Professional Documents
Culture Documents
EMPLOYEE
Compensation
Compensation
Benefits
andBenefits
and
Lesson Objectives:
Members:
Amancio, Katrina Jewel
Booc, Karla
Ursal, Joshua
Yayon, Keesha
Compensation of
Employees (CE)
- Is a statistical term used in national accounts,
Balance of Payments statistics and sometimes
in corporate accounts as well. It refers basically
to the total gross (pre-tax) wages paid by
employers to employees for work done in an
accounting period, such as a quarter or a year
3
Compensation of
Employees (CE)
- is defined as "the total remuneration, in cash
or in kind, payable by an enterprise to an
employee in return for work done by the latter
during the accounting period”
4
Compensation of
Employees
- employee becomes entitled to receive from an
employer in respect of work done, during the relevant
accounting period - whether paid in advance,
simultaneously, or in arrears of the work itself.
5
Compensation of
Employees
“
earning hourly wages will be paid in the week that follows the
hours worked.
7
8
9
Etymology
10
Salary
A salary is a form of periodic payment from an employer
to an employee, which may be specified in an employment
contract. It is contrasted with piece wages, where each job,
hour or other unit is paid separately, rather than on a periodic
basis.
11
The Roman word salarium
Similarly, the Roman word salarium linked
employment, salt and soldiers, but the exact link is unclear. The
least common theory is that the word soldier itself comes from
the Latin sal dare (to give salt).
12
Payment during the
Commercial Revolution
Even many of the jobs initially created by the
Commercial Revolution in the years from 1520 to 1650 and later
during Industrialization in the 1700s and 1800s would not have
been salaried, but, to the extent they were paid as employees,
probably paid an hourly or daily wage or paid per unit produced
(also called piece work).
13
Share in earnings as
payment
In corporations of this time, such as the several East India
Companies, many managers would have been remunerated as owner
shareholders.
14
The Second Industrial Revolution
and salaried payment.
From 1870 to 1930, the Second Industrial Revolution
gave rise to the modern business corporation powered by
railroads, electricity and the telegraph and telephone.
This era saw the widespread emergence of a class of
salaried executives and administrators who served the new, large-
scale enterprises being created.
15
Salaried employment in the 20th century
In the 20th century, the rise of the service economy made
salaried employment even more common in developed countries,
where the relative share of industrial production jobs declined, and
the share of executive, administrative, computer, marketing, and
creative jobs--all of which tended to be salaried--increased.
16
Salary and other forms of payment today
17
BENEFITS
19
Vacation Leave
Most employee benefit packages with Pay
include vacation time. These days off are
usually paid, though some employers may
offer unpaid vacation time as well.
20
Sick Leave
Employees may receive paid or unpaid with Pay
sick days as part of their employee benefit
package. The amount of sick days an
employee receives varies depending on
company policy and seniority.
21
Maternity
Leave
A female member who has paid
at least three (3) monthly contributions in the
12-month period immediately preceding the
semester of childbirth or miscarriage shall be
paid a daily maternity benefit of 100% of her
average daily salary credit for 60 days or 78
days in case of caesarian delivery.
22
Maternity
The maternity leave shall be extended Leave
without pay on account of illness medically
certified to arise out of the pregnancy, delivery,
abortion or miscarriage, which renders the woman
unfit for work, unless she has earned unused leave
credits from which such extended leave may be
charged.
The maternity leave shall be paid by the
employer only for the first four (4) deliveries by
a woman-employee.
23
Paternity
An employee will be entitled to leave
paternity leave if he:
1. is or expects to have responsibility for
the child's upbringing;
2. is the biological father or alternatively
the partner of the biological mother; or
3. has legally adopted the child or is the
partner of the person who has legally
adopted the child.
24
Paternity
leave
To qualify as a "partner" the employee must live in an
enduring family relationship. The employee must supply a signed
declaration that the conditions of entitlement and that the purpose of
the leave is to care for the child or to support the child's mother (or
adopter). The employee has to have at least 26 weeks' continuous
service at the 15th week before the EWC or the week of being
matched for adoption. The maximum duration is two weeks and
must be taken within 56 days of the birth or adoption placement.
25
Paternity
leave
Employees must give notice to the line manager/HR
officer of their intention to take paternity leave and of:
1. the EWC/the date on which the child is expected to be
placed with the adopter;
2. the length of paternity leave they intend to take (one or
two weeks); and
3. the date on which they intend to start their paternity
leave.
26
Retirement Plans
Typically, this means the employer will match the amount of money an
employee contributes to her 401k up to a certain amount. Some employers
may offer a 401k savings account but without employer contributions.
27
Health Insurance
is insurance that pays for medical expenses. It is
sometimes used more broadly to include insurance covering
disability or long-term nursing or custodial care needs. It may
be provided through a government sponsored social insurance
program, or from private insurance companies.
It may be purchased on a group basis (e.g., by a firm to
cover its employees) or purchased by individual consumers. In
each case, the covered groups or individuals pay premiums or
taxes to help protect themselves from high or unexpected
healthcare expenses.
28
Health Spending Accounts
or flexible spending account may be offered by the
employer to help offset the cost of medical care not covered by
health insurance. Qualifying expenses usually include co-
payments for doctor's visits, prescription costs or over-the-
counter medication.
These programs may be a reimbursement model, where
employees submit qualifying receipts for reimbursement, or
the employee may receive a debit card that can only be used
for medical expenses
29
Company’s Discounts
As part of the employee's benefit package, a company may offer
discounts for in-house products or services. For example, retail
companies often offer an employee discount for merchandise sold by
the company. Other companies may also offer discounts for products
and services offered by a network of outside companies.
30
13th-month Pay
All employers covered by Presidential Decree
No. 851, hereinafter referred to as the "Decree", shall
pay to all their employees receiving a basic salary of
not more than P1,000 a month a thirteenth-month pay
not later than December 24 of every year.
31
Thank You...
32