HRM Flashcards
a collection of practices and procedures used for planning and distributing company-wide compensation programs for employees. These practices include employees at all levels and are usually handled by the company’s accounting department
a process by which wage and salary levels and structures are determined in organizational settings
Wage and Salary Administration
is a direct compensation received in return for direct labor of blue-collar or skilled workers. The payment for labor services rendered is usually expressed and refers to the hourly rate or daily rate
Wages
paid to white-collar job; paid at specified intervals; paid to employees whose contribution cannot be measured (clerical, administrative, and professional employees)
Salary
What are the examples of company’s way of compensation for their employees
15/30 payment
ATM, PAYCHECK which are governed by law
What is the meaning of ACA
Alternative Courses of Action
also known as “pay”
refers to all forms of financial returns and tangible benefits that employees receive in exchange for their time, talents, efforts, performance, and results
under Philippine Law, wages are renumerations or earnings for services rendered. Employers and employees may agree on the rate but should not fall below the minimum wages set by the “Regional Tripartite Wages and Productivity Board” (RTWPB) which has jurisdiction over the place of work
Compensation
What are the nature of wage and salary administration
the basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure
the wage and salary administration is concerned with the financial aspect of needs, motivational, and rewards
to minimize the chances of favoritism
employee should be paid according to the requirement of their job: highly skilled job are paid more compensation than low skilled job
What are the characteristics of wage and salary administration
- Payment of wages is in accordance with the tends of the contract between the employer and the worker
- The wages are determined on the basis of the time-rate system or piece-rate system
- Wages may be paid weekly, fortnightly, hourly or on a monthly basis
- Wages is the reward paid to the workers for the services rendered by them
- Wages create utility
are the additional non-cash items or services that nonetheless have financial value and therefore are sometimes referred to as indirect pay
Benefits
Examples of benefits
• retirement plan
• health insurance
• subsidized meals
• company housing/paying for relocation
• discounts against goods and services provided by the company may also apply
What are the mandated benefits?
• SSS
• PAGIBIG FUND
• PhilHealth
• 13th month Pay
an act granting paternity leave of 7days with full pay to all married male employees in the private and public sectors for the first 4 deliveries of the legitimate spouse with whom he is cohabiting
RA. 8187
an act of increasing the maternity leave period to 105days for female workers with an option to extend for an additional 30 days without pay, and granting an additional 15 days for solo mothers
R.A 11210
the employee must have been working for at least a year to be entitled to a special solo-parent leave, which allows him to 7 working days of leave in a year
R.A 8972
An act amending article 287 of presidential decree no. 442, as amended, otherwise known as The Labor Code of the Philippines, by providing for retirement pay to qualified private sector employees in the absence of any retirement plan in the establishment
Retirement and Pension (RA 7641 & ART 287, LCP
granted by the management on its generosity: a unilateral decision. (ex. Educational Loan)
Voluntary Benefits
worked out thru collective bargaining (ex. Faculty Associations, Unions)
Negotiated benefits