compensation

1. Presented By:
Rudrakshi Singh
Roll No.: 44

2.  Compensation is the total amount of the monetary and non-
monetary pay provided to an employee by an employer in
return for work performed as required
 Combination of pay, vacation, bonuses, health insurance,
and any other perk one may receive, such as free lunches and
parking

3.  To recruit & retain
qualified employees
 To increase or maintain
morale
 To determine basic wage
& salary
 To reward for job
performance

4. Effective
Compensation
Motivate &
Retain Staff
Attract talent
Image Building
Administratively
Efficient
Reward Valued
Behavior
Ensure Equity
Institutional
effectiveness
Legal
Compliance
Employee
Management

5. HIGH COMPENSATION – LOW
COMMITMENT
Hired Guns
HIGH COMPENSATION – HIGH
COMMITMENT
Professionals
LOW COMPENSATION – LOW
COMMITMENT
Workers as commodity
LOW COMPENSATION – HIGH
COMMITMENT
Family oriented
organization

7.  Wage and Salary
 Incentives
 Fringe Benefits
 Perquisites

8.  For Employer
1. Brand image (employer of choice) for attracting
candidates
2. Motivating employees for higher productivity and
performance
3. Retaining talent
4. Consistency in compensation
5. Provoking healthy internal competition
 For Employee
1. Work-life Balance
2. Recognition as tool to self esteem
3. Planning for better quality of life

9.  Productivity of workers
 Ability to Pay
 Government
 Labor Union
 Cost of living
 Demand and supply of labor
 Prevailing wage rate

10. Minimum Wages Act
Income Tax Act
Equal Remuneration Act
Payment of Wages Act
Acts on social securities

11. Monthly salary components
1. Basic Salary
2. Dearness Allowance
3. House Rent Allowance
4. Conveyance Allowance
5. Others (Shift Allowance, Uniform Allowance,
Education Allowance)

12. Incentives
1. Time based incentive
2. Production based incentive
3. Task based incentive
Social Security / Statutory payments
1. Contribution towards Provident Fund
2. Contribution towards ESI
3. Payment of Bonus
4. Payment of Gratuity (not part of wages but considered
part of CTC)

13.  Work Life Balance
 Pay Transparency
 Broad Banding
 Variable Pay
 Flexible Benefits
1. Modular Plans
2. Core-Plus Options
3. Flexible Spending Accounts
 Employee Stock Ownership Plan