Compensation and Benefits is branch of human resources which focuses on how employees should be paid and what benefits to offer.

1. Compensation and
Benefits
By Chenaye Mercado

2. What is Compensation and Benefits?
• is a branch of human resources that focuses on how a company or
organization pays his or her employees and provide them with benefits. It
includes the process of determining how much an employee should be paid
and deciding what benefits should be offered.
(Q. Genius, 2022)

3. Compensation
• Employee Remuneration
• Is the compensation an employee receives in return for his or her
contribution to the organization or company.

4. Benefits
• These are also known as perks or fringe benefits, are provided to employees
over and above salaries and wages. These employee benefit packages may
include overtime, medical insurance, vacation, profit sharing and retirement
benefits, to name just a few.
• It shows them you are invested in not only their overall health, but their
future.

5. Employee Compensation Benefit Package
• Salary increase
• Health insurance offerings (medical, dental, vision)
• Life insurance
• Parental leave
• Retirement plans
• Vacation and sick time
• Overtime pay
• Bonuses, commissions, and merit pay
• Reimbursement programs

6. Two Elements of Compensation
• Fixed Pay – base pay that does not vary
• Variable Pay – pay that changes with performance or results
(MBA Karlo, 2020)

7. Importance of Compensation & Benefits
• Attract and retain talented employees
• Motivate employees to achieve organization’s goals
• Used to reward employees for their hard work and dedication
• Reduce employee turnover and improve morale

8. Statutory Mandatory Benefits
• also known as mandatory benefits, are entitlements that employers are
obligated by law to provide to their employees.
Examples:
 paid annual leave
 parental leave
 worker's compensation insurance
 paid sick leave

9. Exceptions
 Field Personnel
 Establishments with less than ten workers (10)
 Kasambahay
 Government Employees
 Managers
 Contract-based workers
 Commission-based workers

10. What is Minimum Wage?
• the minimum amount of remuneration that an employer is required to pay
wage earners for the work performed during a given period, which cannot be
reduced by collective agreement or an individual contract
PURPOSE:
The purpose of minimum wages is to protect workers against unduly low pay.

11. Basis for Minimum Wage Rates
• Normal working hours of 8 hours/day

13. Holiday Pay
• The employee with receive the normal daily rate even if they did not
come to work during the regular holiday provided that they are
present or if they filed a leave with pay during the work day before
the Holiday.

14. Regular Holiday
If the work is performed on a regular holiday that is also a rest day,
the employee gets a total of 260%.

15. Premium pay
• Employees are eligible to receive premium pay for working on their
rest days or special holidays. If an employee needs to work on their
rest day or special day, they receive an extra 30% of their daily
salary.

16. Night shift Differential
• The labor laws of the Philippines make it mandatory to pay night
shift differential to the workers working between 10PM to 6AM. The
nightshift differential must not be less than 10% of the worker's
regular salary.

17. Overtime
• If an employee works more than eight hours on an ordinary
workday, they are entitled to an extra 25% of their average hourly
rate.