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COMPENSATION MANAGEMENT BENEFITS

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Intro to Compensation
banking sector: union bank of India Its compensation mngt KPO sector: RBS

Its compensation mngt

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INTRODUCTION

Compensation is payment to an employee in return for their contribution to the organization. The most common forms of compensation are wages, salaries and tips.

Compensation is usually provided as base pay and/or variable pay. Base pay is based on the role in the organization and the market. Variable pay is based on the performance of the person in that role. Incentive plans ,bonus plans, are a form of variable pay.

BENEFITS:
Benefits are forms of value, other than payment, that are provided to the employee in return for their contribution to the organization

For e.g: retirement plans, health life insurance, life insurance , incentives,gift vouchers, vacation, employee stock ownership plans etc..

Components:

1
2 3 4

Basic wages/Salaries
Dearness allowance Bonus Fringe benefits

5 Reimbursement/ allowances etc...


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Study of Compensation and benefits on:


Sectors & companies

BANK SECTOR

KPO SECTOR

UNION BANK OF INDIA

ROYAL BANK OF SCOTLAND

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Union Bank Of India (banking sector)

UNION BANK OF INDIA: Union Bank Of India was Inaugurated by father of the Nation that is MAHATMA GANDHI at the onset of 20th century. Union Bank of India has traversed the long road of successful Banking of 90 years.

Union Bank has ensured complete customer delight, living up to its image of, GOOD PEOPLE TO BANK WITH.

FACTS AND FIGURES: Union Bank's unique family of about 26,000 qualified / skilled employees. Union Bank is a Public Sector Unit with 55.43% Share Capital held by the Government of India. The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and Follow on Public Offer (FPO) in February 2006.

VISION:

TO BECOME THE BANK OF FIRST CHOICE IN OUR CHOSEN AREA BY BUILDING BENEFICIAL AND LASTING RELATIONSHIP WITH CUSTOMERS THROUGH A PROCESS OF CONTINUOUS IMPROVEMENT.

SCALE BASED PAY of Bank :


SCALE SALARY RANGE FROM UPTO..

JMGS-I
MMGS-II MMGS-III SMGS-IV SMGS-V TEG-VI TEG-VI

Rs.14, 500/Rs.19, 400 Rs.25, 700/Rs.30, 600/ Rs.36, 200/-

Rs.31, 500/-@
Rs.34, 200/-@ Rs.35, 100/-@ Rs.36, 200/Rs.40, 400/Rs.46,800/Rs.52,000/-

Rs.42,000/ Rs.46,800/

Salary Components of Bank Basic Salary, Dearness Allowance (DA), House Rent Allowance (HRA), City Compensatory Allowance (CCA). NO HRA for those officers who are residing in banks accommodation 15 % HRA If officer have own house and not availing banks accommodation.

DEARNESS ALLOWANCE to Bank PO For every 4 points rise/fall in index, Dearness Allowance at 0.15% per slab. CITY COMPENSATARY ALLOWANCE CCA rates are as under: Places in Area I - 4% of Basic Pay, Max. Rs.540/-p.m. Places with population of more than 5 lacs 3% of Basic Pay, Max. Rs.375/-p.m.

HOUSE RENT ALLOWANCE We have retained the existing rate of HRA as under: Major A class cities 8.5% Other places in Area I - 7.5% Other places 6.5% MEDICAL AID the medical aid has been enhanced as; Scale I to III Rs. 5100/- p.a. Scale IV & above Rs. 6320/- p.a.

Serving Employee

Inquiry Officers-A minimum of Rs.1000/and a maximum Of Rs.2000/-

Presenting Officers-A minimum of Rs. 500 and a Maximum of Rs. 1,000 per inquiry.

SALARY STRUCTURE:
Salary Basic Salary Major A class cities : Metro Cities Rs.14500.00

Other places in Area I(State Capitals etc)


Rs.14500.00

Other places (District level and Rural Places) Rs.14500.00

Dearness Allowance (54%)

Rs.7830.00

Rs.7830.00

Rs.7830.00

CCA(4% max Rs.540=)

Rs. 540.00

Rs.375.00

nil

HRA (Major A class cities 8.5%, Other places in Area I 7.5%, Other places - 6.5%)

Rs.1232.50

Rs.1087.50

Rs.942.50

Total

Rs.24,102.50

Rs. 23,792.50

Rs.23,272.50

Salary

cities : Metro Cities BANK PERK

Category C CatA Centers places Centers(State Category B AND FACILITIES TO PO: : Capitals etc) Centers
Rs.5,300.00 Rs.3,800.00 Rs.2,800.00

Basic Salary Rs.7,200.00

Leased House Rent

Rs.3,000.00

Rs.3,000.00

Rs.2,700.00

Rs.2,300.00

Travelling Allowance

Rs. 250.00

Rs. 250.00

Rs. 250.00

Rs. 250.00

News Paper

Rs.600.00

Rs.600.00

Rs.600.00

Rs.600.00

Cleaning Materials

Rs.300.00

Rs.300.00

Rs.300.00

Rs.300.00

Business Development Expenses

Rs.450.00

Rs.450.00

Rs.450.00

Rs.450.00

Medical Aid

Rs.11,800.00

Rs. 9,900.00

Rs.9,400.00

Rs.6,700.00

OTHER ROLES OF HR

Allowances: Leaves: Welfare schemes: Pension:

ALLOWANCES

Travelling and halting Officiating allowances Canteen subsidies Petrol allowance- Fuel:-

Closing allowance Deputation allowance -

equal to 6% office pay 100/- Per month, 2 wheeler- 15 liter of petrol 4 wheeler 25 liter of petrol Rs 250/@ rate of 7.75% of pay with maximum of rs.2300/-

Medical:-

75% of total expense to fmly 100% to employee

Leaves (holidays) Casual leave Privilege leave Sick leave Special sick leave Maternity leave. Extra leaves (others)

Kind of leave
Casual leave Privilege leave

Entitlement
12 working days in a year One day for every 11 days of service on duty. 30 days for each completed year of service subject to a maximum of 18 months during the entire service. Max. 3 months Max for 12 months during the entire period of service. 1 day Max. up to 15 days in a year Max.30 days in a year.

Sick leave

LEAVES
special sick leave Maternity leave Special casual leave for blood donation For physically handicapped employees For participating in

Welfare schemes:

A. Reimbursement of expenses incurred for Medical check up by the eligible employees / spouse.
B.)Assistance to legal heirs of employees who die in harness. C.)Reimbursement of Dental Surgery expenses D.)

D.)Holiday homes: (entertainment)

Royal Bank Of Scotland (KPO sector)

Introduction: In 300 years, The Royal Bank of Scotland Group has grown to become one of the largest financial services groups in the world. In 2007, it expanded across the globe through the purchase of several parts of the Dutch bank, ABN AMRO, including their businesses in India.

The Group serves a variety of medium to large enterprises, including multi-national corporations (MNC) and financial institutions. All the international transactions that are made in U.S , scotland and netherland are handled (by being middle financial operator ) by (RBS) KPO in INDIA.

Salary components of RBS:


BASE: Basic pay. Statutory bonus.- as per payment of bonus act. RETIRALS: PF - 12% of basic pay. RBS FLEXIBLE ELEMENTS: HRA- upto 50% of basic Meal vouchers Travel and recreation. Medical

Club membership Telephone reimbursement. (summation of above is total fix pay) INSURANCE PREMIUM: Life insurance premium Accident insurance premium Mediclaim for hospitalization. GRATUITY One months basic salary per year til service completion

Retirment age is 60

COMPENSATION PACKAGE CTC (Cost to the Company) consists of three major following components: Basic: Basic rate determine as 40% of CTC amount. Retirement benefit: 12% of Basic rate (PF employers contribution ) Flexible benefit pay.

FBP: (Flexible Benefit Pay) i) HRA For metro cities 50% & other cities 40% of basic. ii) Conveyance allowance Rs.800/-pm (Max) iii) Vehicle maintenance reimbursement including fuels Rs.15000/-pm vi) Medical reimbursement 8.33% of basic, Max Rs.1250/- pm Employees have option to choose the desired components as part of FBP.

Summation of :fixed pay + gratuity+ insurance+ fBP = ANNUAL GROSS REMUNERATION OF AN EMPLOYEE.

Leave: Holiday year runs from 1st jan to 31st december. Holidays are agreed in advance with the manager. Total annual leave entitlement is 30 days covering both privelege leave and casual leave.
The leaves entitlements: Privilege Leave / Earned Leave : 15 days a year Medical Leave : 08 days a year Casual Leave : 07 days a year