CRIDIBILITY

COMPENSATION SYSTEM
 Definition Compensation

Compensation is all income in the form

of money or goods in a manner direct
or No received immediately employee
as reward on services provided to A
company.
Compensation System

01 Time System

02 Results System (output)

03 Wholesale System
 How to count distribution wages principal , wages
overtime , severance pay and pension funds
 Payment Wages tree Example: If level the hourly wage is
Payment tree wages counted with IDR 10,000 and the number of hours
multiply number of working hours worked a employee is 160 hours per
with level hourly wages . month , then payment tree wages
For employee the are :
Formula : tree Wages = 160 x IDR 10,000 =
Wages principal = Number of Hours IDR 1,600,000
Worked x Hourly Wage Rate.
 Payment Wages Overtime
Wages overtime given to
working employees _
exceeding normal working
hours or outside working
hours _ _ _ determined .
Usually , wages overtime
counted as 1.5 times from
level normal hourly wages .
Formula :
Wages Overtime = Total Overtime
Hours x 1.5 x Normal Hourly Rate .
Example : If level normal hourly wages
are Rp. 10,000 and employees Work
overtime for 3 hours, then payment
wages overtime For employee the are :
Wages Overtime = 3 x 1.5 x IDR 10,000
= IDR 45,000
 Payment severance pay

severance pay is payment given _ to fired employees _ or

discontinued contract by the company . Big mandatory
severance pay given usually arranged in agreement Work or
regulation company .

Formula :
Severance = Amount Year Work x Salary
Principal x Percentage severance pay
Example : If a employee fired after Work for 5
years and percentage severance pay arranged
by the company is 1 month wages For every
year work and salary tree employee the is IDR
3,000,000, then payment mandatory
severance pay accepted by employees the are :

severance pay = 5 x IDR 3,000,000 x 1 = IDR

15,000,000
 Pension
Fund Payments Pension fund is payment given _ to existing
employees _ entering retirement . _ The size of the pension fund that
must be given usually arranged in agreement Work or regulation
company .

Formula :
Pension Fund = Amount Year Work x Salary
Principal x Percentage of Pension Funds .
Example : If a employee pension. after Work for 20 years and the
percentage of company - regulated pension funds is 2% of wages
principal and salary tree employee the is IDR 5,000,000, then
mandatory pension payments _ _ accepted by employees the are :

Pension Fund = 20 x IDR 5,000,000 x 2% = IDR 2,000,000

 Thanks!
Do you have any questions?

Harry Setiawan
Wulan Suri Rahayu
Zuriyani

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