COMPENSATING

PERSONNEL
Narrative Report
Mary Joy G. Moaje
Major in Business Administration

Subject: BA 210 Human Resource Management

Facilitator: Dr. Elvin Gaac PhD

 Compensation the financial and non-financial rewards that organization give
to employees in exchange for their work. It is a tool used by management for a variety
of purposes to further the existence of the company. Compensation may be adjusted
according the business needs, goals, and available resource. It can be direct and
indirect. Both of these types of compensation are financial, meaning that the
compensation takes the form of money or can be valued as money. The types of
compensation are minimum wage, commission, overtime wages, premium pay,
holiday pay, tip income, bonus pay, recognition pay, night shift differential, and
benefits.

Under the Administrative Code of 1987 on the Civil Service Commission Book
4, the Congress shall provide for the standardization of compensation of government
officials and employees including those in government-owned or controlled
corporations. It is important to had a standardization in order to have a guides in
compensating personnel. In Art. 99 of Labor Code Minimum Wage the minimum wage
rate for agricultural and non-agricultural employees and workers in each and every
region of the country shall be those prescribed by the Regional Tripartite Wages and
Productivity Boards. The Act established a new mechanism for minimum wage
determination through the creation of the National Wages and Productivity
Commission (NWPC). For me it could be very helpful among workers because
employer can’t abuse there’s employees in giving not enough compensation. The
normal hours of work should not exceed eight hours a day. Unless there is a valid
compressed work week arrangement, an employee who renders work in excess of
eight hours a day is entitled to overtime pay equivalent to the applicable wage rate
plus at least 25 percent thereof. On a rest day or special holiday, an employee is
entitled to an additional 30% of his daily basic rate, or a total of 130%. On a rest day
which is also a special holiday, an employee is entitled to an additional 50% of his
daily basic rate, or a total of 150%. On a regular holiday which is also an employee’s
rest day, an employee is entitled to an additional 30% of the regular holiday rate of
200%, or a total of 260%. Note that it is only applicable to employees covered by the
holiday-pay rule. Overtime is calculated after an additional thirty (30) minutes has
been worked beyond the regular working schedule. Overtime of less than thirty (30)
minutes shall not be considered as overtime. Except in highly meritorious cases to be
determined by OPM, an overtime shall not exceed four (4) hours a day. Mandatory
overtime may be regarded as unlawful unless it meets at least one of the five (5)
conditions provided in Article 89 of the Labor Code of the Philippines which provides
the rules about Emergency Overtime Work or the only circumstances when an
employer may require his or her employees to perform overtime labor. The contracts
of those who refuse to work overtime are prematurely terminated. Generally, there is
no legal limit on the number of hours an employer can schedule overtime work.
Article 83 of the Philippine Labor Code says: The normal working hours of an
employee shall not exceed eight hours a day while on the part of employer they
cannot refuse to pay for overtime hours actually worked. If the hours are worked,
then the employee must be paid. Again, although employers must generally pay for
the time, they can still discipline or terminate employees who violate the employer's
policy.” One of my example is in my previous job, my employer didn’t counted the
overtime once we are late, instead we need to complete first the right hours of work
then they can calculate the overtime pay.

The Labor Code requires the payment of an employee’s daily basic wage for all
non working regular holidays. There are 12 regular and 3 special non working holidays
in the Philippines. If you didn’t report for work on a regular holiday, you’ll still
receive your full salary for that day. You shouldn’t be deducted for work
that isn’t performed on a holiday. If you reported for work on a regular
holiday, you should be paid double your salary for the first eight hours
worked. If you worked for more than eight hours during a regular holiday,
you should be paid an additional 30% of your hourly rate. If you worked
during a regular holiday that also falls on your rest day (a Saturday or a
Sunday, for example), you must receive 30% of your 200% salary in
addition to 200% of your salary. If you worked for more than eight hours on
a regular holiday (which is also your rest day), you’ll get paid an additional
30% of your hourly rate. The no work, no pay rule applies when you don’t
report for work on a special non-working day, unless your employer has a
policy or collective bargaining agreement (CBA) that requires payment on
such a holiday. If you work during a special non-working day, you must
receive an additional 30% of your basic wage on the first eight hours
worked. If you worked on a special non-working day that also falls on your
rest day, you’ll get an additional 50% of your basic wage for the first eight
hours. If you worked overtime on a special non-working day (which is also
your rest day), you will receive an additional 30% of your hourly rate.
Holiday pay rules exist to protect the rights of workers to compensation
that’s due them. Employees must scrutinize their payslips and report to the
HR or Accounting Department any incorrect holiday pay computation. For
their part, employers should make sure they compute their employees’
holiday pay correctly. Bookmark this guide for the next time you need to
compute your holiday pay in the Philippines.

The Senate S. No 1820 An act providing for the protection of wages and tips
received by certain employees or known as "Wages and Tips Protection Act" pursuant
to the State's policy of protect the rights of the workers, the purpose of this act is to
protect the wages and tips of certain employees, particularly the wait staffs
employees, service employees, or service bartender, from unlawful deduction and
interference by their employees.

Under Presidential Decree No. 851, employers from the private sector in the
Philippines are required to pay their rank-and-file employees a Thirteenth 13th Month
Pay not later than December 24 every year. The 13th month pay is equivalent to one
twelfth (1/12) of an employee’s basic annual salary. It is a mandatory benefit provided
to employees pursuant to Presidential Decree No. 851 which requires employers to
grant 13th month pay to all its rank and file employees. The release of the year-end
bonus and cash gift is pursuant to Budget Circular No. 2016-4, which mandates that
the said incentives be given not earlier than November 15 of the current year.
Recognition and rewards will vary from organization to organization, and how you
appreciate employees will depend on your unique company needs. Article 86 of
Philippine Labor Code states: “Every employee shall be paid a night shift differential of
not less than ten percent (10%) of his regular wage for each hour of work performed
between ten o’clock in the evening and six o’clock in the morning.” The Employees’
Compensation Program (ECP) is a government program designed to provide a
compensation package to public and private employees or their dependents in the
event of work-related sickness, injury, or death.

The concepts of compensation are Job Description, Job Analysis, Job

Evaluation, Pay Structures, Salary Survey, and Policies and Regulations. Under Sec 7 of
RA No. 6727 (1989) Wage Rationalization Act, which provides that upon written
permission of the majority of the employees or workers concerned, all private
establishments, companies, business, and other entities with twenty five (25) or more
employees and located within one (1) kilometer radius to a commercial, savings or
rural bank shall pay the wages and other benefits of their employees through any of
said banks and within the period of payment of wages fixed by P.D No. 442 as
amended. Art. 100 of Labor Code Prohibition Against Elimination or Diminution of
Benefits. “Nothing in this book shall be construed to eliminate or in any way diminish
supplements, or other employee benefits being enjoyed at the time of promulgation
of this Code.” In Art. 101 of Labor Code Payment by Result the Secretary of the Labor
and Employment shall regulate the payment of wages by results, including pakyao,
piecework, and other none-time work in order to ensure the payment of fair and
reasonable wage rates, preferably through time and motion studies or in conclusion
with representative of workers’ and employers’ organization.

In Article 102 of Labor Code No employer shall pay the wages of an employee
by means of promissory note, vouchers, coupons, tokens, tickets, chits or any object
other than the legal tender, even when expressly requested by the employee. In
Article 103 of Labor Code Wages shall be paid at least once every two (2) weeks or
twice a month a month an intervals not exceeding sixteen 6 days .If on account of
force majeure or circumstances beyond the employer’s control, payment of wages on
or within the time herein provided cannot be made, the employer shall pay the wages
immediately after such force majeure or circumstances have ceased. No employers
shall make payment with less frequency than once a amount. In Article 104 of Labor
Code the Payment of wages be made at or near the place of undertaking ,except as
otherwise provided by such regulations as the secretary of Labor and Employment
may prescribe under conditions to ensure greater protection wages. Under Art. 105 of
Labor Code: Direct Payment of Wages, wages shall be paid directly to the workers to
whom they are due. In Art. 105 of Labor Code: Direct Payment of Wages where the
worker has died ,in which case, the employer may pay the wages of the deceased
worker to the heirs of the letter without the necessity of intestate proceedings. Under
Art.106 of Labor Code: Contractor or Subcontractor whenever an employer enters into
a contract with another person for the performance of the former's work the
employees of the latter’s subcontractor, if any, shall be paid in accordance with the
preventions of this code.