Recruitment and Selection in Human Resource Management PDF

RECRUITMENT AND SELECTION Labor Laws – the social and political environment of the market, created by the central and state Human Resource Management – How people are government. employed and managed in an...

RECRUITMENT AND SELECTION Labor Laws – the social and political environment of the market, created by the central and state Human Resource Management – How people are government. employed and managed in an organization. Legal Considerations – job reservations for different 4 Main activities of HRM: castes, gives positive or negative impact on 1. Acquisition recruitment policies of the organization. 2. Development Competitors – organizations in the same industry are 3. Motivation competing for the best resources. A need to analyze 4. Maintenance of Human Resources and make provision of the resource packages that are Recruitment – process of identifying, screening, finest in terms of the industry standard. shortlisting, and hiring of the potential human Equal Opportunity - equal employment resources for the purpose of filling up the positions opportunities for the individuals. within the organizations. (Positive process: Attracting many candidates) Process of Recruitment and Selection Process of Attracting, Selecting, and Job Posting – publicizing and displaying Appointing potential candidates. advertisements of an open job to the employees (Internet, newspapers, notices, bulletin boards) Selection – deciding which candidates/applicants should be appointed to the position/job. (Negative Job Vacancy - when vacancy arises in the process: elimination of candidates) organization, they should get filled with capable employees. Sources of Recruitment: Job Analysis - foundation of job description and job Internal Sources - recruitment from within the specification. The procedure through which you company. The various internal sources are determine the duties of the positions and the promotion, transfer, past employees and internal characteristics of people to hire them. advertisements. Screening Candidates – to narrow down the field. External Sources - refers to the practice of getting suitable persons from outside. Screening – the process of choosing a qualified person for a specific role who can Examples: Casual caller/Unsolicited successfully deliver valuable contributions to the Applications, Media Advertisement, organization. Employment Agencies, Management Consultants, Educational Multistage Selection Strategy – a number of Institutions/Campus Recruitment, assessment tools as part of the process. The Recommendations, Labor Contractors, human resources department is responsible Telecasting for validating each assessment tool and ensuring that it is legitimately related to the Pros: Qualified Personnel, Wider Choices, requirements of the open position. Examples Fresh Talent, Competitive Spirit. of different stages in a multistage selection Cons: Dissatisfaction among existing staffs, strategy: a. Personality tests b. Skills tests c. lengthy process, costly process, uncertain Interview and sample work performance response. Compensatory Selection Strategy – Internal Factors: administer all assessment tools to applicant at the same time. Size of Organization – most important factor affecting the recruitment process. Employee Evaluation - monitoring the performance of the employees is an important aspect within the Recruitment Policy – includes hiring from internal organization. and external sources of organization. Types of Interviews Image of Organization – having a positive image in the market can easily attract good candidates. Interview - oral examination of candidates for employment. Most common and core method of Image of Jobs – contributes a critical role in the obtaining information from job seekers. recruitment and selection process. Having a positive image in terms of remuneration, promotion, 1. Structured Interview – the interview is recognition, and amiable working environment. planned, designed and detailed in advance; pre-planned, precise, and reliable in hiring External Factors: the candidates Demographic Factors – characteristics of potential 2. Unstructured Interview – the unexpected employees (age, religion, educational qualifications, one, where the interview questionnaire is not gender, occupation, economic status, and place of prepared location) 3. Group Interview – all candidates or a group Labor Market – demand and supply of labor. of candidates are interviewed together Unemployment rate – high rate of 4. Depth Interview – semi-structured interview unemployment=hiring of human resources will be where the candidates have to give detailed simple and manageable (Increase of applicants)  information about their education Level 3: Behavior - At this level, you evaluate qualifications, work experience, special how far your trainees have changed their interests, skills, aptitude and so forth. behavior; based on the training they received. Specifically, this looks at how trainees apply 5. Stress Interview – conducted to ascertain the information. how a candidate would react during the time of stress and cope up with problems Level 4: Results - At this level, you analyze the final results of your training. This includes 6. Individual Interview – one to one basis; outcomes that you or your organization have interviewer and candidate determined to be good for business, good for 7. Informal interview – conducted in an the employees, or good for the bottom line. informal way, example is the interview will be Development - Refers to formal education, job stable without any written communication experiences, relationships and assessment of and can be arranged at any place personality and abilities that help employees prepare 8. Formal interview – is organized in a formal for the future manner, the candidate will be aware about Employee Development – Is a key contributor to a the dates and timings of the interview well in company’s competitive advantage by helping advance and the interviewer plans and employees understand their strength, weaknesses prepares the questions for the interview and interests and by showing them how new jobs and 9. Panel interview – is being conducted by a expanded job responsibilities are available to them to group of people interviewing one candidate meet their personal growth needs. 10. Exit interview – conducted for those The following methods are generally used to provide employees who want to leave the training: organization; to ascertain the reasons behind leaving the job On-The-Job Training – (Training on the job and workplace) get training under the same working LEARNING AND DEVELOPMENT conditions and environment and with the same Human Resources Development (HRD) – focuses materials, machines and equipment’s that he will be on both training employees for their current jobs and using ultimately after completing the training. This development of skills for their future roles and follows the most effective methods of training the responsibilities. operative personnel and generally used in most of the individual undertaking. Includes: Training for managers, supervisors, teams, tuition reimbursement programs, Job Experience - learning by experience cannot and customer service training, performance should not be eliminated as a method of management, harassment prevention development, though as a sole approach; it is a training, 360-degree reviews, career wasteful, time consuming and inefficient. In some coaching. cases, this method bas proved to be very efficient though it should be followed by other training Developing an Effective Employee Training methods to make it more meaningful. Program Defining needs, goals and objectives - Training (a Coaching - a superior gives training to a subordinate performance improvement tool) is needed when as his understudy like an assistant to a manager or employees are not performing up to a certain director. Direct personnel instruction and guidance, standard or at an expected level of performance. A usually with extensive demonstration. successful training needs analysis will identify those who need training and what kind of training is Job Rotation - If a trainee is rotated periodically from needed. It is counterproductive to offer training to one job to another job, he acquires a general individuals who do not need it or to offer the wrong background. The main advantages are: it provides a kind of training. A Training Needs Analysis helps to general background to the trainee, training takes put the training resources to good use. place in actual situation, competition can be stimulated among the rotating trainees, and it Define short- and long-term goals of training stimulates a more cooperative attitude by exposing a man to other fellow problem and view-points. Develop individual training modules Implementation of the Training Program Apprenticeship - Under this method, the trainee is placed under a qualified supervisor or instructor for a Evaluate Training Results long period of time depending upon the job and skill Level 1: Reaction - This level measures how required. Wages paid to the trainee are much less your trainees (the people being trained), than those paid to qualified workers. This type of reacted to the training. training is suitable in profession, trades, crafts and technical areas like fitter, turner, electrician, Level 2: Learning - At level 2, you measure welders, carpenters etc. what your trainees have learned. How much has their knowledge increased as a result of Mentoring – Specially selected and trained the training? individuals to provide guidance, pragmatic advice, and continuing support that will help the person(s) allocated to them learn and develop. Process of Learning and Development Workflow Analysis – flow of work from job to job in a work process. Learn from themselves and other people (Social Learning) Process Charts - shows the flow of inputs to and outputs from a particular job. Mainly doing by instructions (Experiential Learning) Business Process Reengineering – redesigning business processes. Discretionary Learning (Self direction) Job Enlargement – assigning workers additional Learning Theories same-level activities. Reinforcement Theory – changes in behavior take Job Rotation – moving workers from one job to place as a result of an individual’s response to events another. or stimuli (rewards/punishment) Job Enrichment – redesigning jobs in a way that Cognitive Learning Theory – gaining knowledge and increases the opportunities for the worker to understanding by absorbing information in the form experience feelings of responsibility, achievement, of principles, concepts, and facts, then internalizing growth, and recognition. it. Frederick Herzberg: “the best way to motivate workers is to build opportunities for challenge Experiential Learning Theory – Learning from and achievement into their jobs via job experience. enrichment” Social Learning Theory - Learning from social Steps in Job Analysis Process interactions. 1. Decide how you will use the information ADDIE Model – Analysis, Design, Development, 2. Review relevant background information Implementation, Evaluation. about the job such as Organization Charts and Process Charts JOB ANALYSIS AND TALENT MANAGEMENT 3. Select Representative positions 4. Actual analyze the job – requires collecting Talent Management - The holistic, integrated and data about job activities, required employee results and goal-oriented process of planning, behaviors recruiting, selecting, developing, managing, and 5. Verify the job analysis information with the compensating employees. worker performing the job and with the immediate supervisor Job Analysis – Process of determining the duties of a 6. Develop a Job description and Job specific job and the characteristics of the people specification who would be most appropriate for the job; produces the necessary information to develop job Position Analysis Questionnaire – collecting job descriptions and job specifications. analysis information such as duties and responsibilities of various jobs. Job Description - specific duties, skills and training needed (job title, summary, essential Job Analysis Interviews Address Subjects functions, qualifications, reporting relationships) 1. Job’s major duties 2. Hazardous conditions Job Specification – list of human 3. Performance standards requirements that is the requisite education, 4. Required experience skills, personality, and so on. 5. Education -The interviewer is less likely to ask an employee question that are not Types of Information most likely to be collected by an related specifically to the job (e.g., Personal HR Specialist through job analysis: questions, worker’s hobbies) 1. Work activities Structured list: also called checklist is useful for 2. Human behaviors guiding an interview or performing a personal 3. Performance standards observation 4. Job Context 5. Human requirements Electronic diaries: are completed by the worker and would not use for observations or interviews Job Context – refers to the broader environment or conditions in which a job is performed. (Work Reactivity: occurs when a worker changes what environment, organizational culture, relationships he/she normally does because observation is taking with coworkers and supervisors, tools and place for the purpose of job analysis equipment used) Work cycle: a time it takes to complete a job Compensation – form of salaries and bonuses depends upon a job’s required skills, educational Interview: data collection methos is most frequently level, safety hazard, and level of responsibility. used in conjunction with direct observation Organization Charts – division of work within the Logbook: a diary or log requires workers to make firm with titles of each position. daily listings of the activities in which they engage as well as the amount of time each activity takes Observation: an appropriate method for collecting Upward Feedback – the process of allowing job analysis information when a job involves physical subordinates to rate their supervisor’s performance rather than mental activities anonymously; the typical result is the managers improve their performance Important Work Behavior 360-degree Feedback – refers to a performance a. Industriousness appraisal based on surveys from peers, supervisors, b. Thoroughness subordinates, and customers; the ratings are c. Schedule flexibility collected ‘all around’ an employee d. Attendance Graphic rating scale – simplest and most popular Job description sections technique for appraising employee performance; a. Job Identification – Job Title lists traits = quality and reliability, or teamwork; also b. Job Summary range of performance values c. Responsibilities and Duties Paired Comparison Method – involves making d. Authority of incumbent comparisons of employees with their co-workers e. Standards of performance f. Working conditions Alternation ranking method – involves ranking g. Job Specifications employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked; Competency based job analysis: A worker-focused most popular method for ranking employees describing a job in terms of measurable, observable, behavioral competencies that an employee doing the Forced Distribution – an appraisal tool is being used job must exhibit to do the job well. (Focuses on the when a supervisor places predetermined behavior of the workers) percentages of appraisees into various performance categories; similar to grading on a curve Traditional job analysis: a job-focused describing the jobs in terms of duties and responsibilities Critical incident method – require a supervisor to (Focuses on the duties of the job) maintain a log of positive and negative examples of subordinate’s work-related behavior PERFORMANCE MANAGEMENT AND APPRAISAL Behaviorally Anchored Rating Scale (BARS) – an Performance Appraisal – process of evaluating an appraisal method that aims at combining the employee’s current and/or past performance relative benefits of narrative critical incidents and quantified to his/her performance standards. The purpose is to scales by assigning scale points with specific remove any performance deficiencies. examples of good or poor performance; combination of narrative critical incidents and quantified Goals of Performance Appraisal (SMART): performance scales S - Specific Steps In Developing Bars (Behavioral Anchored M – Measurable Rating Scale) A – Attainable Write critical incidents Develop performance dimensions R – Relevant Reallocate incidents T – Timely Scale the incidents Develop a final instrument Steps In Performance Appraisal Mix standard scales – the aim is to reduce rating a. Setting work standards errors such as leniency, by making it less obvious, to b. Assessing the employee’s actual the supervisor performance relative to those standards Management by objective (MBO) – setting specific c. Providing feedback to the employee measurable goals with each employee and then periodically reviewing the progress made Employee’s direct supervisor – primarily responsible for appraising an employee’s GRAPHIC RATING SCALES’ COMMON PROBLEMS performance Unclear standards – refers to an appraisal Supervisors – they are the one who conduct an that is too open to interpretation actual appraisal; they are the heart of most Halo effect – occurs when a supervisor’s appraisals rating of a subordinate on one trait biases the rating of that person on other traits; HR Department – monitors the performance “influence of a rater’s general impression on appraisal system but not involved in rating ratings of specific ratee qualities” employees Central tendency – refers to rating all Rating committee – usually consists of employee’s employees an average immediate supervisor and 4 or 5 supervisors Leniency – supervisors giving all of their subordinates consistently high ratings Employees rating themselves = rates higher than Strictness – supervisors giving all of their they are rated by supervisors/peer (in Asia; subordinates consistently low ratings employees tend to rate themselves lower than they are rated by their supervisors/peer)  Bias – the tendency to allow individual their normal work schedules, or for the expenses differences to affect the appraisal ratings that related to their jobs. employees receive Incentives Payment – funds the employees receive Recency effect – focusing on the most for meeting performance, output goals, seniority and recent behavior of an employee rather than merit pay. his/her performance over a year Benefits and Services – Includes paid time off, To reduce central tendency error = rank employees health insurance, pension, profit sharing programs, To reduce leniency/strictness error = enforcing a company cars, fitness dub memberships, childcare performance distribution; also ranking employees services, tuition reimbursement. Appraisal Interview – making plans to correct 3 Legally required benefits: employee weaknesses - Social Security Performance Management – continuous process of - Workers’ compensation identifying, measuring, and developing the - Unemployment compensation performance of individuals and teams Pension and Retirement Plans Direction sharing – communicating the company’s - Defined-benefit plans – employer higher-level goals throughout the company promises a fixed pension level. Goal alignment – a process in place that allows any - Defined-contribution plans – specify the manager to see the link between employee’s goals amount an employer will set aside in an and those of the department and organization investment fund for the benefit of each employee. Ongoing feedback – includes face-to-face and computer-based feedback regarding progress toward Benefits – indirect financial and nonfinancial goals payments employees receive for continuing their employment with a company. Coaching and developmental support – an integral part of feedback process Supplemental Pay Benefits – benefits for time not worked. (Unemployment insurance, vacation, Rewards, recognition, and compensation – provide holiday pay, sick pay) the consequences necessary to keep employee performance on target Sick Leave – provides pay to an employee when she/he is temporarily out because of an illness. COMPENSATION, WAGE, SALARY ADMINISTRATION, AND BENEFITS Severance Pay – humanitarian gesture, reduces litigation from disgruntled former employees. Compensation Plan (CP) – Under RA No. 6758 – an orderly scheme for determining rates of Workers’ Compensation – provides income and compensation of government personnel. Crafted to medical benefits to employment – relate accident attracts, motivate, and retain good and qualified victims or their dependents. people to accomplish the Philippine Government’s Case Management – method used by employers to mission and mandates to encourage personal and save money in workers’ compensation claims. career growth and to reward good performance and length of service. Pension Plans – financial programs that provide income to retiring individuals. Components: Basic pay/Salaries, Fringe Benefits, Incentives, Non-financial rewards. Flextime – work schedule in which employees’ workdays are built around a core of midday hours Compensation Administration – a segment of management or human resource management Compressed workweek – working fewer but longer focusing on planning, organizing, and controlling the days each week direct and indirect payments employees receive for the work they perform. Job sharing – allows 2 or more people to share single full-time job Basic Components: Work sharing – a temporary reduction in work hours Basic Pay – the cash that an employer pays for the by a group of employees during economic downturns work performed. to prevent layoff Wages – hourly rate of pay regulated by the Components of reward system Labor Standards of the DOLE together with National Wages and Productivity Committee. a. Direct base pay – a fixed salary or wage Salaries – paid to managers and b. Pay progression – may be related to age or length professionals, annual or monthly of service, or performance-related criteria calculations of pay that usually have less c. Performance/variable pay – pay directly linked to relation to hours worked. work-related behavior such as performance or Wage and Salary Add-ons – Cost-of-Living attainments. Adjustments, overtime, holiday, other premium There are various types of variable pay wages, travel and apparel/clothing allowances. To compensate employees for work above and beyond - Payment by results – pay directly to the quantity of output produced by the individual  or team; pay by piecework, commission, or Days: output or target-based bonuses Monthly-Paid Employees: 365 days Daily-Paid Employees: - Performance-related pay – offering a. Work also on Sundays, rest days, special additional payments for individual or team days, regular holidays: 395 days performance according to the range of b. No work on Sundays or Rest days: 313 possible performance criteria days. - Organization performance pay – based on c. No work on Saturdays, Sunday, Rest day: the profitability of the firm 261 days - Indirect pay or benefits – non-cash items Holiday Pay (Article 94) or services Refers to the payment of the regular daily wage for WORKERS STATUTORY MONETARY BENEFITS any unworked holiday. (Wage is twice, 200%) Batas Kasambahay – They have a rights and benefits for minimum wage; mandatory benefits; service Rates: incentive leave; 13th month pay; Coverage under SSS, Non-Agriculture: 610.00 (610.00 x 200% = 1,220) Pag-IBIG, PhilHealth; Access to Education BMBEs – Barangay Micro Business Enterprises; total Retail and Service Establishments regularly employing less than 10 months: not covered. asset of 3 million pesos shall exempt from the coverage of the Minimum Wage Law, provided that all Premium Pay (Article 91-93): when holiday falls on employees are still entitled to the same benefits the rest day of the employee, added 30%, equivalent given to the regular employees (SSS and Healthcare to 260%. benefits) Work performed on rest days or on special days: Negosyo Center in the City/Municipality – shall 130% have the sole power to issue the Certificate of Authority for BMBEs Work performed on rest days which is also a special day: 150% Minimum Wage for Workers Paid by Results – All workers paid by results shall not less than the Work performed on a regular holiday and also the prescribed minimum wage rates; for normal working employee’s rest day: 260% which shall not exceed 8 hours a day Who are not covered for Holiday Pay: Minimum Wage of Apprentices and Learners – shall not be less than 75% of the applicable minimum 1. Government Employees wage rates 2. Retail and service establishments regularly employing less than 10 workers Persons with Disabilities – shall be subject to the 3. Kasambahay and in Personal service of same terms and conditions, benefits, and another compensation as a qualified able-bodied person. 4. Managerial employees Income Tax of Minimum Wage Earners – below 5. Officers or members of a managerial staff 250,000 pesos annual gross compensation shall be 6. Field personnel and other employees exempted from paying income taxes. whose time and performance are unsupervised by the employer, including Minimum Wage – Republic Act No. 6727 “Wage those who are engaged on Rationalization Act” Overtime Pay (Article 87) Implementation in Agriculture, Retail Establishment, Service Establishment. Rates: Rates: Regular Day work excessing 8 hours: Daily Rate Sector/Current Minimum/New Wage divided by 8 hours and multiplied by 125% and Increase/New Minimum wage multiplied by number of hours OT work Non-agriculture: 570.00 / 40.00 / 610.00 Example: 610/8 x 125% = 76.75 x 125 x Agriculture: 533.00 / 40.00 / 573.00 5hours(example) = 479.69 Service/Retail Establishments: same above Overtime work performed on scheduled rest or special day, 30%, (130%) Manufacturing Establishments same above Computation of the Estimated Equivalent Monthly OT work performed on a special day which falls on Rate (EEMR) of Monthly-Paid and Daily-Paid a scheduled rest day, 30%, (130%) Employment Retail/Service Establishment, not covered by Formula: holiday pay rule: Applicate Daily Rate x Days of Work = EEMR 12 Months  OT work performed on regular holiday, service that may be used for sick, vacation, and other (Article 94), (130%). Example: 610/8 x 200% x leave purposes. 130% x number of hours OT Work. Maternity Leave (RA 8282, amended by RA 11210) OT work performed on regular holiday Maternity leave refers to the paid leave granted to a which falls on a scheduled rest day, female employee for every instance of pregnancy, (Article 94), (130%). Example: 610/8 x 260% x 130% x number of hours OT Work. miscarriage, and emergency termination of pregnancy. Night Shift Differential (Article 86) The maternity leave shall be for 105 days with Additional compensation of 10% of regular wage full pay, and additional 15 days with full pay in when work between 10pm to 6am. case the female employee qualifies as a solo parent. Example: 610/8 x *110% x number of hours worked. 76.25 x 110% x 5 hours = 419.38 In cases of live childbirth, an additional maternity leave of thirty (30) days without pay, can be availed of, at the option of the female employee. In case of miscarriage or emergency termination of pregnancy, the maternity leave shall be for sixty (60) days with full pay. Paternity Leave (RA 8187) Paid leave granted to a married male employee allowing him to lend support to his lawful wife during her period of recovery and/or in nursing of their newborn child, including miscarriage. The paternity leave grants male employees his full pay for the seven (7) days during which he is allowed not to report for work. Paternity leave benefit shall apply to the first four (4) deliveries of the employee’s lawful wife with whom he is cohabiting. Parental Leave for Solo Parents (RA 8971, amended by RA 11861) Refers to the paid leave granted to a qualified solo parent to enable the performance of parental duties and responsibilities where physical presence is required or beneficial to the child. It is granted to any solo parent or individual who is left alone with the responsibility of parenthood due to the ff: 1. Giving birth as a result of rape 2. Death of spouse 3. Spouse is detained or serving sentence Service Charge (Article 96, amended by RA No. for a criminal conviction for at least 1 year 11360) 4. Physical and/or mental incapacity of Refer to the amount collected by establishments, spouse as certified by a public medical such as hotels, restaurants and other similar practitioner 5. Legal separation from spouse for at least establishments, that is added to the bills for work or 1 year services rendered. 6. Declaration of nullity or annulment of The service charges collected shall be distributed marriage and paid to the covered employees once every two 7. Abandonment of spouse for at least 1 (2) weeks or twice a month at intervals not exceeding year sixteen (16) days. 8. Unmarried mother/father 9. Any other person who solely provides Service Incentive Leave (Article 95) parental care and support to a child or children Refers to the paid leave of five (5) days granted to an 10. Any family member who assumes employee who has rendered at least one (1) year of responsibility of the head of family The parental leave shall be 7 workdays every year. Thus, “one-half month salary” is equivalent to 22.5 days. Leave For Victims of Violence Against Women and Their Children (VAWC) (RA 9262) The COLA shall not be included in the computation of retirement pay. Leave for victims of violence against women and their Formula: children refers to the paid leave granted to a female employee who is a victim of violence against women Minimum Retirement Pay = Daily Rate x 22.5 days x # and their children. of years in service. VAWC, as used in RA9262, “refers to any act or a Employees’ Compensation Program (PD 626) series of acts committed by any person against a A government program that provides a package of woman who is his wife, former wife, or against a benefits to all workers and/or their beneficiaries in woman with whom the person has or had a sexual or the event of a work-related sickness, injury, disability dating relationship, or with whom he has a common or death. child, or against her child whether legitimate or illegitimate, within or without the family abode, which PHILHEALTH Benefits (RA 7875, as amended by RA result in or is likely to result in physical, sexual, 9241 and RA 10606) psychological harm or suffering, or economic abuse National Health Insurance Program - A compulsory including threats of such acts, battery, assault, health insurance program of the government coercion, harassment or arbitrary deprivation of established to provide universal health insurance liberty.” coverage and ensure affordable, acceptable, The qualified victim-employee shall be entitled to available and accessible health care services for all leave up to ten (10) days with full pay. citizens of the Philippines. Social Security Benefits (RA 1161, as amended by Special Leave for Women (RA 9710) RA 11199) Refers to the paid leave granted to a female Benefits composed of package of benefits under the employee allowing her to recuperate following Social Security Program in the event of death, surgery caused by gynecological disorders for a disability, sickness, maternity, old age and period of up to two (2) months. unemployment. Work-related death, disability and sickness also receive benefits under the Employees' Thirteenth-Month Pay (PD 851) Compensation (EC) Programs. Basically, social security provides replacement for income lost on Refers to one-twelfth of the total basic salary earned account of the aforementioned contingencies. by an employee within a calendar. Sickness Benefit: A daily cash allowance paid for Formula: the number of days a member is unable to work due Daily rate x Days worked = 13th-month pay to sickness or injury; granted up to a maximum of 120 12 months days in a calendar year 610 x 365 = 18,554.17 Maternity Benefit: 105 days of benefit with full pay 12 months and additional 15 for solo parents; Disability: For permanently disabled, either partial or Separation Pay (Articles 298-299) total. A compensation given to an employee who is Months for permanent partial disability terminated from employment due to authorized causes. one thumb - 10 sight of one eye - 25 The computation of separation pay of an employee one big toe - 6 shall be based on his/her latest salary rate. one index finger - 8 Retirement Pay (Article 302) hearing of one ear - 10 one hand - 39 Compensation given to a retiring employee. one middle finger - 6 Employees shall be retired upon reaching the age of hearing of both ears - 50 sixty (60) years or more but not beyond sixty-five (65) one arm - 50 years old [and have served the establishment for at one ring finger - 5 least five (5) years]. one foot - 31 For the purpose of computing retirement pay, one ear - 10 "one-half month salary" shall include all of one little finger - 3 the following: one leg - 46 both ears – 20 1. Fifteen (15) days salary based on the latest salary rate; Disability Benefits 2. Cash equivalent of five (5) days of service 1. Monthly pension is pa id to a disabled member incentive leave; and who has paid at least 36 monthly contributions to the SSS; or 3. One-twelfth (1/12) or 2.5 days of the thirteenth-month pay. 2. Lump sum amount is granted to those with less than 36 monthly contributions. Retirement: A cash benefit granted to the employee who are no longer working due to old age A member who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement Pag-Ibig Benefits (RA 9679) Provides the Filipino workers access to a secured savings and affordable home financing to improve the quality of their lives. Employment shares on Monthly Contribution 1,500 and below = for Employee is 1%; for Employer is 2% Over 1,500 = for Employee is 2%; for Employer is 2%