Scribd
Upload
6 views22 pages

01 Compensation Income

Uploaded by

edzendarylyepes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
6 views22 pages

01 Compensation Income

Uploaded by

edzendarylyepes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 22

COMPENSATION

INCOME
Compensation Income
 a systematic approach to providing monetary value to
employees in exchange for work performed.
Compensation may achieve several purposes assisting
in recruitment, job performance, and job satisfaction.
How is Compensation used?
 recruit and retain qualified employees.
 increase or maintain morale/satisfaction.
 reward and encourage peak performance.
 achieve internal and external equity.
 reduce turnover and encourage company
loyalty.
 modify (through negotiations) practices of
unions.
Classification of Compensation Income

 Basic pay gratuities • Vacation and sick leave


(salary or
wage)  Hazard or • Thirteenth month pay
emergency
 Honoraria pay • Separation pay
 Fixed or  Retirement • Fringe benefits and de
variable pay minimis
allowance
 Pension • Overtime pay
 Commission
• Profit sharing
 Fees
• Awards for special services
 Tips and
• Beneficial payments
Basic salary or wage

•The remuneration
paid to employees for
work performed on
behalf of an employer
or services provided.
Honoraria

•a money or anything of economic value offered for a speech,


appearance, or article in connection with an officer or
employee’s official duties

• ex gratia payment (i.e., a payment made without the giver


recognizing himself as having any liability or legal obligation
made to a person for his or her services in a volunteer capacity
or for services for which fees are not traditionally required).
Fixed or variable allowance

•A stipend given to
employees who utilize their
own vehicles for work
related travel. The
allowance covers variable
costs such as gasoline, oil
and other routine
maintenance. Further, it
may include fixed costs such
as depreciation, insurance
and taxes.
Commission
•what you pay to employees when they make a sale or
accomplish some other goal. Commissions can be a
percentage of a sale, or they can be a flat amount based on
the sales volume. These types of payments are based on
RESULTS.
Fees

•received by an employee for services rendered to the employer.

•a payment made to a professional person or to a professional or


public body in exchange for advice or services, an estate of land,
Tips and gratuities

•money that has been paid or given to


or left for an employee by a patron of a
business over and above the actual
amount due for services rendered or for
goods, food, drink, articles sold or
served to patrons.
Hazard or emergency pay

•a form of compensation granted to


staff members who have been
requested to remain and report for
work in duty stations where very
hazardous conditions, such as war or
active hostilities, prevailed and
where the evacuation of families and
nonessential staff had taken place.
Retirement pay

•payable to the member of the pension scheme on retirement or


earlier withdrawal from service, including retirement lump sums
or gratuities; benefits payable following the member’s death in
retirement and periodic increases whilst in payment.
Pension

•A benefit, usually money, paid regularly to retired employees or


their survivors by private businesses and federal, state, and
local governments.
Vacation and sick leave

• a form of employment benefit


in the form of paid time off for
illness or to deal with a
personal/private matter. By law,
companies are required to grant
their staff, who have worked for
them for a year, SIL equivalent
to five days. These five days can
be used either as sick or
vacation leave.
Thirteenth month pay and other benefits

•Under Presidential Decree No. 851, employers from the private


sector in the Philippines are required to pay their rank-and-file
employees a Thirteenth 13th Month Pay not later than
December 24 every year.
Separation pay

•connected to the Labor Code within the Philippines, it must be


given to a person that is employed to a company that has been
separated from his or her service within the business.
Fringe benefits and de minimis

•facilities and privileges of relatively small value and provided by


an employer to employees merely as a means to promote their
health, good will, contentment, or efficiency.
Overtime pay

•Overtime is considered as any pre-authorized work performed


during a given work period that exceeds your contractually
agreed working hours.
Profit sharing

•various incentive plans introduced by businesses that provide


direct or indirect payments to employees that depend on
company's profitability in addition to employees' regular salary
and bonuses. In publicly traded companies these plans typically
amount to allocation of shares to employees.
Awards for special services

•the amount received as an award for an employee’s special


services, or suggestions to the employer for the benefit of the
company.
Beneficial payments

•Payments such as where an employer pays the income tax


owed by an employee.
Other forms of compensation

•Other forms received due to service rendered (i.e.


compensation paid in kind)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy