Longevity Pay

Overview

Longevity Pay is a form of compensation based on an Employee’s length of service. In Workday, an Employee’s Longevity Pay is based on their Job Profile and classifications while having an active status on the first day of the month. The calculated amount is determined by Longevity months, and costing is allocated in accordance with current costing allocations. Understanding these criteria and calculations is vital for precise longevity pay processing. Additionally, a report is available to identify employees with job classification overrides.

Key Points:

• Workday determines eligibility to pay Longevity based upon the job classification Y – Yes (Longevity Pay Eligible) in conjunction with the employees’ status on the first of the month.
• Longevity months are defined as 30 days. If you are manually entering or adjusting longevity state service you must use one month = 30 days in order for the calculation to be correct.
• Longevity Payment costing is determined by the current costing allocations on the primary position.

How Workday determines eligibility to pay Longevity

Longevity is paid if Y – Yes (Longevity Pay Eligible) is listed under either the Job Profile Classification or the Position Override Job Classification.

Employee must be in a paid status on first working day of the month to receive Longevity.

IMPORTANT: Configuration is looking at 1st of the month not first working day of the month, payroll offices must adjust if the employee was not working/in a paid status on the first working day of the month.

Job Classification Overrides

Start Change Job business process can be used to override Longevity job classification for an Employee. For more information on this, please review the Start Job Change Job aid on the Workday Help site.

Job Classifications on Job Profile and Position Report: This report returns job classifications on a job profile and/or on position, if the position override exists for specified job classification.

How Longevity is Calculated

• Longevity Balance + Hazard Balance (Days) / 30 = Longevity Months
• Longevity Pay is calculated as $20.00 per month for each two years of lifetime service credit as an Employee of the State of Texas, up to and including 42 years of service.
• Longevity payment is based on service months completed PRIOR to the payroll that is In Progress.
• Example: 3450/30 = 115 Longevity Months
  115/12 = 9.58 years, this falls in Over 8 but less than 10 so the Employee would be due an $80 longevity payment

IMPORTANT: Longevity payments funding follows the current worker position costing allocations on the primary position