hrm_finalll

8/7/2019 HRM_finalll

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COMPENSATION

&BENEFITS

PRESENTED BY

BHANU KALYAN 04

PREETI DHAWAN 09

GHANSYAM

ABHIJEET HELE 17

PRATIK LANGI 28

GOVIND MASRAM 31

NIDHI CHHABRA 36

AKHIL PALRECHA


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Overview of Employee Compensation and Benefit in

India

Employee CompensationEmployee Compensation

SalarySalary AllowancesAllowances& Bonus& Bonus

EmployeeEmployeeBenefitsBenefits


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Companies providing benefit

Analysed items

House Rent Allowance

GratuityHousing Loan

Medical reimbursement/ allowance

Insurance

Leave Travel allowance

HospitalisationVariable Bonus

Conveyance allowance

Superannuation

Car Loan

Social/ Sports club membership

Incentive/ Sales Commission

Hard Furnishing

Medical check-up

Fixed Bonus

Other allowances

Flexible benefit plan


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HOW TO MOTIVATE?

One that i based on the understanding of

how human nature wor s. All humans aremoti ated by 2 things -- leasure orpain.

Ability and moti ation are the core part of

any good employee moti ation program Ability can be improved with training and

education.

Motivation is the willingness of a person to

want to perform a task


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KEY ELEMENTS OF MOTIVATION

PROGRAM Positive reinforcement along with high

expectations, provide training whennecessary.

Treat people fairly, with respect, and honestly

Understanding and addressing employeeneeds.

Teach employees how to set work relatedgoals.

Restructure orreorganize jobs and jobdescriptions when necessary.

Have a rewards system based on jobperformance.


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MOTIVATION TECHNIQUES

One technique to motivate employees thatworks really wellis the employee of the month.

Othereffective employee motivationtechniques include competitions between

teams in orderto get projects completedfaster, awards forperfect attendance, andawards forjobs well done.

Some companies willlet customers rate theircustomerservice representatives. At the end

of a specific time frame an award is given tothe person who has provided the mostoutstanding customerservice.


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OUTCOME OF THE PROGRAMS

Helps in finding out exactly what theemployees like and dislike about theircurrentemployment situation

How employee satisfaction is changing over

any given time period Employee retention and turnoverrates can be

greatly improved by using employeemotivation surveys as exit surveys, thecompany needs to know why employees are

leaving. Is it a skillissue, a pay rate issue, etc. Improving employee retention is a great way to

improve a company's bottom line


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Employee Benefits Insurance Cos viewpoint

Employee BenefitsEmployee Benefits

InsuranceInsurance RetirementRetirement

DefinedDefinedContributionContribution

DefinedDefinedBenefitBenefit

LifeLifeAccidentAccident MediclaimMediclaim LeaveLeaveEncashmentEncashment

GratuityGratuity

SuperannuationSuperannuation


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Mediclaim Insurance

Reimbursement of medical expenses following hospitalization

Cash less hospitalization facility available under certain plans

Tax deduction available for the business

Accident InsuranceAccident InsuranceCan offer compensation for any/all of the following:

Accidental death, disability

Medical expenses for treatment post accident


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Leave Encashment Defined benefit

For whom?

y If company offers encashment of leave, all employees

What benefit?

y Will be based on the company policy.

y Normally xdays salary for each accumulated day of leave

How Funded?

y Institute of Chartered Accountants of India require that aprovision be made for the liability.

y No special tax benefits for self-funding through a trust


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Gratuity Defined Benefit

For whom?

y Engaged in Factories, Mines, Plantations, Railways, Shops

and establishments notified by Government

y In service for 5 successive years

What benefit?

y 15 days wages for each year of service

y Maximum limit Rs 3,50,000/

y7 days wages per season for seasonal occupation

How Funded?

y Special tax concessions if funded through a trust or insurance

company


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Superannuation Defined Contribution/ benefit

Superannuation, is a special way of saving to provide yourself withan income when you retire.

Retirement plans may be set up by employers, insurancecompanies, the government or other institutions such as employerassociations or trade unions

For whom?

y Non-mandatory, defined by company policy

What benefit?

y Can be defined benefit(certain formula of last drawn salary) /definedcontribution(certain %age of salary every month contributed to a fund)

y Can be different for different grades How Funded?

y Special tax concessions if funded through a trust or insurance company


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Retirement Benefits - Trends

Offers a cash-accumulation conventional scheme.

Normal Retirement Age The normal retirement age is 65 years.

Human Resource Department will write to each employee 6 monthsprior to their normal retirement age.

More and more companies now funding through Insurance

Pensions benefits - In general, a pension is an arrangement to

provide people with an income when they are no longer earning a

regular income from employment.


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DEARNESS ALLOWANCE

The Only Purpose of Dearness Allowance is to enable aworkerin event of a rise in cost ofliving to purchase thesame amount of goods of basic necessity as before

DA is calculated based on AICPIN (All India Consumer

Price Index Number) Dearness Allowance is paid on the Basic Pay as defined

in FR 9(21)(a)(i)+NPA, if any (PersonalPay, SpecialPay, etc., not included)

There are 2 kinds of payment of DA as practiced in India

:- linked to cost ofliving index

- not linked to cost ofliving index


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DA and CONSUMER PRICE INDEX

As perthe Rupee-point system, Increase ordecrease in DA is decided based on theaverage Quarterly/Half Yearly increase ordecrease in ConsumerPrice Index Point. For

example in the cement Industry DA increasesordecreases by Rs 2.15 perpoint .The SugarIndustry calculates DA at Rs 2/- perpoint.

The expected All India ConsumerPrice Indexnumber(AICPIN) forIndustrial Workers Base

2001=100 forthe month of May 2010 wasreleased by Statistical Department, Labour.The AICPIN forthe month of May 2010 is 172.


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HOUSE RENT ALLOWANCE

House Rent Allowance is wage in cases

where it is being paid.

In cases where an employee is being paid

house rent allowance, the same will be

included both forcoverage and contribution

In cases where the staffquarters have beenallotted the amount of salary and wages paid

will count forcoverage and contribution and

no notional house rent allowance is to be

presumed in such cases.


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CONVEYANCE ALLOWANCE

Conveyance allowance is paid to the employeeto compensate the expenses incurred by the

employees on travelling etc The travelling allowance orvalue of any

travelling concession is also being paid to theemployees in the nature of conveyanceallowance, which is neitherwages forthepurpose of coverage of employees underSec.2(9), norit is treated as wages forthepayment of contribution underSection 2(22) ofthe ESI Act.


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MEDICAL ALLOWANCE

The employees working infactories/establishments are being providedmedical services in kind by the employerbut incertain factories/establishments instead of

providing medical services in kind, the amountspent by the employees on medical care isreimbursed while in some otherorganisations,employees are being paid monthly cashallowance in lieu of medical aid/reimbursement

of medical expenses. Where such paymentsare made by the employerin lieu of themedical benefit, the same are to be treated aswages underSec.2(22) of the ESI Act


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NEWSPAPER ALLOWANCE

In certain factories/establishments the

employees are reimbursed the cost ofNewspapers while in some otherfactories/establishments the employees arepaid monthly newspapers allowance instead ofreimbursement of the cost of the Newspapers.

Where the amount is being paid regularly to theemployees by the employeras Newspapersallowance the same will be treated as wagesunderSec.2(22) of the ESI Act


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EDUCATION ALLOWANCE

Employees are being paid monthly Educationallowance forthe children studying in theSchools/Colleges. Where such educationallowance is being paid monthly, the same is

to be considered as wages underSec.2(22) ofthe ESI Act and the contribution is chargeableon the said amount.

However, in such cases where instead ofpaying the education allowance on monthly

basis, the amount spent as fee is reimbursedto the employees and booked undereducationallowance, in such cases no contribution ispayable


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DRIVERS ALLOWANCE

In some of the factories/establishments the officersemployed as employees are being paid driversallowance permonth. This allowance is being paid toenable the officers to appoint a driverat theirownlevel and such drivers employed are not being paid

salary directly by the factories/establishments.Where such allowance is being paid to theemployees and the drivers are not engaged by theemployees, in such event the allowance paid assuch will be considered as wage underSection 2(22)of the ESI Act and contribution will be chargeable

provided the employee is coverable undertheScheme


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EMPLOYEES' PROVIDENT FUND

ORGANISATION EPFO statutory body of the Government of

India underMinistry of LabourandEmployment. It administers a compulsorycontributory Provident fund, pension and

an insurance scheme forIndian Workforce.

The primary aim is to provide old-ageincome security so as to contributing to theeconomic and social well-being of Indians

The Employees' Provident Funds andMiscellaneous Provisions Act, 1952 cameinto effect on 4th March 1952


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EPFO (contd)

There are a total of about 40 millioncontributing and non contributing membersin about 450,000 covered establishments.

As perprovisions in force almost anyestablishment in India is required to have aregistration with the basic criterion beingemployment of 20 ormore persons

Contribution is at present 12% ofbasic

salary as employee's share and a matchingcontribution by the employer, with the totalto be 13.61% of the total wages of theemployees.


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GRATUITY

Gratuity is a payment made forthe past services ofthe employee by the employerwhen employee retireorresign from the organization

It is payable for15 days peryearfora period theemployee has worked in the organization

Gratuity is payable to any employee only afterthecompletion of 5 years of continuous service in theorganization

Covered underthe Payment ofGratuity Act,1971: (Last drawn monthly basic salary + dearness

allowance)/26 x 15 days x numberof years ofservice (date of joining date ofretirement/leavingjob)


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EMPLOYEE STOCK OPTION PLAN

An employee stock option is a call option on thecommon stock of a company, issued as a form ofnon-cash compensation

Employee stock options are mostly offered tomanagement as part of theirexecutive compensationpackage

Employee stock options (ESOs) are non-standardized calls that are issued as a privatecontract between the employerand employee. Overthe course of employment, a company generally

issues ESOs to an employee which can be exercisedat a particularprice set on the grant day, generallythe company's current stock price.


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PERFORMANCE LINKED

INCENTIVES

PLI is a form of payment from an employerto an employee, which is directly related tothe performance output of an employee

and which may be specified in anemployment contract

PLI vs. salary

PLI vs. bonus

PLI vs. appraisal PLI vs. retention bonus

Method of calculating PLI


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MARICO

Marico is a leading Indian group providingconsumer products and services in the areas ofHealth and Beauty based in Mumbai

During 2009-10, the company generated aTurnover of about Rs.26.6 billion (USD 600Million), in respect of its food, hair care andskin care related activities

The organisation holds a number of brands viz.

Parachute, Saffola, Sweekar, Hair&Care, Nihar,Shanti, Mediker, Revive,Kaya Skin Clinic,etc

As of 2010, it employs 1000 people


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ORIENTAL BANK OF COMMERCE


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VISION

To be a sound all India, customercentric, efficient retail bank with

contemporary size, technology andhuman capital; endeavouring toenrich lives across all sections ofsociety; and committed to upholding

the highest standards of corporategovernance.


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MISSION

To provide the finest banking services byupgrading human capital and infusing

advanced technology, thereby achievingtotal customer satisfaction; and beingreckoned as the Best Bank in theIndustry on all efficiency parameters.

To enhance shareholders wealth by

ensuring sound growth of business andmake valuable contributions to nationaleconomic growth.


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CSR ACTIVITIES

GRAMEEN PROJECT

'The Comprehensive Village Development

Programmer

14 point action plan


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ALLOWANCES Dearness Allowance

House Rent Allowance Travelling Allowance

Entertainment Allowance

Hilly Area Allowance Medical Allowance

Children Education Allowance


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OTHER

BENEFITS

NIGHT DUTY ALLOWANCEGRATUITY

FESTIVAL ADVANCE

LEAVE ENCASHMENTENTERTAINEMENT


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Our mission is to improve the quality of humanlife by enabling people to do more, feel betterand live longer

Ourbusiness employs 96,500 people in over 100countries

Around 13,000 people work in our researchteams to discover new medicines

Our vaccines are included in immunisationcampaigns in 182 countries worldwide

We delivered 1.4 billion vaccine doses to 179

countries in 2010 Ourlong term vision is for our entire value chain

to be carbon neutral by 2050

Many of our consumer brands are householdnames: alli, Ribena, Horlicks,Lucozade, Aquafres

h, Sensodyne, Panadol, Tums


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Ourproducts

1. Prescription medicines

2. Vaccines3. ConsumerHealthcare


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Salary model:

Basic Rs.170 /- p.m.

Dearness AllowanceR

s. 13179.50/- p.m.

House Rent Allowance Rs.1260.58/- p.m.

Medical Allowance Rs. 292/- p.m.

Education Allowance Rs. 639.43/- p.m.

C/Fpaise Rs.1.89/- p.m.

Total Rs. 15543.4/- p.m.


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Expences :

Dealy Allowance Rs.215/-p.m. (metro city)

Rs.195/-p.m.(otherthan metro city)

Ex. Headquarter Rs.205/-p.day.

Mob. Allowance Rs.500/-p.m.

Local train pass -------

Traveling Allowance Rs. 3.5/- p.km.(perday 140 k.m.)

Stationary Allowance -------


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Incentives: if target achieve

Monthly Rs.2500/-

Quarterly --- Rs.20,000/- Six month Rs.30,000/-

Coverage and Reach----Rs. 2500/-p.m.

Product wise Incentives.

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