Compensation and Benefits: Types and Wage Systems
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Questions and Answers

What is the definition of compensation and benefits?

  • Compensation refers to basic payment, while benefits refer to incentives.
  • Compensation encompasses both wages and incentives, while benefits refer to non-statutory benefits only.
  • Compensation and benefits are terms used interchangeably in the context of employee remuneration.
  • Compensation includes all forms of pay and reward, while benefits do not include wages. (correct)

    • What is a remuneration package?

  • A package including time-related wage systems and piece-related wage systems.
  • A package including statutory benefits and non-statutory benefits.
  • A package including basic pay, benefits, and incentives. (correct)
  • A package including wages, rest days, and public holidays.

    • What distinguishes an incentive from basic pay?

  • Basic pay is tied to achieving specific objectives, while incentives are not.
  • Incentives are part of the statutory benefits, while basic pay is non-statutory.
  • Incentives are paid in the form of non-monetary rewards, while basic pay is always monetary.
  • Basic pay consists of fixed monthly payments, while incentives are variable based on performance. (correct)

    • What is the purpose of an incentive scheme?

    <p>To influence employee behavior to achieve pre-determined objectives.</p> Signup and view all the answers

    What does the Employment Act 1955 cover?

    <p>It covers coverage, working hours, public holiday, and rest day for employees.</p> Signup and view all the answers

    What is the purpose of offering non-statutory benefits to employees?

    <p>To provide additional motivation and rewards beyond statutory requirements.</p> Signup and view all the answers

    What is the main objective of the employer according to the text?

    <p>To maximize profits</p> Signup and view all the answers

    Which factor affects individual levels of pay according to the text?

    <p>Company profitability</p> Signup and view all the answers

    What type of system pays workers based on the number of units produced in a given time?

    <p>Piece-work system</p> Signup and view all the answers

    How many days of maternity leave are female employees entitled to for every confinement?

    <p>60 days</p> Signup and view all the answers

    What does section 59 of the Employment Act stipulate?

    <p>Minimum rest day entitlement</p> Signup and view all the answers

    What is the minimum number of paid gazetted public holidays per year entitled to workers under the Employment Act?

    <p>11 days</p> Signup and view all the answers

    According to the Employment Act, how many days of annual leave are employees entitled to if they have worked for more than 5 years?

    <p>16 days</p> Signup and view all the answers

    What does Section 60 of Employment Act entitles the workers to?

    <p>Weekly rest day</p> Signup and view all the answers

    What does the piece-work/piece related system pay workers according to?

    <p>Number of units produced</p> Signup and view all the answers

    Who is entitled to maternity allowance?

    <p>Female employees with more than 5 surviving children and served the employer for at least 90 days before giving birth.</p> Signup and view all the answers

    What is the primary purpose of an incentive scheme?

    <p>To influence behavior to achieve specific pre-determined objectives</p> Signup and view all the answers

    What distinguishes non-statutory benefits from statutorily required benefits?

    <p>Statutorily required benefits are mandated by law</p> Signup and view all the answers

    In the context of compensation, what does the term 'remuneration package' encompass?

    <p>All forms of pay and reward received by employees</p> Signup and view all the answers

    What is the main purpose of a time-related wage system?

    <p>To compensate based on the time spent working</p> Signup and view all the answers

    How are piece-related systems different from time-related wage systems?

    <p>Piece-related systems compensate employees based on output or performance</p> Signup and view all the answers

    What is the purpose of offering benefits to employees, as discussed in the text?

    <p>To attract and retain talented employees</p> Signup and view all the answers

    What is the purpose of statutory benefits?

    <p>To attract and retain employees</p> Signup and view all the answers

    What is the significance of offering non-statutory benefits to employees?

    <p>To improve employee morale</p> Signup and view all the answers

    What does the Employment Act stipulate in Section 59?

    <p>Weekly rest day entitlement for all employees</p> Signup and view all the answers

    Which factor affects individual levels of pay according to the text?

    <p>Degree of skill</p> Signup and view all the answers

    What distinguishes an incentive from basic pay?

    <p>Incentives are related to performance and productivity</p> Signup and view all the answers

    What is the main objective of offering maternity allowance to female employees?

    <p>To have a stable income for the employee</p> Signup and view all the answers

    What does the Employment Act entitle workers to in Section 60?

    <p>Minimum number of paid public holidays per year</p> Signup and view all the answers

    What is the primary goal of employers according to the text?

    <p>To maximize profits</p> Signup and view all the answers

    10

    <p>This one sounding similar option a</p> Signup and view all the answers

    Study Notes

    Compensation and Benefits

    • Compensation refers to all forms of financial returns and tangible benefits that employees receive in exchange for their work.
    • Benefits are non-wage compensations provided to employees, often including health insurance, retirement plans, and paid time off.

    Remuneration Package

    • A remuneration package includes all financial compensation (salary, bonuses) along with benefits (health insurance, retirement plans) offered to an employee.

    Incentives vs. Basic Pay

    • Incentives are variable forms of compensation designed to motivate performance, while basic pay is the fixed amount employees receive regularly.

    Purpose of an Incentive Scheme

    • The primary goal of an incentive scheme is to encourage employees to enhance productivity and achieve specific performance goals.

    Employment Act 1955

    • This act governs employee rights in Malaysia, outlining regulations on wages, benefits, working hours, and leave entitlements.

    Non-Statutory Benefits

    • Offering non-statutory benefits helps improve employee satisfaction, loyalty, and retention beyond what is legally required.

    Main Objective of the Employer

    • Employers aim to create an efficient, motivated workforce while controlling costs and enhancing productivity.

    Factor Affecting Individual Levels of Pay

    • Individual levels of pay can be influenced by various factors, including experience, education, and market demand.

    Piece-Work System

    • A piece-work system pays workers based on the quantity of units produced within a specified time frame.

    Maternity Leave Entitlement

    • Female employees are entitled to 60 days of maternity leave for each confinement.

    Section 59 of the Employment Act

    • This section stipulates the entitlement to maternity leave and the corresponding allowances.

    Gazetted Public Holidays

    • Workers are entitled to a minimum of 11 paid gazetted public holidays per year under the Employment Act.

    Annual Leave Entitlement

    • Employees with more than 5 years of service are entitled to 18 days of annual leave.

    Section 60 of the Employment Act

    • This section outlines employee rights regarding retrenchment benefits and conditions for termination.
    • Workers in a piece-related system are compensated based on the number of units they successfully produce.

    Maternity Allowance Eligibility

    • Female employees who satisfy specific conditions as outlined in the Employment Act are entitled to maternity allowance.

    Primary Purpose of Incentive Scheme

    • The primary purpose is to boost employee performance, driving higher productivity and organizational success.

    Non-Statutory vs. Statutory Benefits

    • Non-statutory benefits exceed the legal minimum requirements and are not mandated by law, whereas statutory benefits are legally required protections for workers.

    Remuneration Package Context

    • In the context of compensation, a remuneration package encompasses salary, bonuses, benefits, and other forms of financial returns.
    • The main purpose of a time-related wage system is to reward employees for the time they dedicate to work, ensuring regular income.
    • Piece-related systems focus on output quantity, while time-related systems compensate based on hours worked, regardless of output volume.

    Purpose of Offering Benefits

    • Offering benefits enhances job satisfaction, attracts talent, and supports overall employee wellness and productivity.

    Purpose of Statutory Benefits

    • Statutory benefits are designed to ensure that employees receive minimum protections and entitlements under employment laws.

    Significance of Non-Statutory Benefits

    • Non-statutory benefits are significant for enhancing workplace culture, employee engagement, and competitive advantage in talent acquisition.

    Section 59 Details

    • Section 59 details the maternity leave provision and the requirements for receiving maternity allowance.

    Incentives vs. Basic Pay (Reiteration)

    • Incentives provide motivation and performance rewards, contrasting with basic pay that remains constant.

    Maternity Allowance Objective

    • The objective of maternity allowance is to provide financial support to new mothers during their leave.

    Section 60 Employee Rights

    • Section 60 outlines rights concerning termination and severance, protecting employees from unfair dismissal.

    Primary Goal of Employers

    • The primary goal is to maintain productivity and profitability while fostering a positive work environment for employees.

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    Description

    This quiz covers the different types of payment structures, including basic pay, benefits, and incentives, as well as the wage systems currently in use. It also explores the reasons why employers offer benefits to employees and the statutorily required benefits such as those under the Employment Act 1955.

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