage”.
   

7. The following sidebar will appear. You can apply salary increase eligibility criteria based on the type as explained below.
   

No.	Appraisal Eligibility Name	Description
1.	Set appraisal by general criteria	This section is used to determine the basic qualifications of employees. If checked, Admins can filter eligibility based on Branch, Organization, Employment status, and others (e.g., permanent employees only) to make the review process more objective. If you select this eligibility type, click “Add criteria” to choose employee criteria. Then, check the details of the selected criteria by clicking on the checkbox.
2.	Set appraisal by attendance criteria	Check this if the criteria are based on attendance behavior during a certain period. The system will filter employees based on absence rates, compliance with clock-in/out, and punctuality.   1. Absent: Filter salary increase eligibility for employees based on absence rate criteria. 2. No clock in: Filter salary increase eligibility for employees based on no clock in occurrences. 3. No clock out: Filter salary increase eligibility for employees based on no clock out occurrences. 4. Late clock in: Filter salary increase eligibility for employees based on late clock in occurrences.   Important Understand the following terms to set criteria. - Is less than: Less than. - Is exact: Exactly equal. - Is greater than: Greater than. - Days: Number of days. - In the last [number] months: Within the last [number] months. As shown in column 1 in the image above, the criteria for employees eligible for a salary increase are those who have less than 15 days of absence (absent/alpha) in the last 9 months.
3.	Exclude employee who have received past appraisal	If this option is enabled, the system will automatically exclude employees who have already received salary adjustments or reviews in the previous cycle. This aims to ensure fairness and avoid duplication of compensation in close periods. If checked, you can select the compensation name by clicking “Select Compensation name” that has been applied previously by clicking the checkbox as shown below.
4.	Exclude employee who have reprimand	If the salary increase criteria are based on work behavior, you can select this criterion. If checked, employees with disciplinary records or warning letters (SP) during the current period will automatically be considered ineligible for compensation adjustments. Use same effective date Select this if the effective date for each level of Reprimand is the same. You can set the Effective date and specific types of Reprimand or warnings. You can also delete them by clicking “-”. 2. Each reprimand has a different effective date Select this if the effective date for each type of Reprimand differs. You can specify the type of Reprimand and its Effective date as in the example below. Add a type of Reprimand by clicking “+Add reprimand”.

8. If the budget and eligibility settings are correct, click “Save”.
   

9. Then, click “Continue” to proceed to the last page.
   

10. You will be directed to the following page. This section is used to determine the "benchmark" or framework the system uses to calculate salary increases fairly. Click “Structure name” to select a salary structure that was previously created in Mekari Talenta (as in the selected example: "actual salary range"). You can use the shortcut to view the details of the selected salary structure without leaving the planning page by clicking “View salary structure”.
    

11. Then, you can select employees specifically or in bulk. The employee list shown is already filtered based on eligibility criteria (such as performance, tenure, or attendance) set previously.
    

12. Next, select the employees you want to include in this salary increase proposal on the left side of the page. After selecting, their names will appear on the right side titled Assigned employees. You can also remove selected names by clicking the “-” button. If the list of employees is correct, click “Assign employee”.
    

13. The selected employee names will then appear in the following section. You can click “Update employee” if you want to change the selected list. Click “Hold appraisal” to pause the salary increase process for those employees. Additionally, if there are many employee names, you can navigate through the list by clicking the “<” or “>” icons.
    

14. Distribute salary increases based on performance scores, certain factors, and current salary in percentage increases in the Salary adjustment matrix. In the example below, Below (1%) refers to employees whose current salary is below the minimum salary structure limit and are proposed a 1% increase. Then, Normal (5%): employees whose current salary is within the (middle) salary structure range are proposed a 5% increase. Lastly, Above (10%): employees whose current salary is above or exceeds the maximum salary structure limit are proposed a 10% increase.
    

15. Click “Save & calculate” to save and calculate the proposed salary increases for employees.
    

16. You will then be directed to the detailed page of the compensation planning proposal you created, which will automatically be in “Draft” status. On this page, you can review the plan details before submitting it to key parties in the Approval line.
    

17. Once the Compensation planning has been Submitted, its status will change to Awaiting approval, meaning it is in the approval process by authorized parties (such as supervisors or HR). You can monitor employees proposed for salary increases based on their approval status by clicking the “Awaiting approval” (under review), “Rejected” (proposal reviewed and rejected), or “Approved” (proposal reviewed and accepted) tabs.
    
     

    Important
    Once all proposals have been processed (no data remains in the Awaiting Approval status), you can immediately perform synchronization using the Update Payroll Component feature. After this process succeeds, the payroll Transaction ID will automatically appear in the details page of Compensation Planning as a reference for integration.

This concludes the guide on how to create compensation planning through Mekari Talenta. Next, you can learn how to manage compensation planning, such as View details, Edit, and Delete by reading the guide here.