benefits of employees
TRANSCRIPT
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WAGES AND SALARY
ADMINISTRATION
BY:
MARIA LISETTE C. ERMINO, R. N.
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TOPICS :
COMPONENTS OF COMPENSATION
EMPLOYEE BENEFITS AND SERVICES
OBJECTIVES OF COMPENSATION
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COMPENSATION DEFINED
Something, such as money, given or received
as payment or reparation, as for a service or
loss.
Compensation includes direct forms such asbase, merit, and incentive pay and indirect
forms such as vacation pay, deferred payment,and health insurance.
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The basic concept of compensation
administrationcompensation managementis
rather simple: employees perform tasks for
employers and so companies pay employees
wages for the jobs they do.
Compensation is an exchange or a transaction,
from which both parties employers andemployees benefit: both parties receive
something for giving something.
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From the employer's perspective, compensationis an issue of both affordability and employee
motivation.
In addition, some employers and managers
believe pay can influence employee work ethic
and behavior and hence link compensation toperformance.
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WHAT ARE THE OBJECTIVES OF
COMPENSATION?
efficient maintenance of a productive workforce -
the companys ability to attract and retain highly
qualified and skilled employees
support of the companys goals and each entitysgoals - must be within their approved operating
budgets
external competitiveness - is how a company's
rates of pay compare to those of its competitors
recognition of individual performance - pay
increases are based on individual performance
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COMPONENTS OF COMPENSATION
Compensation has become a far morecomplicated issue than just deciding how much topay your employees. Employees also have greater
expectations of what should be included in theircompensation packages, and they may demandspecific benefits. Costly or not, building a fair andattractive compensation packages is critical for
attracting and retaining employees. When settingup your compensation package, you need toconsider the following components:
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COMPONENTS OF COMPENSATION
salary and wages
This is usually the single largest component of acompensation package and, not surprisingly, themost common point of comparison used by
employees and potential employees. Salary shouldbe tied to a persons skills and experience.Subsequent increases need to be based on anemployees performance, value and contribution toan organization.
bonuses
Employee bonuses, which are usually paid in a single
lump sum at the end of the year, are one way of
providing performance incentives.
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COMPONENTS OF COMPENSATION
retirement plans
401 (k) plans have become popular because they are
relatively easy to administer and are less expensive
than traditional pension plans. Many employees like
these plans because they maintain some control over
the amount of their contribution and how the money
is invested.
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What Does 401(k) Plan Mean?
A qualified plan established by employers towhich eligible employees may make salary
deferral (salary reduction) contributions on a
post-tax and/or pretax basis. Employersoffering a 401(k) plan may make matching or
non-elective contributions to the plan on
behalf of eligible employees and may also add
a profit-sharing feature to the plan. Earnings
accrue on a tax-deferred basis.
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COMPONENTS OF COMPENSATION
time offand flexible schedules
This include holidays, vacations, sick days andpersonal days. An employer unable to offercompetitive salaries may close part of the gap by
offering more time off or flexible work hours.
miscellaneous compensation
Other forms of compensation to consider include
employee assistance programs, which can provide
everything from psychological counseling to legal
assistance; discounts on company products; use of a
company car etc.
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6 Basic Employee Benefits in the Philippinescovered by the Philippine Labor Code
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Republic Act No. 8282, otherwise known as the
Social Security Act of 1997, refers to the Social
Security System in the Philippines that is initiated,developed and promoted by its Government. The
social security system is aimed at providing
protection for the SSS member against socially
recognized hazard conditions, such as sickness,disability, maternity, old age and death, or other such
contingencies not stated but resulted in loss of
income or results to a financial burden.
1. Social Security Systems (SSS)
Contributions
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The employee and his/her employer(s) are to
contribute for the medical insurance of the said
employee in accordance to the Republic Act 7835 on
Medicare Program which is administered by the
Philippine Health Insurance Corporation (Philhealth).
Monthly employee contribution depends on the
employee's actual monthly salary. The contribution
schedule is provided by Philhealth.
2. Contribution to National Health
Insurance Program (NHIP)
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The employer(s) is required to contribute per month
not less than P100.00 to the employee's HomeDevelopment and Mutual Fund. In accordance to the
periodic remittance schedule provided by HDMF, the
employer(s) will remit this contribution, in addition
to that of the employee's, which is to be deductedfrom his/her payroll.
3. Contribution to Home Development
and Mutual Fund (HDMF)
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As mandated by the Presidential Decree No. 851, the
employee shall receive a bonus salary equivalent to
one (1) month, regardless of the nature of his/heremployment, not later than December 24 of every
year.
4. The 13th Month Pay
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Book III, Chapter III of the Labor Code of the
Philippines covers the employee's benefit for Service
Incentive Leaves. According to Article 95, anemployee who has rendered at least one year of
service is entitled to a yearly five days service
incentive leave with pay. (See: Article 95, Conditions
of Employment)
5. Service Incentive Leave
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Under Article 83, the employee is provided a one-
hour employee benefit for regular meals, whenworking on an eight (8 hour) stretch. Employees are
also provided adequate rest periods in the morning
and afternoon which shall be counted as hours
worked. (See: Article 83, Conditions of Employment).
6. Meal and Rest Periods
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All these provisions apply in addition to every newemployee benefits furnished that are in excess of what
is stipulated by the Philippine Labor Code. Otherregular Philippine employees benefits furnished by theemployer(s) but are outside of the mandated employeebenefit includes, but not limited to:
Housing and housing plans
Expense Account
Company sponsored vehicle
Paid Holiday and Vacation
Educational assistance or plans to the employee
and/or his direct dependents.
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BENEFITS AND SERVICES FOR CGH
EMPLOYEES SSS CONTRIBUTION
PHILHEALTH CONTRIBUTION
PAG IBIG CONTRIBUTION
13TH MONTH PAY EVERY 1ST WEEK OF DECEMBER
P35 MEAL ALLOWANCE FOR THE 1ST 8 HOURS THEN
ANOTHER P35 MEAL ALLOWANCE FOR THE NEXT 4-8
HOURS OVERTIME DUTY 35 DAYS LEAVE WITH PAY
18 DAYS VACATION LEAVE
17 DAYS SICK LEAVE (WITH MEDICAL CERTIFICATE OR
CONFINEMENT)
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BENEFITS AND SERVICES FOR CGH
EMPLOYEES 2 DAYS OFF EVERY WEEK
P100 % WHEN HOSPITALIZED ON LABS, MEDICINES
BU
T WILL PAY THE EXCESS IN ROOM RATE 50% FOR NEXT OF KIN (PARENTS, WIFE/HUSBAND
AND CHILDREN)
1, 000 FREE WORTH OF MEDICINES CUT OFF EVERY
MAY EVERY YEAR
20% DISCOU
NT ON MEDICINES WHEN BILLED ASOUT PATIENT
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