BATCH: 2021 – 2023

SEMESTER: 3

CIA-2
A typical compensation package
of a benchmark job.

SUBMITTED TO: Dr.Uma

Warrier Specialization: - MHR

Submitted By: -

NAME USN NUMBER

Sankalp s martukar 21MBAR0079
Merlin Priya M 21MBAR00525
chakradhar 21MBAR0050
Compensation and Benefit: -

Compensation and Benefits in HRM refer to the salary,

monetary, and as well as non-monetary privileges provided to
the employees at the workplace by the organization. It is a
primary tool of the Human Resource Managers to bring out the
best potential of the employees in their work. It works in a way
– ‘Better is the compensation & benefits, better is the
performances and retention!’ From internal motivation to the
higher level of productivity, Compensation and Benefits does it
all!
Compensation Package Breakdown for Associate Talent Scout

NAME: Duvvuruvishunu

EMPLOYEE ID: - E14578

DESIGNATION: - Talent Partner

DATE OF JOINING: - 1st Sept 2018

LOCATION: - Bangalore

CONTACT INFORMATION: - 8978185881

Compensation breakup
SALARY COMPONENTS CTC Per month (1 to CTC Per CTC Per Annum
3 months ) month (4 to
12 months )
Basic pay 4,500 4,500 54,000
House Rent Allowance 1,800 1,800 21,600
Advance statutory bonus 1,135 1,135 13,620
Special allowances 7,325 7,325 87,900
Total fixed components 14,760 14,760 177,120
benefits
Provident fund – employer contribution 4,500 4,500 19,620
Medical insurance 1,800 1,800 2,340
Life insurance 1,135 1,135 600
Gratuity 7,325 7,325 2,592
ESI contribution @ 4.75% 14,760 14,760 9,672
Total benefits 4,500 4,500 34,824
Variable component
Production incentive (ECOP from 4th to 12th month 0 1400 12600
based on performance)
Self to work ( STW ) 2200 2200 26400
Total variable component 2200 3600 39000
Total CTC per month 19,862 21,262 2,50,944
Benefit / scheme Description

Advance Statutory Bonus Statutory Bonus is applicable to those employee's

whose basic salary is less than or equal to Rs.
21,000/pm as per the payment of
bonus (amendment) Act, 2015

Production incentive (ECOP) As per Employee Cash Option Plan Policy of the
company. The incentive is paid only if you meet all
the performance requirements

Self To Work (STW) Applicable as per Self to Work Policy. This amount
is
paid only if employee opts for STW on HRMS
Actual payout will vary based on attendance for
the month. This is not applicable for female
employees working in shifts beginning and ending
between 7pm to 6am

Company Transport Company sponsored transport will be provided to

employee from second day of FLE training
(Residing in areas within the hiring radius as per
company
policy)
Group Medi Claim Policy (GMC) You are covered under the voluntary Group
Medical insurance Policy of the Company It's the
employer's responsibility to enroll, dependents as
per
company's policy
Group insurance of EDLI ( under PF ) An Insurance benefit in the event of demise of an
employee is provided under this Group Insurance
Scheme during an employee’s term, to Nis
Nominee/Family

Group Personal Accident (GPA) You are covered under the voluntary group
Personal accident insurance policy of the company
Group Term Life (GTL) You are covered under the voluntary Group Term
Life insurance policy of the company
ESI Processed as per Employees' State Insurance Act.
1948 ESI is applicable for employees whose actual
gross income pm is less than or equal to Rs.
21.000/ if the actual gross earnings pm is more
than Rs.
21,000, then the above mentioned ESI
contribution will not As applicable. Employee's
contribution 1.75% of actual gross salary including
Shift Allowance and STW (if applicable) will be
deducted accordingly

Gratuity & Provident fund Processed as per the Payment of Gratuity Act
1972 & Employees Provident funds Act, 1952
respectively. PF contribution is based on min
wages and capped at 12% of Rs 15,000 pm as As
applicable" applicable), Employee and employer
will contribute according
Flexible Salary Components for Allocation *

1. House Rent Allowance (Max 100% of monthly Base Pay)

2. Conveyance allowance.
3. Education allowance upto Rs. 100 per child for maximum 2 children per month.
4. Hostel Allowance upto Rs. 300 per child for maximum 2 children per month.
5. Leave Travel Allowance (10% of Annual Fixed Cost or a maximum of Rs 200000/- whichever is
lower)
6. Meal Card for Rs. 1300/- issued on monthly basis.

Social Security Component **

Supperannuation Fund 15% of the basic will adjust from flexible salary if opted.

The above chart is a representation of the salary structure of Mr.vishunu , whose designation in
the organization is Talent Partner.

His roles and responsibilities in the organization are:-

1. Sourcing Candidates from various portals and referrals.

2. Stakeholder Management.
3. Screening the candidates via call or face to face.
4. Scheduling technical rounds with the right panellist and taking up HR rounds.
5. Once the candidate is selected, Collecting and Verifying the authenticity of all
the documents.
6. Onboarding procedures.
 Annual (Rs.)

Base Pay Flexible salary Total (A) Social security

Provident Fund (Company Contribution) Gratuity (Company Contribution)

Monthly(Rs.)

Base Pay Flexible salary Total (A) Social security

Provident Fund (Company Contribution) Gratuity (Company Contribution)

Different Components of Employee Compensation
Employees within an organization are subject to various benefits and organizations based on employee
skills, experience, performance, job level, etc. The different components of employee compensation
include basic pay, HRA, DA, special allowances, etc.

Basic Salary

The basic pay is the basic salary withdrawn by an employee in an organization. It depends on the
company’s policies and the laws of the company. It is that part of the salary that is taxed.

House Rent Allowance (HRA)

Few companies provide their employees with accommodation or home rent allowances. This is in addition to
the paid salary. It is generally calculated based on the basic salary obtained by an employee.

Dearness Allowance (DA)

In some places where there is an inflation in the price of goods and services, dearness allowance helps curb
the impact of the price difference. This component of employee compensation helps the employees adapt to
the changes in standard of living.

Travelling Allowance

Specific organizations provide travel allowances when an employee needs to travel. It may or may not be
included in the basic salary. Its calculation differs from company to company and requires proof of travel.
Often employees use their funds to travel, which is later reimbursed by the company.

Other Special Allowances

Other special allowances are the monetary benefit given to the employee above the basic salary to meet specific
requirements. The employers offer these additional benefits for the meeting expenditures, etc.

Variable Pay

Variable pay is that portion of the salary determined based on employee performance. When an employee hits
a target or does overtime, variable pay is given in incentives, bonuses, or commissions. It is given out for the
additional contribution beyond an employee’s workload.

Stock Options

It is a part of employee compensation where companies employees and executives of the company are granted
equity. These shares are issued by the company and cannot be sold. It is generally associated with a new
company and is awarded to the employees as an incentive for working hard towards the company’s growth. In
other words, it can also be said that the employees own a part of the organization.

Components of Employee Benefits

Employee benefits can be monetary, non-monetary, or both. Employee benefits help in

attracting and retaining the right talent in a company. These benefits can be paid time off,
medical insurances, etc.

Paid Time Off

It is an essential component of employee benefits where employees can still receive a salary
when they take leave or vacation. Also, according to the employee’s position, they can receive a
privilege leave.

Medical Insurance

It is another part of employee benefits and compensation and includes health insurance, family
health insurance, hospital cover, etc. A few companies also cover the death of an employee and
provide financial assistance to the family members of the deceased employee.

Fringe Benefits
It is a non-monetary benefit and covers educational assistance, childcare, flexible healthcare
expenditures, etc. It may include benefits such as a company car, gym membership, etc. Fringe
benefits may also provide entertainment allowances, discounted travel tickets, family vacation
packages, etc.

Loyalty and Retirement Benefits

A retirement plan as part of the employee benefits package is an essential factor in employee
loyalty. By offering retirement benefits, an organization maximizes their success rate; it can
become easy to get top talents on the door and retain them in the company.