Benefits of Employees

8/4/2019 Benefits of Employees

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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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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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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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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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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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