Compensation and Benefits

Compensation and Benefits is branch of human resources which focuses on how employees should be paid and what benefits to offer.

1. Compensation and Benefits By Chenaye Mercado

2. What is Compensation and Benefits? is a branch of human resources that focuses on how a company or organization pays his or her employees and provide them with benefits. It includes the process of determining how much an employee should be paid and deciding what benefits should be offered. (Q. Genius, 2022)

3. Compensation Employee Remuneration Is the compensation an employee receives in return for his or her contribution to the organization or company.

4. Benefits These are also known as perks or fringe benefits, are provided to employees over and above salaries and wages. These employee benefit packages may include overtime, medical insurance, vacation, profit sharing and retirement benefits, to name just a few. It shows them you are invested in not only their overall health, but their future.

5. Employee Compensation Benefit Package Salary increase Health insurance offerings (medical, dental, vision) Life insurance Parental leave Retirement plans Vacation and sick time Overtime pay Bonuses, commissions, and merit pay Reimbursement programs

6. Two Elements of Compensation Fixed Pay – base pay that does not vary Variable Pay – pay that changes with performance or results (MBA Karlo, 2020)

7. Importance of Compensation & Benefits Attract and retain talented employees Motivate employees to achieve organization’s goals Used to reward employees for their hard work and dedication Reduce employee turnover and improve morale

8. Statutory Mandatory Benefits also known as mandatory benefits , are entitlements that employers are obligated by law to provide to their employees. Examples: paid annual leave parental leave worker's compensation insurance paid sick leave

9. Exceptions Field Personnel Establishments with less than ten workers (10) Kasambahay Government Employees Managers Contract-based workers Commission-based workers

10. What is Minimum Wage? the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract PURPOSE: The purpose of minimum wages is to protect workers against unduly low pay.

11. Basis for Minimum Wage Rates Normal working hours of 8 hours/day

12. Holiday Pay The employee with receive the normal daily rate even if they did not come to work during the regular holiday provided that they are present or if they filed a leave with pay during the work day before the Holiday.

13. Regular Holiday If the work is performed on a regular holiday that is also a rest day, the employee gets a total of 260%. 

14. Premium pay Employees are eligible to receive premium pay for working on their rest days or special holidays. If an employee needs to work on their rest day or special day, they receive an extra 30% of their daily salary.

15. Night shift Differential The labor laws of the Philippines make it mandatory to pay night shift differential to the workers working between 10PM to 6AM. The nightshift differential must not be less than 10% of the worker's regular salary.

16. Overtime If an employee works more than eight hours on an ordinary workday, they are entitled to an extra 25% of their average hourly rate.