INCENTIVES AND CONTROL SYSTEM

The operation of the project will give the employees extra benefits in addition to their
basic compensation. These includes the monetary incentives, non-monetary incentives and
employees recognition. Monetary incentives like the 13th month pay, paid off time, PhilHealth,
SSS(Social Security System), bonuses and cash awards which motivate employees to produce
optimally. Non-monetary incentives includes training opportunities, retreats/outings and sick
leaves and lastly the employees recognitionrewards include verbal praises, award ceremonies
and public announcements for a job well done of employees who excel in their job
responsibilities..
Control system inludes segregation of work duties to reduce the risk of mistakes and
inappropriate actions. Also, records maintenance which ensures that proper documentation exists
for each business transaction. Safeguards which prevents unauthorized personnel from
accesingimporatant information from the company. Lastly, adhering Good Manufacturing
Practices for during the production.
According to the Department of Labor and Employment, minimum salary/ wage rates given to
the production workers is 300 pesos a day and in the management, type of duties and position are
considered in determining salary/ wage rate of employees. There will be one President of the
company that will receive Php 75,000 monthly salaries based on the minimum wage rate
stipulated by the labor code. Four Vice-Presidents from different area, for production the
monthly wage is Php 45,000, for marketing the monthly wage is Php 43,000, for financing and
human resource management the monthly wages are Php 40,000. For the three managers and a
financial officer the monthly wages are Php 15,000. Two sales agents will receive Php 3,500
monthly salary and HR staff will receive Php 3,000 monthly salary. The number od laborers to be

hired is justified by the amount of raw materials to be processed and the number of equipment
that needs to be operated. Total annual salary cost is Php 4,038,000.
Table 1. Salary/wage rate and benefits
Position

Number

Monthly Wage
(Php)

Annual Cost
(Php)

75,00

900,000

45,000

540,000

43,000

516,000

40,000

480,000

SSS, Philhealth, 13th

month pay
SSS, Philhealth, 13th
month pay
SSS, Philhealth, 13th
month pay
SSS, Philhealth, 13th
month pay

480,000

SSS, Philhealth, 13th

month pay

Company President
Vice-President for
Production
Vice-President for
Marketing
Vice-President for
Financing
Vice-President for
Human Resources

40,000

15,000

180,000

15,000

180,000

15,000

180,000

SSS, Philhealth, 13th

month pay
SSS, Philhealth, 13th
month pay
SSS, Philhealth, 13th
month pay

180,000

SSS, Philhealth, 13th

month pay

345,600

SSS, Philhealth, 13th

month pay

Operating Manager

Finance Officer
Marketing Manager
Human Resource
Manager

Production
Workers
Sales Agent

Benefits/ Incentives

15,000

7,200

3,500

42,000

3,000

36,000

HR staff

TOTAL:
Source: Department of Labor and Employment

Php3,543,600

SSS, Philhealth, 13th

month pay
SSS, Philhealth, 13th
month pay