La Consolacion University Philippines

Malolos City, Bulacan

GRADUATE SCHOOL DEPARTMENT

EDUC 216- CRISIS MANAGEMENT

COMPENSATION- it is the monetary benefit which is given to an employee or worker giving

their services to an organization. Compensation includes components like salary, wages, bonuses
etc. The compensation provided helps in motivating the employees, build their career and ensure
that there are committed in achieving the company goals.

TYPES;
1. Direct Financial Compensation- receives in form of wages, salaries, bonuses and
commissions.
2. Indirect Financial Compensation- all financial rewards that are not included in direct
compensation.
3. Non-Financial Compensation- satisfaction that person receives from job itself or from
psychological and/or physical environment in which person works.

COMPENSATION OBJECTIVES
1. Improve morale
2. Meet health and Safety needs
3. Attract good employees
4. Maintain a competitive position
5. Enhance the organization’s image

What are Employee Benefits?

Employee benefits are non-financial compensation provided to an employee as part of the

employment contract. Employee benefits may be required by law (depending on the risk associated
with the job or industry and the laws of the country where the job is held) or provided voluntarily
by the employer.

What are the mandatory employee benefits in the Philippines?

 Home Development Mutual Fund (HDMF)/PAG-IBIG FUND

 PhilHealth.
 Foreign nationals working in the Philippines must also make contributions to SSS,
HDMF, and PhilHealth.
 Social Security System (SSS)
 Government Service Insurance System (GSIS) is the equivalent system for
Philippine government employees.

Who Can Receive Mandatory Employee Benefits?

Government-mandated benefits from the Pag-IBIG, PhilHealth, and SSS cover the
following workers:
 Permanent, temporary, or provisional employees (hired by private
companies) under the age of 60 with a monthly income of more than PHP
1,000
 Household workers with a monthly income of at least PHP 1,000, including
kasambahays, drivers, cooks, and gardeners.
 Filipinos working for Philippine-based or foreign-based employers and are
working locally or overseas
 Foreigners not older than 60 years old who are living and working in the
Philippines, except for those who are exempted under the country’s
totalization agreements