compensation mngt shivu

8/4/2019 Compensation Mngt Shivu

1/33

COMPENSATION MANAGEMENT

&BENEFITS


2/33

Company Logowww.themegallery.com

Contents

Intro to Compensation

banking sector: union bank of India

KPO sector: RBS

Its compensation mngt

Its compensation mngt


3/33

INTRODUCTION

Compensation is payment

to an employee in return

for their contributionto the organization.

The most common forms ofcompensation are wages, salariesand tips.


4/33


5/33

BENEFITS:

Benefits are forms of value,other than payment, that areprovided to the employee inreturn for their contribution to

the organization

For e.g: retirement plans,

health life insurance, lifeinsurance , incentives,giftvouchers, vacation, employeestock ownership plans etc..


6/33

Components:

www.themegallery.com

Basic wages/Salaries1

Dearness allowance2

Bonus3

Fringe benefits4

Reimbursement/ allowances etc...

5

St d f C ti d


7/33

Company Logowww.themegallery.com

Study of Compensation andbenefits on:

BANK SECTOR

UNION BANKOF INDIA

Sectors &companies

KPO SECTOR

ROYAL BANKOF SCOTLAND


8/33

Union Bank Of India

(banking sector)


9/33

UNION BANK OF INDIA:

Union Bank Of India was Inaugurated byfather of the Nation that is MAHATMAGANDHI at the onset of 20th century.

Union Bank of India has traversed thelong road of successful Banking of 90years.

Union Bank has ensured completecustomer delight, living up to its imageof, GOOD PEOPLE TO BANK WITH.


10/33

FACTS AND FIGURES:

Union Bank's unique family of about26,000 qualified / skilled employees.

Union Bank is a Public Sector Unit with

55.43% Share Capital held by theGovernment of India.

The Bank came out with its Initial Public

Offer (IPO) in August 20, 2002 andFollow on Public Offer (FPO) in February2006.
http://www.google.com/imgres?imgurl=http://www.raff-holding.de/upload/visuals/vision.jpg&imgrefurl=http://www.raff-holding.de/en/vision/&usg=__YL1td_Fk_YX7Lj5pjKGz_cRtXyk=&h=290&w=715&sz=164&hl=en&start=16&sig2=tT7ainU-76yqs_bvx4WjDw&zoom=1&tbnid=X7OdCs_OSuJGlM:&tbnh=57&tbnw=140&ei=dQtSTsy4HsrXiAKl9uB_&prev=/search?q=VISION&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1


11/33

VISION:

TO BECOME THE BANK OF FIRST CHOICE IN OUR

CHOSEN AREA BY BUILDING BENEFICIAL AND

LASTING RELATIONSHIP WITH CUSTOMERS

THROUGH A PROCESS OF CONTINUOUS

IMPROVEMENT.
http://www.google.com/imgres?imgurl=http://www.raff-holding.de/upload/visuals/vision.jpg&imgrefurl=http://www.raff-holding.de/en/vision/&usg=__YL1td_Fk_YX7Lj5pjKGz_cRtXyk=&h=290&w=715&sz=164&hl=en&start=16&sig2=tT7ainU-76yqs_bvx4WjDw&zoom=1&tbnid=X7OdCs_OSuJGlM:&tbnh=57&tbnw=140&ei=dQtSTsy4HsrXiAKl9uB_&prev=/search?q=VISION&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1


12/33

SCALE BASED PAY of Bank :

SCALE SALARY RANGE

FROM

UPTO..

JMGS-I Rs.14, 500/- Rs.31, 500/-@

MMGS-II Rs.19, 400 Rs.34, 200/-@

MMGS-III - Rs.25, 700/- Rs.35, 100/-@

SMGS-IV - Rs.30, 600/ Rs.36, 200/-

SMGS-V - Rs.36, 200/- Rs.40, 400/-

TEG-VI Rs.42,000/ Rs.46,800/-

TEG-VI Rs.46,800/ Rs.52,000/-


13/33

Salary Components of Bank

Basic Salary, Dearness Allowance (DA),

House Rent Allowance (HRA),

City Compensatory Allowance(CCA).

NO HRA for those officers who areresiding in banks accommodation

15 % HRA If officer have own houseand not availing banks accommodation.


14/33

DEARNESS ALLOWANCE to Bank POFor every 4 points rise/fall in index,Dearness Allowance at 0.15% per slab.

CITY COMPENSATARY ALLOWANCE

CCA rates are as under:

Places in Area I - 4% of Basic Pay, Max.Rs.540/-p.m.

Places with population of more than 5 lacs -3% of Basic Pay,

Max. Rs.375/-p.m.


15/33

HOUSE RENT ALLOWANCE

We have retained the existing rate of HRAas under:

Major A class cities - 8.5%

Other places in Area I - 7.5%Other places - 6.5%

MEDICAL AID

the medical aid has been enhanced as;Scale I to III Rs. 5100/- p.a.

Scale IV & above - Rs. 6320/- p.a.


16/33

Serving Employee :

Inquiry Officers-A minimum of Rs.1000/-

and a maximum Of Rs.2000/-

Presenting Officers-A minimum of Rs.500 and a Maximum of Rs. 1,000 perinquiry.


17/33

SALARY STRUCTURE:

Salary Major A class cities :Metro Cities Other places in AreaI(State Capitals etc)

Other places(District level and Rural

Places)Basic Salary Rs.14500.00 Rs.14500.00 Rs.14500.00

Dearness

Allowance (54%)

Rs.7830.00 Rs.7830.00 Rs.7830.00

CCA(4% max

Rs.540=)

Rs. 540.00 Rs.375.00 nil

HRA (Major A

class cities -

8.5%, Other

places in Area I -

7.5%, Other

places - 6.5%)

Rs.1232.50 Rs.1087.50 Rs.942.50

Total Rs.24,102.50 Rs. 23,792.50 Rs.23,272.50

cities : CatA l Centers


18/33

BANK PERK AND FACILITIES TO PO: :cities :Metro Cities CatACenters(State

Capitals etc)placesCategory BCenters

Centers

Basic Salary

Rs.7,200.00 Rs.5,300.00 Rs.3,800.00 Rs.2,800.00

Leased HouseRent Rs.3,000.00 Rs.3,000.00 Rs.2,700.00 Rs.2,300.00

TravellingAllowance Rs. 250.00 Rs. 250.00 Rs. 250.00 Rs. 250.00

News Paper Rs.600.00 Rs.600.00 Rs.600.00 Rs.600.00

Cleaning

Materials Rs.300.00 Rs.300.00 Rs.300.00 Rs.300.00

BusinessDevelopment

Expenses Rs.450.00 Rs.450.00 Rs.450.00 Rs.450.00

Medical Aid Rs.11,800.00 Rs. 9,900.00 Rs.9,400.00 Rs.6,700.00


19/33

OTHER ROLES OF HR

Allowances:

Leaves:

Welfare schemes:

Pension:


20/33

ALLOWANCES

Travelling and halting

Officiating allowances - equal to 6% office pay

Canteen subsidies 100/- Per month,

Petrol allowance- Fuel:- 2 wheeler- 15 liter of petrol4 wheeler 25 liter of petrol

Closing allowance - Rs 250/-

Deputation allowance - @ rate of 7.75% of paywith maximum of rs.2300/-

Medical:- 75% of total expense to fmly100% to employee


21/33

Leaves (holidays)

Casual leave

Privilege leave

Sick leave

Special sick leave

Maternity leave.

Extra leaves (others)


22/33

Kind of leave EntitlementCasual leave 12 working days in a

yearPrivilege leave One day for every 11

days of service on duty.

Sick leave

30 days for each

completed year of

service subject to a

maximum of 18 months

during the entire

service.special sick leave Max. 3 months

Maternity leaveMax for 12 months

during the entire periodof service.

Special casual leave for

blood donation 1 dayFor physically

handicapped employeesMax. up to 15 days in a

yearFor participating in

Max.30 days in a year.

LEAVES


23/33

Welfare schemes:

A. Reimbursement of expenses incurred forMedical check up by the eligible employees /spouse.

B.)Assistance to legal heirs of employees who diein harness.

C.)Reimbursement ofDental Surgery expensesD.)

D.)Holiday homes: (entertainment)


24/33

Royal Bank Of Scotland(KPO sector)


25/33

Introduction:

In 300 years, The Royal Bank of ScotlandGroup has grown to become one of thelargest financial services groups in theworld.

In 2007, it expanded across the globethrough the purchase of several parts ofthe Dutch bank, ABN AMRO, includingtheir businesses in India.


26/33

The Group serves a variety of medium tolarge enterprises, including multi-nationalcorporations (MNC) and financialinstitutions.

All the international transactions thatare made in U.S , scotland andnetherland are handled (by being middlefinancial operator ) by (RBS) KPO inINDIA.


27/33

Salary components of RBS:

BASE:

Basic pay.

Statutory bonus.- as per payment of bonus act.

RETIRALS:

PF - 12% of basic pay.

RBS FLEXIBLE ELEMENTS:

HRA- upto 50% of basic

Meal vouchers

Travel and recreation.

Medical


28/33

Club membership

Telephone reimbursement.(summation of above is total fix pay)

INSURANCE PREMIUM:

Life insurance premium Accident insurance premium Mediclaim for hospitalization.

GRATUITY

One months basic salary per year til service completion

Retirment age is 60


29/33

COMPENSATION PACKAGE

CTC (Cost to the Company) consists ofthree major following components:

Basic: Basic rate determine as 40% of

CTC amount.

Retirement benefit: 12% of Basic rate

(PF employers contribution )

Flexible benefit pay.


30/33


31/33

Summation of :fixed pay +gratuity+ insurance+ fBP

=

ANNUAL GROSSREMUNERATION OF AN

EMPLOYEE.


32/33

Leave:

Holiday year runs from 1

st

jan to 31st

december.

Holidays are agreed in advance with themanager.

Total annual leave entitlement is 30 dayscovering both privelege leave and casualleave.

The leaves entitlements:

Privilege Leave / Earned Leave : 15 days a year

Medical Leave : 08 days a year

Casual Leave : 07 days a year


33/33

compensation mngt shivu

Documents