Compensation and Benefits Overview

Study Notes

Compensation is a structured system for providing monetary payment to employees in return for their work performance.
Benefits are additional payments from employers beyond wages and salaries.
Wages and salaries are a form of compensation paid by employers to employees.
Incentives are monetary plans to motivate and recognize employee performance; sales bonuses are a typical example.
Comparable worth is a legal principle ensuring equal pay for jobs requiring equal skills, responsibilities, and effort, regardless of gender.
A benefits program is part of a firm's compensation system, providing additional benefits like worker's compensation, holiday pay, insurance, health, life, disability insurance, and legal services.

Listen to and follow teacher instructions.
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Applies to private enterprises, government service, and government-owned corporations.
Covers agriculture, industry, trade, religious, charitable, and educational organizations.
Normal working hours not to exceed eight hours daily, excluding emergency situations
Right to overtime pay for extra hours of work.
Right to night shift differential pay.
Right not to work on rest days (unless for emergency).
Right to additional compensation for rest days/holidays.
Right to holiday pay (regular holiday vs. special).
Right to service incentive leave.
Businesses in certain sectors are restricted from paying employees. Payments go to heirs in situations without a will.
Normal working hours for employees are from the time they are expected to report to work, the time they are expected to work, and end time at their designated places of work.
Meal and rest periods are at least one hour, but may be shortened in special circumstances (non-manual labor, emergencies, preventing perishable goods loss).

Employees who work beyond eight hours on an ordinary working day receive overtime at 25% of their regular wage.
On designated rest days, compensation is at least 30% of the regular wage.
Working beyond 8 hours on a rest day includes an additional eight hours of work plus 30% of the wage amount.
Special holidays use the same rules as regular days, applying similar additional compensation for the first three hours of holiday work.

Managerial employees are not entitled to overtime pay for work beyond eight hours.
Supervisory employees fall under the managerial staff and are not entitled to overtime, rest day, or holiday pay.

Write a half-page essay on the importance of studying compensation and benefits.

How can understanding compensation and benefits (salary, health insurance, retirement contributions, paid time off) help people make better budget, future and life balance choices?
Considering what has been discussed, why is learning about compensation and benefits important?