Compensation management

COMPENSATION
 HOW PEOPLE ARE PAID AFFECTS PEOPLE’S BEHAVIOR AT
WORK WHICH AFFECT N ORGANIZATION’S CHANCES OF
SUCCESS.
 GIVE EXAMPLES OF BEHAVIORS THAT ARE INFLUENCED.
 QUALITY OF WORK
 ATTITUDE TOWARDS CUSTOMERS
 WILLINGNESS TO LEARN NEW SKILLS/ SUGGESTS INNOVATIONS
 COMPENSATION SYSTEMS CAN HELP AN ORGANIZATION
ACHIEVE AND SUSTAIN COMPETITIVE ADVANTAGE

HOW COMPENSATION IS VIEWED
 Employees –
 Reward for a job well done
 Return for their efforts
 Education
 Training
 Time
 Energy
 MANAGERS –
 Major expense
 Influence employee behavior
 Improve organization’s performance

PAY MODEL
POLICIES T E C H N I Q U E S
ALIGNMEN
T
WORK
ANALYSIS
DESCRIPTI
ON
EVALTN./
CERTIFICATI
ON
INTERNAL
STRUCTUR
E
COMPETITIVEN
ESS
MARKET
DEFINITION
SURVEYS POLICY
LINES
PAY
STRUCTUR
E
CONTRIBU
TIONS
SENORITY
BASED
PERFORM
ANCE
BASED
MERIT
GUIDELINE
S
INCENTIVE
PROGRAMS
MANAGEM
ENT
COST COMMUNI
CATION
CHANGE EVALUATIO
N
OBJECTIVES
EFFICIENCY
•PERFORMAN
CE
•QUALITY
•CUSTOMER
&
STOCKHOLD
ER
•COST
FAIRNESS
COMPLIANCE

 COMPENSATION – ALL FORMS OF FINANCIAL
RETURNS AND TANGIBLE SERVICES AND
BENEFITS EMPLOYEES RECEIVE AS PART OF
EMPLOYMENT RELATIONSHIP
 CATEGORIZED AS:
 TOTAL COMPENSATION
 RELATIONAL RETURNS

COMPENSATION OBJECTIVES
 Compliance with laws
 LABOR STANDARDS

Republic of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
National Capital Region
Checklist for Self-Assessment on Compliance with Labor Standards
Annex 1
This Checklist shall be accomplished jointly by a representative each of the owner/ employer and the workers in organized
establishments and/ or those employing 200 workers and above. Please refer to the Manual on Labor Standards where
necessary. Accomplished Checklist shall be submitted to the DOLE Regional Director not later than _______________
Type of Workplace Highly HazardoType of Workplace Highly Hazardousus
HazardousHazardous NonNon--HazardousHazardous
Total AssetsTotal Assets
(as of date of Audit)(as of date of Audit)
Name of Union:Name of Union:
CBA Duration:CBA Duration:
From: _______________From: _______________
To: _________________To: _________________
Authorized CapitalizationAuthorized Capitalization
(as of date of Audit)(as of date of Audit)
TotalTotalFemaleFemaleAge GroupAge Group
No. of ShiftsNo. of Shifts
No. of aliensNo. of aliens
EmployedEmployed
No.of ApprenticesNo.of ApprenticesEmploymentEmployment
Owner/ Manager/ PresidentOwner/ Manager/ President Kind of Business/ Economic Activity/ Principal ProductKind of Business/ Economic Activity/ Principal Product
Below 15Below 15
1515 –– 17 yrs17 yrs
1818 –– 30 yrs30 yrs
Above 30Above 30
TotalTotal
GEO CodeGEO Code
PSIC CodePSIC Code
AddressAddressName of EstablishmentName of Establishment
GENERAL INFORMATION
Payment of Wages (see attachedPayment of Wages (see attached
Manual)Manual)
Not ComplyingNot ComplyingComplyingComplying
WAGESWAGES
Minimum Wages (refer to attachedMinimum Wages (refer to attached
list on applicable Minimum Wage)list on applicable Minimum Wage)
Schedule of CorrectionSchedule of Correction
(state date necessary(state date necessary
corrections/ restitutions will becorrections/ restitutions will be
made)made)
Required CorrectionRequired Correction
(state the number of workers affected(state the number of workers affected
and amount of required restitutions)and amount of required restitutions)
FindingsFindings
(check whether complying or not)(check whether complying or not)
Labor StandardsLabor Standards
GENERAL LABOR STANDARDS

Special DaySpecial Day(no work no pay; work(no work no pay; work
on special days shall be paid regularon special days shall be paid regular
wage plus at least 30%; special daywage plus at least 30%; special day
work falling on employee’s schedulework falling on employee’s schedule
rest day shall be paid additional 50%rest day shall be paid additional 50%
of daily rate)of daily rate)
Regular Holiday PayRegular Holiday Pay(with pay even(with pay even
if unworked; work on regular holidayif unworked; work on regular holiday
shall be paid additional 100% of dailyshall be paid additional 100% of daily
rate; work on regular holiday fallingrate; work on regular holiday falling
on employee rest day shall be paidon employee rest day shall be paid
200% plus 30% thereof)200% plus 30% thereof)
Night Shift DifferentialNight Shift Differential (Not less(Not less
than 10% of regular wage for eachthan 10% of regular wage for each
hour of work performed bet 10pmhour of work performed bet 10pm--
6am)6am)
Overtime PayOvertime Pay (additional 25% of(additional 25% of
hourly rate for work performed onhourly rate for work performed on
ordinary day; additional 30% for restordinary day; additional 30% for rest
day, special or regular holiday)day, special or regular holiday)
1313thth Month PayMonth Pay (not less than 1/12 of(not less than 1/12 of
total basic salary earned withintotal basic salary earned within
calendar year. Does not includecalendar year. Does not include
COLA and other benefits notCOLA and other benefits not
integrated as part of basic salary. Tointegrated as part of basic salary. To
be paid not later than 24 Decemberbe paid not later than 24 December
of each year.)of each year.)
ECOLAECOLA (refer to attached list on(refer to attached list on
applicable ECOLA)applicable ECOLA)
Workers paid by result (see attached)Workers paid by result (see attached)
Apprentices/Learners (75% ofApprentices/Learners (75% of
minimum wage)minimum wage)
made)made)
FindingsFindings
Annex 1

Service Incentive LeaveService Incentive Leave (five days(five days
with pay per year for those with atwith pay per year for those with at
least one year of service;least one year of service;
commutable to its money equivalentcommutable to its money equivalent
if not used within one year)if not used within one year)
Meal PeriodMeal Period (not less than one hour(not less than one hour
timetime--off for regular meals, which isoff for regular meals, which is
notnot compensablecompensable. Shorter meal. Shorter meal
period of not less than 20 minutesperiod of not less than 20 minutes
may be given provided that ismay be given provided that is
credited ascredited as compensablecompensable hours ofhours of
work and subject to certainwork and subject to certain
conditions)conditions)
Service ChargesService Charges (collected by most(collected by most
hotels, restaurants and similarhotels, restaurants and similar
establishments. 85% shall beestablishments. 85% shall be
distributed equally among the rankdistributed equally among the rank--
andand--file employees and 15% forfile employees and 15% for
management to answer for lossesmanagement to answer for losses
and breakages and for distribution toand breakages and for distribution to
managerial employees at themanagerial employees at the
discretion of management)discretion of management)
Rest Day WorkRest Day Work (additional 30% of(additional 30% of
daily rate for work performed on restdaily rate for work performed on rest
days; additional 50% for workdays; additional 50% for work
performed on a rest day which is alsoperformed on a rest day which is also
a special day; additional 30% of thea special day; additional 30% of the
regular holiday rate of 200%)regular holiday rate of 200%)
made)made)
FindingsFindings
Annex 1

Labor Standards
Findings
(check whether
complying or not)
Required Correction
(state the number of workers affected
and amount of required restitutions)
Schedule of Correction
(state date necessary
corrections/ restitutions will be
made)
Compl
ying
Not
Complying
Weekly Rest Periods (not less than 24
consecutive hours after every six (6)
consecutive normal workdays)
Paternity Leave (seven days with pay
including allowance for the first 4 deliveries;
not convertible to cash)
Maternity Leave (60 days of normal delivery/
78 days for caesarian section; benefit for first
4 deliveries, abortion/ miscarriage)
Solo Parent Leave(not more than 7 working
days every year)
Violence against women /children/VAWC
LEAVE
Gynecological leave
Social Amelioration Program Bonus (all
millers, except refineries and all sugar
planters)
Retirement Pay - RA 7641 (distinct and
separate from SSS benefits)
Payroll/Daily Time Records/Employment
Permit – keep at workplace; at least 3 years-
period)
List of Labor Component (list of employees,
length on status of employment salary)
GENERAL LABOR STANDARDSAnnex 1

Airborne Contaminant ControlAirborne Contaminant Control
(provide PPE, improve technical(provide PPE, improve technical
process, improveprocess, improve ventillationventillation))
ProperProper VentillationVentillation (provision of(provision of
natural or artificial air supply)natural or artificial air supply)
Radiation Exposure ControlRadiation Exposure Control
(provide PPE, Examination of work(provide PPE, Examination of work
area)area)
Noise Pollution ControlNoise Pollution Control (provide(provide
appropriate PPE or isolation of workappropriate PPE or isolation of work
area)area)
Adequate LightingAdequate Lighting (in Work(in Work
Areas/in aisles, passageway)Areas/in aisles, passageway)
Waste Disposal SystemWaste Disposal System (waste(waste
receptacle and its removal;receptacle and its removal;
drainage system)drainage system)
Materials Handling & StorageMaterials Handling & Storage
(appropriate labels, dotting and(appropriate labels, dotting and
storage)storage)
Good Housekeeping (Good Housekeeping (conditions ofconditions of
floors, walls and storage)floors, walls and storage)
Emergency ExitsEmergency Exits (2 per floor)(2 per floor)
Adequate Aisles/PassagewaysAdequate Aisles/Passageways
((sufficient width and height and withsufficient width and height and with
sighs and markings)sighs and markings)
Registration of EstablishmentRegistration of Establishment
((Rule 1020, OSHSRule 1020, OSHS))
made)made)
FindingsFindings
StandardsStandards
OCCUPATIONAL SAFETY AND HEALTH STANDARDSAnnex 1

Emergency MedicinesEmergency Medicines
Continuing training related to OSHContinuing training related to OSH
Health PersonnelHealth Personnel (First(First--AiderAider,,
nurse, physician, dentist)nurse, physician, dentist)
Medical FacilitiesMedical Facilities (Treatment room,(Treatment room,
clinic)clinic)
Health and Safety OrganizationHealth and Safety Organization
(according to number of employees)(according to number of employees)
Safety Officer / Accredited SafetySafety Officer / Accredited Safety
PractitionerPractitioner (number depends on(number depends on
number of workers employed)number of workers employed)
Personal FacilitiesPersonal Facilities (separate toilet,(separate toilet,
supply of potable water, washingsupply of potable water, washing
facilities, etc.)facilities, etc.)
No Imminent Danger SituationNo Imminent Danger Situation
(condition that could cause death(condition that could cause death
or serious physical harm)or serious physical harm)
Provide Machine GuardingProvide Machine Guarding (railing(railing
and casing on moving parts)and casing on moving parts)
Proper Office SpacingProper Office Spacing (between(between
workers and machines)workers and machines)
Fire Protecting Equipment /Fire Protecting Equipment /
FacilitiesFacilities ((water tank, firewater tank, fire
extinguishers, conduct of fire drill)extinguishers, conduct of fire drill)
Personal Protective EquipmentPersonal Protective Equipment
((provision and appropriate trainingprovision and appropriate training))
made)made)
FindingsFindings
StandardsStandards

Construction Worker’s SkillsConstruction Worker’s Skills
CertificateCertificate
Construction Heavy EquipmentConstruction Heavy Equipment
(CHE)(CHE)
Construction SafetyConstruction Safety SignagesSignages
Construction Heavy EquipmentConstruction Heavy Equipment
OperatorsOperators
DOLE Approved ConstructionDOLE Approved Construction
Safety and Health and SafetySafety and Health and Safety
ProgramProgram
d. Annual Medical Reportd. Annual Medical Report (health(health
record of programs and activities)record of programs and activities)
b. Employee’s Workb. Employee’s Work
Accident/Illness Exposure DataAccident/Illness Exposure Data
ReportReport (for every accident)(for every accident)
c. Annual Work Accident/Illnessc. Annual Work Accident/Illness
Exposure Data ReportExposure Data Report (whether or(whether or
not there’s an accident)not there’s an accident)
a. Minutes of Meeting of HSCa. Minutes of Meeting of HSC
Administrative Reports on HealthAdministrative Reports on Health
and Safetyand Safety
made)made)
FindingsFindings
StandardsStandards

HIV/AIDS ProgramHIV/AIDS Program (education and(education and
information)information)
Work Permit (Child Labor)Work Permit (Child Labor)
Apprenticeship/Apprenticeship/LearnershipLearnership ProgramProgram
(duly approved by TESDA)(duly approved by TESDA)
Create Committee on DecorumCreate Committee on Decorum
Posting/dissemination of RA 7877Posting/dissemination of RA 7877
Company PolicyCompany Policy
Registration ofRegistration of
Contractor/SubcontractorContractor/Subcontractor ((DepartmentDepartment
Order No. 18Order No. 18--02)02)
Company initiating capability buildingCompany initiating capability building
activitiesactivities
DrugDrug--Free Workplace Policy/ProgramFree Workplace Policy/Program
((Department Order No. 53Department Order No. 53--03)03)
Family Welfare Committee (FWC)Family Welfare Committee (FWC)
Family Welfare Program (FWP)Family Welfare Program (FWP)
Coverage/Remittance withCoverage/Remittance with
PHILHEALTHPHILHEALTH
Certificate of Remittance toCertificate of Remittance to
PagPag--IBIGIBIG
Registration withRegistration with PagPag--IBIGIBIG
Registration with SSSRegistration with SSS
Certificate of Remittance to SSSCertificate of Remittance to SSS
Alien Employment PermitAlien Employment Permit
AntiAnti--SexualSexual HarrasmentHarrasment LawLaw
made)made)
FindingsFindings
(check whether complying or(check whether complying or
not)not)StandardsStandards
OTHER RELATED LABOR LAWS/ISSUANCESAnnex 1

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