# Compensation Policies

A **Compensation Policy** puts a Salary Template into effect over a scope and a date range. Found
under **Payroll → Configuration → Compensation Policies**. Verified live on demo.blueonehr.com,
2026-09-13.

## What a policy carries

Each policy has a scope (e.g. **Company-wide**), the Salary Template it applies, an optional Pay
Grade, an effective-from date, an optional effective-to date, and a status. On the demo workspace,
one policy existed: **Company-wide**, applying the **Standard L1** template, no Pay Grade, effective
from **1 January 2026**, no end date, **Active**.

![Compensation Policies: one Company-wide policy applying the Standard L1 template from 1 January 2026, no end date, Active](https://docs.blueonehr.com/uploads/images/gallery/2026-10/SEEpayroll-compensation-policies-list.png)

## Only one policy was observed

With a single, company-wide, still-open policy on this workspace, this pass could not observe how
multiple overlapping policies (e.g. a company-wide default alongside a grade-specific override) are
prioritised, or what happens at the boundary when one policy's effective-to date is reached. Both
would need a workspace with more than one configured policy to verify properly — do not describe
policy precedence rules that were not actually observed.

## Related

- [Salary Templates](https://docs.blueonehr.com/books/payroll/page/salary-templates) — what a policy applies.
- [Contracts](https://docs.blueonehr.com/books/payroll/page/contracts) — where an employee's actual wage ends up, regardless of which
  policy or template it traces back to.