Compensation management

Compensation Management-HRM

1. Compensation Management
Human Resource
Management
Kamal Subedi
Boston International College
Presented By:© Kamal Subedi, 2016

2. Page 2
Concept of Compensation
Compensationreferstotheextrinsicrewardsthat
employeesreceiveinexchangefortheirwork.Itis
composedofthebasewageorsalaryandincentivesor
bonusandanybenefits.–BayersandRue
Fromtheabovedefinitionitcanbeconcludedthatthe
organizationmainlyconsistoftwotypesofcompensation
scheme:
Directcompensation
IndirectCompensation? Kamal Subedi, 2016

3. Page 3
Direct-Indirect Compensation
Moneyisincludedunderthedirectcompensation
popularlyknownaswages/grosspay.Thereare
directfinancialpaymentsintheformofthewages,
salaries,incentives,commissionandbonuses.
Benefitscomeunderindirectcompensation.Itmay
consistofinsurance(lifeanddeathinsurance),the
employer’scontributiontoretirement,payforillness
andvacation,andemployer’srequiredpaymentsfor
employmentwelfareasasocialsecurity.
Direct Compensation
Indirect Compensation? Kamal Subedi, 2016

4. Page 4
Purposes and Uses of Compensation
Totalcompensationisimportantbecauseoftheseveral
purposesitcanserveincluding.
Toattractpotentialjobapplicants:Inrelationwith
theorganizationalrecruitmentandselectionefforts
thecompensationprogramcanhelpassurethatpay
issufficienttoattracttherightpeopleatrighttimefor
therightjobs.
Toretaingoodemployee:internallyequitableand
externallycompetitivecompensationschemehelpto
retaintheemployee.
Tomotivateemployee:itactsasatoolofmotivation
toincreasetheproductivityorpotentialofthe
employees.? Kamal Subedi, 2016

5. Page 5
Purpose and use of Compensation
Toadministerpaywithinlegalrequirements:there
aremanyorganizationstomonitorthecompensation
paymentaccordingtothelawsotoavoidthe
violationofthelawthecompensationshouldbe
providedtotheemployees.
Tofacilitateorganizationalstrategicobjectives:
theorganizationalmaywanttocreateavery
rewardingandsupportiveclimate.Andtoattractthe
potentialcandidateforthejobtheproper
compensationschemecouldbetheeffectivetoolto
attainthestrategicobjectiveslikerapidgrowth,
survivalandinnovation.? Kamal Subedi, 2016

6. Page 6
Structure and components of compensation
Wagesandsalary:
wageistheremunerationpaidperiodicallytoan
employeeorworker(blue-collarworkers).
Ontheotherhandsalaryreferstotheweeklyorthe
monthlyratespaidtoclerical,administrativeand
professionalemployee(white-collaremployee)
Incentives:
itreferstoalltheplansthatprovideextrapayfor
extraperformanceinadditiontoregularsalaryand
wages.Theyactsastheextrafinancialmotivation.? Kamal Subedi, 2016

7. Page 7
Structure and components of compensation
Benefits:
Theyareusuallyknownasfringebenefitsbecause
theyareofferedbyemployertotheemployeeasa
fringe(freeofcost).Theyaresupplementstowages
receivedbyemployeeatacosttoemployer.
Payfortimenotworked(holidays,leaves,paid
vacations)
Protectionprograms(insurance,pension,or
gratuity)
Executivebenefits(telephone,securityguards,
newspapers)? Kamal Subedi, 2016

8. Page 8
Structure and components of compensation
Serviceperquisites
Org.alsoprovideanumberofservicesthat
employeesfinddesirable.Theseserviceareusually
providedbytheorganizationatnocosttothe
employeeatasignificantreductionfromwhatmight
havetobepaidwithouttheorganizationsupport.
Freeorsubsidizedhousing,flooding,workclothing,
transportationetc.
Childcarefacilities(daycare,nurseries)
Financialandlegalservices
Purchasingservices
Educational,medicinal,outplacementservices.? Kamal Subedi, 2016

9. EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
COMPENSATION
FINANCIAL
DIRECT INDIRECT
NON-FINANCIAL
THE JOB THE ENV.
Compensation of Total Compensation© Kamal Subedi, 2016

10. Page 10
Process of Compensation Management
Performed
job analysis
Conduct pay or
salary surveys
Analyze
relevant
organizational
problems
Preparation of
pay structure
Farming pay
administration
rules
Implementation
of wages and
salaries© Kamal Subedi, 2016

11. Page 11
Process of Compensation Management
PerformingjobAnalysis:jobanalysishastwo
majoroutcomes,jobdescriptionandjob
specification.Afterwhichtheratingofthejoboccurs.
Ajobevaluationistheprocessofdeterminingthe
valueofthejobrelatedtootherjob.Anditisalso
concernedwithconvertingtheworkvalueto
monetaryvalue.
Conductingpaysurveys:intheanotherstepthe
actualamounttobepaidisdeterminedwiththewage
andsalarysurveys.Theinformationiscollectedwith.
Benchmarking
Packagingsurveys
Ownsurveys? Kamal Subedi, 2016

12. Page 12
Process of Compensation Management
Analysis of organizational problems:
determinationofpayrequiresmorethanwageand
salarysurveys.Dozensodvariablecanaffectwage
structure.HRmanagermaybeinterestedinfollowing
queries.
Whatshouldbetherelationshipbetweenthepay
structureandfringebenefit?
Wouldthefirmrecruitnewemployeeafterrevised
paystructure?
Aretheprevailingratesinindustryconsistentwith
theresultofthejobevaluation?? Kamal Subedi, 2016

13. Page 13
Process of Compensation Management
PreparationofPayStructure:itisthejointoutcomeof
abovethreesteps.Forthepurposeofdeterminingpay
structurealotofdecisionsneedtobetaken.Forexample.
Weathertopayamountsequal,aboveorbelow
industrylevel?
Thenumberofwidthofpaygradesandtheextentof
overlap.
Farmingpayadministrationrules:astheratesranges
havebeendetermined,thedevelopmentofrules/policies
ofpaysystemhastobefixed.Alotofthepoliciesand
rulesrequiredtoanswer:
Atradeofbetweenseniorityandmeritbasis
Thefrequencyofpayincreases
Howtocontrolsalaryandwagecosts? Kamal Subedi, 2016

14. Page 14
Process of Compensation Management
Implementationofwagesandsalaries:finally,it
shouldbeimplementedandcontrolledbyauthorized
executives.Duetotheseniorityofpaysystem,itis
usuallyassignedtoacommitteecomposedofhigh-
rankingofficers.Thiscommitteemayrequirefrequent
adviseandhelpfromtechnicalHRstaff.? Kamal Subedi, 2016

15. Page 15
Methods of Employee Compensation
Therearevariousmethodofcompensationavailablein
HRM.Asingleorganizationcanusesingleortwoor
moremethodsatatime.
Basepluscostoflivingallowance(BCOLA)
Scalepluscostoflivingallowance(SCOLA)
Cashincentives
Bonusorvariablepay
Broadbandingmethod
Joborskillbasedpaymethod
Meritpaymethod
Otherformsofcompensations.? Kamal Subedi, 2016

16. Page 16
Base plus cost of living allowance (BCOLA)
Thismethodisbasedontwofactorsviz,baseand
allowance.Everyorganizationhastheirbasesalary
forallthetypesofjobs.Onandabovethat
employeesareprovidedwithcostoflivingallowance.
COLAIsanadjustmenttothebasesalarybya
percentagethatisassumedtomatchincreasesin
costforgoodandservicesonanationalregionalor
localleveloraccountforchangeinthemarket.? Kamal Subedi, 2016

17. Page 17
Scale plus cost of living allowance (SCOLA)
Thisisthesecondmethodofcompensationusedby
manyorganizations.Italsohastwocomponentsviz.
scalelevelforaparticularlevelofjobplustheCOLA
given.Manycompaniessetarangeofpayratesfrom
minimumtomaximum,designedforspecificpay
grades.
Onandabovethatacostofliving
adjustment/allowanceisgiventotheemployeesas
discussedinfirstmethod.? Kamal Subedi, 2016

18. Page 18
Cashincentives:thisisthethirdmethodin
compensation.Thismethodtakesoneofthetwo
methodexplainedabove.Againtheemployeeis
given,additionalcompensationtomotivateand
rewardhim/herforexceedingperformancegoalsin
theformofcashincentives.
BonusorVariablePay:itisanothermethodthatis
usedbymanyorganizationstocompensatetheir
employeeaccordingtotheircontributions.Bonusor
variablepayplanmethodisanincentivepayplan
whichawardsemployeecompensationinadditionto
theirbasicsalary.Itisgivenforachieving,individual
orgroupperformanceandproductivitygoals.? Kamal Subedi, 2016

19. Page 19
BroadBandingmethod:Broadbandingmeans
collapsingsalarygradesandrangesintojustafew
widelevelseachofwhichcontainsawiderangeof
jobsandsalarylevels.Itcreatesverticalpayrates
ranges.
JoborSkillbasedpaymethod:itisanothertypeof
compensationmethodwhichisbecomingvey
popularinrecentyears.Itmaybeduetohigh
demandforskillsexperience,andeducationtrendin
themarket.Inarealsenseitissalarydifferentiation
systemthatbasescompensationonanindividual
educationexperience,knowledge,skillsor
specializedtraning.? Kamal Subedi, 2016

20. Page 20
Meritpaymethod:itisalsoaverypopularmethod
ofcompensationusedbymajorityoforganizationsin
recentdays.Meritpayisacompensationsystem
wherebybasepayincreasearedeterminedby
individualperformance.
Otherformsofcompensation:thesetechniques
areonlysupplementaryinnaturethananestablished
method.Someexamplesare:awardprograms,
sabbaticalsteambasedpayandsoon.? Kamal Subedi, 2016

21. Page 21
Compensation and incentive for management
employees
Conceptandneeds:theexecutivesofthecompany
playsanimportantroleforlookingtheeconomic
healthofthecompany.Astheyareimportantforthe
success,growthandprofitabilityofanorganization
theyhavetobecompensatedproperly.Tomakethe
executivehappyasfaraspossible,companieshave
beengivinginrecentyearsbiggerandmorefrequent
riseinsalaries.
Theexecutivecompensationcostasizeablecost
andrisingcost.
Thepaymentcanbeinformof,medicalcare,
professionalservicesinlegalandfinancialmatters,
facilitatesforentertainingcustomersandfordining,
customerrecreationalservices.? Kamal Subedi, 2016

22. Page 22
Why organization needs separate plan for managers?
Componentsofexecutivescompensationsandincentives
Theexecutivestotalcompensationpackageconsistsoffour
packageforshorttermandlongtermincentiveperquisites.
BasicSalaries:fixedelementofpayanditdoesnot
normallyvaryinrelationtocompanyperformance.
Shorttermincentives:theyareawardedannually.
Awardincentivesreflecthierarchicalpositionrelationship
inmostcaseswithhigheropportunitiesrelativetohigher
positionandviceversa.
Longtermincentives;thepaymentsisbasedonthe
performancefortheperiodbeyondoneyear
Benefits/perquisites:itisnotbasedonthequantity
benefits,thisconsistsofcompanycars,clubmembership,
housingetc.? Kamal Subedi, 2016

23. Page 23
Issues in management compensation
Executivescompensationhasassumedimportanceinrecent
years.Theyareincreasingeveryearsandhasbecome
publiccomment.Theissuecoversthreemajoraspects.
Whatandhowmucharetheexecutivespaid?
Whyaretheypaidheavyremuneration?
Whatissuesareinvolvedinpaymentofhigher
remuneration?
Thereasonsare:
First,themanagementcompensationdifferscountryto
countryandtheyarekeptconfidential.
Second,theyarepaidforthetalents,andtosatisfytheir
GREEDhonestbusinesspracticesmustbeadopted.
Third,highersalariesandbenefitdonotguarantee
motivation? Kamal Subedi, 2016

24. Page 24
Job Evaluation System (Process)
Jobevaluationistheprocessofdeterminingtherelative
worthodvariousjobswithintheorganization,sothat
differentwagesmaybepaidtojobsofdifferentworth.
Itisthequantitativemeasurementofrelativejobworth
Itspurposeistoestablishconsistentwagerate
differentialsbyobjectivemeans.
Itmeasuresthedifferencesbetweenjobrequirements.
Itdoesnotsetthepriceofthejob;itmerelyfixesits
relativeworth.
Itratesthejob,notthequalitiesoftheindividual
employeesonthejob.
Jobevaluationprocessignoresindividualabilitiesor
theperformanceofthejobholder.? Kamal Subedi, 2016

25. Page 25
Job Evaluation System (Process)
Evaluating
jobs
Developing
plan
Selecting
Method
Preliminary
planning
Job
Analysis
Job
Description
•Formal or informal?
•Make or buy?
•Who?
•Ranking
•Classification
•Factor comparison
•point? Kamal Subedi, 2016

26. Page 26
Job Evaluation System (Process)
Preliminaryplanning:itisthefirstissueswhetherto
conductjobevaluationformallyorinformally.The
formalevaluationisrelativelysystematicapplication
ofstandardsanddecisionrulestorankorratejobs.It
islongerandcostlyprocess.
Selectingthejobevaluationplan:fourcommonjob
evaluationmethodsareavailableviz.,marketing,
classification,factorcomparison,andpoint.Thepoint
methodisbasicallythemostwidelyusedmethod.
Developingtheplan:inthisthirdstep,ajob
hierarchyisdevelopedbycomparingthecontentof
variousjobsagainstthespecifiedstandardsusing
predeterminedprocedures.? Kamal Subedi, 2016

27. Page 27
Job Evaluation System (Process)
Evaluatingjobs:jobcannotbeadequatelyevaluated
withoutaccurateup-to-dateinformationaboutjobdutiesand
responsibilities.Veryoftenmembersofthejobevaluation
committeealsoobservethejobandinterview.
Jobholdersandsupervisorstoobtainadditional
informationfortheevaluation.
Itispreferableforevaluationstobedone
independentlybytwoormoreevaluators.
wheredisagreementsexists,thereasonshouldbe
exploredandmoreinformationaboutjobsshouldbe
gatheredifnecessary.
Differencesshouldberesolvedthroughdiscussion.
Theaboveprocesshelpsinvalidatingthejob
hierarchy.? Kamal Subedi, 2016

28. Page 28
Job Evaluation Methods
Therearetwobasictypesandfourmethodsofjob
evaluation.
Non-analyticalmethods
Rankingmethod
Jobclassificationorgradingmethod
AnalyticalMethod
Point(rating)method
Factorcomparisonmethod
Reference:? Kamal Subedi, 2016

29. Page 29
Non Analytical Methods
RankingMethods:Therankingmethodisthe
simplestformofjobevaluation.Inthismethod,each
jobasawholeiscomparedwithotherandthis
comparisonofjobsgoesonuntilallthejobshave
beenevaluatedandranked.Alljobsarerankedinthe
orderoftheirimportancefromthesimplesttothe
hardestorfromthehighesttothelowest.
Theimportanceoforderofjobisjudgedintermsof
duties,responsibilitiesanddemandsonthejob
holder.Thejobsarerankedaccordingto“thewhole
job”ratherthananumberofcompensablefactors.? Kamal Subedi, 2016

30. Page 30
Ranking Method
TheapplicationoftheRankingMethodinvolvesthe
followingprocedure:
Analyzeanddescribejobs,bringingoutthoseaspectswhich
aretobeusedforpurposeofjobcomparison.
Identifybench-markjobs(10to20jobs,whichincludeall
majordepartmentsandfunctions).
Rankalljobsintheorganizationaroundthebench-mark
jobsuntilalljobsareplacedintheirrankorderof
importance.
Finally,dividealltherankedjobsintoappropriategroupsor
classificationsbyconsideringthecommonfeaturesofjobs
suchassimilarduties,skillsortrainingrequirements.Allthe
jobswithinaparticulargrouporclassificationreceivethe
samewageorrangeofrates.? Kamal Subedi, 2016

31. Page 31
Ranking Methods
Merits:
Rankingmethodhasthefollowingmerits:
1.Itisthesimplestmethod.
2.Itisquiteeconomicaltoputitintoeffect.
3.Itislesstimeconsumingandinvolveslittlepaperwork.
Demerits:
Themethodsuffersfromthefollowingdemerits:
1.Themaindemeritoftherankingmethodisthatthereareno
definitestandardsofjudgmentandalsothereisnowayof
measuringthedifferencesbetweenjobs.
2.Itsuffersfromitssheerunmanageabilitywhentherearealarge
numberofjobs.? Kamal Subedi, 2016

32. Page 32
Job Classification or Grading Method
Gradingmethodisalsoknownas‘classificationmethod’.This
methodofjobevaluationwasmadepopularbytheU.S.Civil
ServiceCommission.Underthismethod,jobgradesorclassesare
establishedbyanauthorizedbodyorcommitteeappointedforthis
purpose.
Ajobgradeisdefinedasagroupofdifferentjobsofsimilardifficulty
orrequiringsimilarskillstoperformthem.Jobgradesare
determinedonthebasisofinformationderivedfromjobanalysis.
Thegradesorclassesarecreatedbyidentifyingsomecommon
denominatorsuchasskills,knowledgeandresponsibilities.
Oncethegradesareestablished,eachjobisthenplacedintoits
appropriategradeorclassdependingonhowwellitscharacteristics
fitinagrade.Inthisway,aseriesofjobgradesiscreated.Then,
differentwage/salaryrateisfixedforeachgrade.? Kamal Subedi, 2016

33. Page 33
Job Classification or Grading Method
Merits:
Themainmeritsofgradingmethodofjobevaluationare:
1.Thismethodiseasytounderstandandsimpletooperate.
2.Itiseconomicaland,therefore,suitableforsmallorganizations.
3.Thegroupingofjobsintoclassificationsmakespay
determinationproblemseasytoadminister.
4.ThismethodisusefulforGovernmentjobs.
Demerits:
Thedemeritsofthismethodinclude:
1.Themethodsuffersfrompersonalbiasofthecommittee
members.
2.Itcannotdealwithcomplexjobswhichwillnotfitneatlyintoone
grade.
3.Thismethodisrarelyusedinanindustry.? Kamal Subedi, 2016

34. Page 34
Analytical Methods
PointsRating:
Thisisthemostwidelyusedmethodofjob
evaluation.Underthismethod,jobsarebrokedown
basedonvariousidentifiablefactorssuchasskill,
effort,training,knowledge,hazards,responsibility,
etc.Thereafter,pointsareallocatedtoeachofthese
factors.
Weightsaregiventofactorsdependingontheir
importancetoperformthejob.Pointssoallocatedto
variousfactorsofajobarethensummed.Then,the
jobswithsimilartotalofpointsareplacedinsimilar
paygrades.Thesumofpointsgivesanindexofthe
relativesignificanceofthejobsthatarerated.? Kamal Subedi, 2016

35. Page 35
Points Rating
Merits:
Themethodhasthefollowingmerits:
1.Itisthemostcomprehensiveandaccuratemethodof
jobevaluation.
2.Prejudiceandhumanjudgmentareminimized,i.e.
thesystemcannotbeeasilymanipulated.
3.Beingthesystematicmethod,workersofthe
organizationfavorthismethod.
4.Thescalesdevelopedinthismethodcanbeusedfor
longtime.
5.Jobscanbeeasilyplacedindistinctcategories.? Kamal Subedi, 2016

36. Page 36
Points Rating
Demerits:
Thedrawbacksofthemethodare:
1.Itisbothtime-consumingandexpensivemethod.
2.Itisdifficulttounderstandforanaverageworker.
3.Alotofclericalworkisinvolvedinrecordingrating
scales.
4.Itisnotsuitableformanagerialjobswhereinthework
contentisnotmeasurableinquantitativeterms? Kamal Subedi, 2016

37. Page 37
Factor Comparison Method
Thismethodisacombinationofbothrankingandpointmethods
inthesensethatitratesjobsbycomparingthemandmakes
analysisbybreakingjobsintocompensablefactors.Thissystem
isusuallyusedtoevaluatewhitecollar,professionaland
managerialpositions.
Themechanismforevaluatingjobsunderthismethod
involvesthefollowingsteps:
Firstofall,thekeyorbenchmarkjobsareselectedas
standards.Thekeyjobsselectedshouldhavestandards
contents,wellacceptedpayratesinthecommunity,andshould
consistofarepresentativecross-sectionofalljobsthatare
beingevaluated-fromthelowesttothehighestpaidjob,fromthe
mostimportanttotheleastimportant—andcoverthefullrange
ofrequirementsofeachfactor,asagreeduponbyaCommittee
representingworkersandmanagement.? Kamal Subedi, 2016

38. Page 38
Contd.
Thefactorscommontoalljobsareidentified,
selectedanddefinedprecisely.Thecommonfactors
toalljobsareusuallyfive,viz.,mentalrequirements,
physicalrequirements,skillrequirements,working
conditionsandresponsibility.
Oncethekeyjobsareidentifiedandalsothe
commonfactorsarechosen,thekeyjobsare,then,
rankedintermsoftheselectedcommonfactors.
Thenextstepistodetermineafairandequitable
baserate(usuallyexpressedonanhourlybasis)
and,then,allocatethisbaserateamongthefive
commonfactorsasmentionedearlier.Followingisa
specimenofbaserateanditsallocationscheme:? Kamal Subedi, 2016

39. Page 39
Factor Comparison Method
Merits:
Thismethodenjoysthefollowingmerits:
Itismoreobjectivemethodofjobevaluation.
Themethodisflexibleasthereisnoupperlimiton
theratingofafactor.
Itisfairlyeasymethodtoexplaintoemployees.
Theuseoflimitednumberoffactors(usuallyfive)
ensureslesschancesofoverlappingandover-
weightingoffactors.
Itfacilitatesdeterminingtherelativeworthofdifferent
jobs.? Kamal Subedi, 2016

40. Page 40
Factor Comparison Method
Demerits:
Themethod,however,suffersfromthefollowing
drawbacks:
Itisexpensiveandtime-consumingmethod.
Usingthesamefivefactorsforevaluatingjobsmay
notalwaysbeappropriatebecausejobsdifferacross
andwithinorganizations.
Itisdifficulttounderstandandoperate.? Kamal Subedi, 2016

41. Page 41
Pay for Performance/Incentive Pay
Incentivepay,alsoknownas"payforperformance"is
generallygivenforspecificperformanceresults
ratherthansimplyfortimeworked.Whileincentives
arenottheanswertoallpersonnelchallenges,they
candomuchtoincreaseworkerperformance.
Thecomponentsofthepaybasedsystemare:
Meritpaysystems:theyaffectarelativelysmall
percentageofanindividual’stotalsalary.Becauseit
isgenerallyusedonlytomoveanindividual’s
compensationwithinraterange.
Incentivesystems:initperformanceisoften
measuredbystandardsofproductivityanddirect
indexesofindividual,groupororganizations.? Kamal Subedi, 2016

42. Page 42
Challenge of PBP
Thechallengesassociatedwiththeperformance
basedpayareasfollows:
Whataretheobstaclestothedesignofeffective
performancebasedpaysystem?Howcantheybe
removed?
Whatarethelimitsonanorganization’sdecisionto
useaperformancebasedpayplan.Whichplanis
thebest?
Cancompaniesreallyaffordtorewardpeoplefor
goodperformance?
Shouldcompaniesuseperformancebasedpay,
especiallyincentivepay?? Kamal Subedi, 2016

43. Page 43
Incentive systems (A tool of PBP)
Incentivepayisanyformalandannouncedprogram
underwhichtheincomeofanindividual,asmall
group,aplantworkforceoralltheemployeesifa
firmarepartiallyofwhollyrelatedtosomemeasures
ofproductivityoutput.
Developingincentivesplan(system)
Establishingtheminimumjobrates
Establishperformancestandards
Determineincentiverates
Establishprocessforchangingstandards
Tryouttheincentiveplanonanexperimentbasis? Kamal Subedi, 2016

44. Page 44
Types of incentives pay plans
Individualincentivepayplans
Thepieceworkplan
Thestandardhourworkplan
Salesincentivesplan
Managerialincentiveplans
Othertypesofplans
Grouplevelincentivepayplans
Productionincentiveprogram
Departmentheadincentiveprogram
Professionalincentiveprogram? Kamal Subedi, 2016

45. Page 45
Types of incentives pay plans
Organizationallevelincentiveplans
Profitsharingplans
TheScanlonplan
Gainsharingplans
Employeestockownershipplan? Kamal Subedi, 2016

46. Page 46
Employee benefits and services
Indirectnoncashcompensationpaidtoanemployee
bytheemployingorganizationiscalledbenefits.
Somebenefitsaremandatorybylawsuchassocial,
securityetc.
Thedifferenttypesofbenefits/services
Economicalfinancialbenefits
Recreationalsocialservices
Professionalservices
Familywelfareservices? Kamal Subedi, 2016

47. Page 47
Issues of Compensation in Nepal
Thedifferentissuesofthecompensationpayplanin
Nepalarelistedbelow:
Theissueoftheminimumwages
Theissueofcomparableworth
Theissueofpaysecrecy
Theissueofinflationandsalarycompression
Theissueofcostoflivingdifferentials
Theissueofpayreviews
Theissueofemployeeparticipation? Kamal Subedi, 2016

48. Page 48
Government regulations of compensation in Nepal
Thelegalenvironmentandpaysystemisnot
satisfactoryinthecontextofNepal.
Governmentlegislation
Differentacts
Laboract2048andlaborregulation
Bonusact
Publicserviceregulation
Companyact1996
InterimconstitutionofNepal,2063
ConstitutionofNepal2072? Kamal Subedi, 2016

49. Page 49
Contd.
Laborlaws
Equalpay/nodiscrimination
Minimumwages
Providentfund
Overtimepayment
Otherprovisions
BonusAct? Kamal Subedi, 2016

50. Page 50
Contd.
Paysystemgovernance(institutionalframework)
Departmentoflabor(DOL)
Wageboards
Paycommissioncommittee
Tribunals
Laborcourt? Kamal Subedi, 2016

51. Page 51
Contd..
PaypracticesinNepal
Governmentalorganizations
Privatesectororganizations
Privatebanksandfinancialinstitutions
Nongovernmentalorganizations? Kamal Subedi, 2016

52. Page 52
Provisionrelatingtominimumwages
Socialwelfareincentiveprovisionsandretirement
benefitsinNepaleseacts
Civilserviceacts2049
Employeeprovidentfund
Festivalexpensesandotherfacilities
Pension
Specialeconomicfacility
leaves? Kamal Subedi, 2016

53. Page 53
Laboract1992
Provisionrelatingtohealthandsafety
Welfareprovisions
Compensations
Welfarefunds
Leaves
Providentfundandmedicalexpenses? Kamal Subedi, 2016

54. Page 54
Socialsecurity
Purpose
Coverage
Insuranceandcontributions? Kamal Subedi, 2016

55. Thank You ? Kamal Subedi, 2016