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Compensation, Wages Compensation, Wages & & Benefit Administration Benefit Administration Unit 3 Unit 3 NEW AGE NEW AGE Human Resource Management Human Resource Management and and Impact of Employment Impact of Employment Legislations in Legislations in India India

Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

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Page 1: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Compensation, WagesCompensation, Wages

&&

Benefit AdministrationBenefit Administration

Compensation, WagesCompensation, Wages

&&

Benefit AdministrationBenefit Administration

Unit 3Unit 3

NEW AGE NEW AGE

Human Resource Management Human Resource Management

andand

Impact of Employment Legislations in Impact of Employment Legislations in

IndiaIndia

NEW AGE NEW AGE

Human Resource Management Human Resource Management

andand

Impact of Employment Legislations in Impact of Employment Legislations in

IndiaIndia

Page 2: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Labour Laws on Wages & Extra Hours of workLabour Laws on Wages & Extra Hours of workLabour Laws on Wages & Extra Hours of workLabour Laws on Wages & Extra Hours of work

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Provisions of the Act Provisions of the Act Provisions of the Act Provisions of the Act

Minimum wage requirement sets wage floorMinimum wage requirement sets wage floorMinimum wage requirement sets wage floorMinimum wage requirement sets wage floor

Child labor (under 14 years old) is prohibitedChild labor (under 14 years old) is prohibitedChild labor (under 14 years old) is prohibitedChild labor (under 14 years old) is prohibited

Requires overtime payments for non-exempt employeesRequires overtime payments for non-exempt employeesRequires overtime payments for non-exempt employeesRequires overtime payments for non-exempt employees

Exempts highly-paid Managerial Staff & over time Exempts highly-paid Managerial Staff & over time Exempts highly-paid Managerial Staff & over time Exempts highly-paid Managerial Staff & over time

Requires overtime Requires overtime pay for hours over 48 hourspay for hours over 48 hoursRequires overtime Requires overtime pay for hours over 48 hourspay for hours over 48 hours

Requires compensatory time at overtime – twice Requires compensatory time at overtime – twice Requires compensatory time at overtime – twice Requires compensatory time at overtime – twice

Page 3: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Compensation Systems Compensation Systems Compensation Systems Compensation Systems

Objectives of an Effective Compensation System:

Legal compliance with all appropriate laws and regulations

Cost effectiveness for the organization

Internal, external, and individual equity for employees

Performance enhancement for the organization

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Page 4: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Nature of CompensationNature of CompensationNature of CompensationNature of Compensation

Types of Rewards

IntrinsicIntangible, psychological and social effects of compensation

Extrinsic

Tangible, monetary and nonmonetary effects of compensation

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Page 5: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Components of A Compensation ProgramComponents of A Compensation ProgramComponents of A Compensation ProgramComponents of A Compensation Program

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Page 6: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Compensation Models & Wages Structures Compensation Models & Wages Structures Compensation Models & Wages Structures Compensation Models & Wages Structures

Compensation Type

Wage Structure Administrative Heads

Compensation Design Various options

Salary Gross Salary, Earned Wages & Net Salary, Take Home Salary

Variable Pay Compensation linked to individual, team, or organizational performance.

Benefit An indirect reward given to an employee or group of employees as a part of organizational membership.

Deductions Statutory, Non Statutory / Authorized

Recovery Damages, Fine and others

CTC Contributions to by the Employer , direct / indirect cost and long term provisioning

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Page 7: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Legal classification of Pay components Legal classification of Pay components Legal classification of Pay components Legal classification of Pay components

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Page 8: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Competency-Based Pay & Legal Limitations Competency-Based Pay & Legal Limitations Competency-Based Pay & Legal Limitations Competency-Based Pay & Legal Limitations

Maintenance ofCompetencies

Maintenance ofCompetencies

LimitationsLimitationsConsideration

based on Competencies

Consideration based on

Competencies

TrainingTraining

Competency-Competency-Based Pay Based Pay SystemsSystems

Competency-Competency-Based Pay Based Pay SystemsSystems

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Page 9: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Compensation – Applicable Legislations in India Compensation – Applicable Legislations in India Compensation – Applicable Legislations in India Compensation – Applicable Legislations in India

Minimum Wages ActMinimum Wages ActThe Payment of Wages ActThe Payment of Wages ActEqual Remuneration ActEqual Remuneration ActWorkman Compensation ActWorkman Compensation ActEPF Act , ESI Corporation ActEPF Act , ESI Corporation ActThe Payment of Bonus ActThe Payment of Bonus ActThe Maternity Benefit ActThe Maternity Benefit ActThe Payment of Gratuity Act The Payment of Gratuity Act The Tamil Nadu Subsistence Allowance ActThe Tamil Nadu Subsistence Allowance Act The Apprentice ActThe Apprentice Act

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Page 10: Compensation, Wages & Benefit Administration Compensation, Wages & Benefit Administration Unit 3 NEW AGE Human Resource Management and Impact of Employment

Specific Questions Specific Questions Specific Questions Specific Questions

SECTION Wages & Compensation

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