Human Resource Management Report

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COMPENSATION, BENEFITS AND WORKING CONDITIONS

One of the most difficult functions of personnel management is that which concerns compensating the employees fairly and equitably.

OVERVIEW OF THE COMPENSATION SYSTEM

The American Regime
* Act No. 102 Act Regulating the Salaries of Officers and Employees in the Philippine Civil Service

The Commonwealth Regime
* Commonwealth Act No. 402 An Act to Provide for the Classification of Positions and Standardization of Salaries in the Government

The Philippine Republic
* Position Classification and Pay Plans of 1957
* Budgetary Reform Decree on Compensation and Position Classification of 1976 Presidential Decree No. 985 * Compensation and Classification Act of 1989 Republic Act No. 6758 An Act Prescribing a Revised Compensation and Position Classification System in the Government and for Other Purposes – Salary Standardization Law

RA 6758 – Salary Standardization Law
* Integrated allowances and benefits into the salary
* Increased the salary schedule from 28 to 33 grades
* Reduced classes of positions
* Implemented salary increase based on the revised schedule

(Please see attached Table for Total Compensation)
TOTAL COMPENSATION PACKAGE

Governing Principles of the Compensation Plan
* All government personnel shall be paid just and equitable salaries and wages * The basic pay for all personnel in the government shall generally be comparable with those in the private sector * The total compensation program of government personnel shall be maintained at a reasonable level in proportion to the national budget * Government compensation rates shall be reviewed periodically taking into account possible erosion in purchasing power due to inflation and other economic factors

Salary Schedule
* The salary schedule under the CP is a table of Salary Grades (SG) consisting of several salary steps with corresponding money values. * A salary grade represents a level of difficulty and responsibility of work. The present salary schedule consists of 33 salary grades. * Each salary grades 1 to 32 consists of 8 salary steps which are used to provide incentives for length of service in the position. Salary grade 33 has only 1 salary step. * The 1st salary step is the minimum or hiring rate. The 2nd to 7th salary step is the maximum salary rate. * All rates in the salary schedule represent full compensation for fulltime employment in a 40-hour work week regardless of where the work is performed. * The daily wage represents full compensation for fulltime employment in an 8-hour work day regardless of where the work is performed. The daily rate shall be computed based on the authorized/actual monthly rate for the position divided by 22 days.

RA 6758 - An Act Prescribing a Revised Compensation and Position Classification System in the Government and for Other Purposes – Salary Standardization Law

Different Methods of Job Evaluation as a Basis of Determining the Salary of a Position (Pricing the Job) * Ranking Method – jobs/positions are ranked from the lowest to the highest. * Point System/Point Ranking Method – components of positions such as responsibility, effort, skills and working conditions are allocated point values with corresponding weights. * Factor Comparison Method – organization selects from a cross section jobs, key jobs known as benchmarks or standards. * The 1st salary step is the minimum or hiring rate. The 2nd to 7th salary step is the maximum salary rate. * All rates in the salary schedule represent full compensation for fulltime employment in a 40-hour work week regardless of where the work is performed. * The daily wage represents full compensation for fulltime employment in an 8-hour work day regardless of where the work is performed. The daily rate shall be computed based on the authorized/actual monthly rate for the position divided by 22 days....
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