Compensation Management

At United Breweries Limited

Ludhiana.

Presented by
Harvinder singh

Shree Atam Vallabh Jain College, Ludhiana

 MEANING OF THE COMPENSATION

• Compensation may be define as money

received in performance of work plus many
kind of service and benefits that organizations
provide to their employees.
Compensation may be classified into parts
1. Primary or base compensation
2. Supplementary compensation
 UB GROUP
 Founded in 1915.
 Mr. Vittal Mallya became
the first Indian director.
 The group has different
business interest.
DIVISIONS OF UB GROUP
 UBL LUDHIANA
 Founded in 1972.
 Production capacity of 35000
dozen cases then.
 Taken over by UB group in 1984.
 Employees more than 300
employees.
 Current capacity of 90000
cases/day
 BRANDS MANUFACTURED CURRENTLY AT UBL
LUDHIANA

•Kingfisher Lager

•Kingfisher strong / Draught

•Kingfisher Diet

•Kingfisher strong

•Kingfisher Red

•Kalyani Black Label

•Sandpiper

•Zingaro
 AREAS COVERED UNDER PROJECT
RESEARCH
• MINIMUM WAGES
• PROVIDENT FUND
• EMPLOYEE STATE INSURANCE
CORPORTION
• PENSION SCHEME
• FRINGE BENEFIT
 OBJECTIVES OF THE STUDY

• To find out the discrepancies between what is

happening in the factory and what should
actually happen according to factory act.
• How the wages and salary prepared by the HR
department for the labour.
• To know about the HR polices regarding the
workers.
 WAGES AND SALARY
 Wage is a general term referring to direct
monetary compensation. It is also specifically
to refer to payments to hourly rated production
and service workers.
 Salary refers to weekly or monthly rates paid
to clerical,adminstrative and professional
employees.
WAGE AND SALARY STRUCTURE AT
UBL LUDHIANA
SALARY CONTAIN TWO PARTS

Earning Deduction
Part Part
NET WAGES = GROSS EARNING DEDUCTION

Gross earning = Basic salary × working day

Number of day in one month

EMPLOYEE STRUCTURE AT UNITED BREWEWRIES LIMITED
LUDHIANA

TypeS of
employees

Casual Permanent
worker employee

Contractu Executive
al labour & JMC staff
Permanent worker/ helper 1750-70-2450-75-2825-85-3225-100-3750-120-4950
DA 2597
Conveyance 200
HRA 30% of BASIC
WASHING ALLOWANCE 210 FOR ALL CATEGORIES
Assistant operator
DA 1850-75-2600-85-3025-95-3500-110-4060-130-6350
Conveyance 2600
HRA 300
WASHING ALLOWANCE 30% of BASIC
210 FOR ALL CATEGORIES
Semi skilled asst. operator
DA
Conveyance 1900-80-2700-90-3150-105-3675-120-4275-140-5875
HRA 2600
WASHING ALLOWANCE 300
30% of BASIC
Mech./ 210 FOR ALL CATEGORIES
Operator driver
DA
Conveyance 2000-85-2850-95-3325-110-3875-125-4500-145-5950
HRA 2605
WASHING ALLOWANCE 450
30% of BASIC
Heavy skilled worker 210 FOR ALL CATEGORIES
DA
Conveyance
HRA
WASHING ALLOWANCE 2100-95-3050-105-3575-120-4175-140-4875-165-6525
2605
800
30% of BASIC
210 FOR ALL CATEGORIES
PROVIDENT FUND
ACT 1952
 CONTRIBUTION OF THE EMPLOYEE
AND EMPLOYER

• Employee = 12% (BASIC+DA)

• Employer = 12%

12%= 8.33%+3.67%
8.33% Share goes to employee 12%
3.675 goes to the Pension scheme
 EMPLOYEE STATE
INSURANCE CORPORTION
ACT1948
 CONTRIBUTION OF THE EMPLOYEE
AND EMPLOYER

Total contribution= 6.50% (TOTAL EARNING)

Employee contribution= 1.75%

Employer contribution= 4.75%

 OTHER DEDUCTION
• LABOUR WELFARE
• CANTEEN DEDUCTION
• ABSENTEEISM
• LOAN (IF ANY EMPLOYEE TAKEN)
 Casual and contractor worker
• Minimum wages
• Piece rate
• Time rate
 Fringe benefits

Fringe benefits are those benefits which

are supplied by an employer to the
employee and which are not in the form
of wages, salaries and time rated
payments.
 Fringe benefits at UBL Ludhiana
• BONUS ( ACT 1965)
• GRATUITY (ACT 1972)
• SAFETY AND HEALTH
• WELFARE FACILITIES
• PRODUCTION INCENTIVES
• UNIFORM
 RESEARCH METHODOLOGY
SOURCE OF DATA
1. Primary data
2. Secondary data
RESEARCH INSTRUMENT
1. Questionnaire method
2. Sampling design
3. Sampling size
 Q. ARE YOU GETTING SALARY
ACCORDING TO WORK LOAD?
NO
30%

YES
70%

Interpretation: according to above question the 70% worker say that the
workload according to his salary and 30% worker not satisfied with his
salary.
 Q.Are your family needs being catered by
the salary you are getting?
YES NO

40%

60%

Interpretation: These results show that 60% workers say that the family needs are
being catered by the salary and 40% say no.
 Q. ARE YOU CONTRIBUTING FOR THE PROVIDENT FUND
SCHEME?

NO
20% NOT INTERESTED
5%

YES
75%

Interpretation: These results show that 75% workers in favor of the contribution
of the PF scheme, 20% no in favor of the contribution of the PF scheme and 5%
not interested.
 Q.DO YOU GET INCENTIVES?

INDIVDUAL PERFORMANCE GROUP PERFORMANCE

20%

80%

Interpretation: These results show that 80% group performance & individual
performance 20% incentive.
 Q.DO YOU GET MEDICAL BENEFIT?
YES NO

100%

Interpretation: Company has provides the medical facilities for all categories
employee. First aid provided by the company, also provided the facilities by
the M.B.B.S doctor.
 Q. ARE YOU SATISFIED WITH THE HR POLICIES?

YES NO
30%

70%

Interpretation: According to survey Company Policies are very easy to understand,

but newcomers are don’t understanding company policies because there are no
inductions periods for the new employees in the organization.
 FINDINGS AND SUGGESTION
• Production incentives:-In UBL Ludhiana the
production incentives only given to the permanent
employee. I suggested that the production incentives
also given to the casual worker who worked in the
UBL for the last one year.
• And other factor also related that in case of gratuity.
Same producer the production incentive, and I also
again suggest that gratuity is given to the casual
worker.
• And other factor regarding over time.
 LEARNING

• PUNCTUALITY
• HOW TO INTRACT WITH THE LABOUR
• DISCPLINE
• FACTORY ACT