COMPESATION AND BENEFITS

• Presidential Decree No.442


  Governs all employer-employee relations
• Minimum wage in NCR

  Php610 day
• Classical Wage Theory


  Fundamental concept that labor is a commodity and we have to pay the price according to supply and demand
• Just wage theory


  The workers' cost of living should be considered first in the cost of production<|>Theory is the basis in the implementation of the minimum wage laws
• Labor Organization


  Organization affecting wage and salary administration
• Wage fund theory


  Theory holds the idea that the working capital of the nation provides a fund
• Britannica: 'Wages increase only with an increase in capital or a decrease in the number of workers.'
• Bargaining Theory


  • Theory is appealing to labour organizations, as it provides an effective reason for the existence of union

  theory of wages holds determined by the relative bargaining strength of the parties to the agreement
• Marginal productivity theory


  Company would be willing to pay a worker only what they can contribute to the company's value
• Marginal productivity theory


  • Theory claims that it makes no economic sense to pay employee if the cost exceeds the share of income that they bring in
• Labor Theory Value

  The value of economic goods derives from the amount of labor necessary to produce them
• Standard of living theory


  Wages should be based on the cost of living

  An increase to economic growth would effect to increase inn wages
• Eye inspection


  Least and reliable technique as it does not require computation
• Least Squares or Second Degree Curve


  Uses the statistical formula
• Base pay


  The cash that an employer pays for the work performed

  can be computed by hourly, daily-paid or monthly
• Wages


  Hourly rate of pay regulated by the Dept. of Labor and Employment together with the National Wages and Productivity Commission (NWPC)
• Salary


  Usually paid to managers and professionals
• Benefits


  Includes paid time off, health insurance, profit sharing, leave benefits on top of a worker's basic pay. These benefits can be provided in monetary or non-monetary form
• Pay model


  Used to devise new methods in the payment structure within the organization
• Government Sector


  • GSIS
  • Philhealth
  • hdmf
• Private Sector


  • SSS
  • Philhealth
  • hdmf
• Government Mandated Benefits


  • GSIS
  • SSS
  • Philhealth
  • hdmf
• Salary Range


  Salary grade table, based on the labor code for minimum wage earner
• Government Sector Salary


  Salary grade table
• Private Sector Salary


  Based on the labor code for minimum wage earner
• Essentials of Sound Wage and Salary Administration

  • Rational Job Analysis
  • Proper Job Evaluation
  • In Depth Knowledge about Organization and Market Factors
  • Clarity of Objectives on Purpose of Salary Administration
• Methods of Wage Payment

  • By time worked
  • By the amount of work produced
• Compensation Structure in the Philippines

  • Basic Pay
  • Overtime Pay
  • Regular Holiday Pay
  • Premium Pay
  • Special Holiday Pay
  • Night Shift Differential Pay
  • Night Differential