Transcript PAD214 INTRODUCTION TO PUBLIC PERSONNEL ADMINISTRATION

PAD214
INTRODUCTION TO PUBLIC
PERSONNEL ADMINISTRATION
LESSON 11
EMPLOYEMENT BENEFITS AND
SERVICES
OBJECTIVES OF THIS LECTURE
Upon completing this chapter student should be
able to:
• Understand the concept of employee benefits
• Describe the purpose of benefit policy
• Describe the determinant factors of
compensation policy
• Describe the methods to pay compensation
• Understand the compensation policy in the
public sector
EMPLOYMENT FRINGE BENEFITS
Employment fringe benefits embrace a broad
range of benefits and services that employees
receive as part of the total compensation
package. Employments fringe benefits are
indirect financial compensation which are
usually extended as a condition of employment
are not directly related to performance.
Employment fringe benefits are all employer
provided rewards and services other than
wages or salaries and available to all employees
regardless of seniority or performance.
The purposes of fringe benefits
• Societal objectives – to provide security and
lower the burden on society when facing
employment uncertainties such as:
– Health problems due to illness
– Employment injuries due to accidents
– Retirement
– Termination or lay off
• Organizational objectives-to keep organization
competitive in recruiting and retaining
employees.
– Reduce fatigue
– Discourage labour unrest
– Satisfy employee objective
– Reduce turnover
– Increase employee productivity
• Employee objective- to lower cost and
increase availability
– Insurance less expensive because employer may
pay some or all the cost
– Employees incentives and security
THE TYPES OF FRINGE BENEFITS
• Mandatory or compulsory benefits - the
government mandate (legally requires) certain
benefits. An employer has no choices about
offering the benefits in any way without getting
approval from the government or change the
existing laws. Eg:
Employee provident fund contribution (EPF)as a retirement or pension benefits ( EPF act)
Social security contribution as a survivors
and disability insurance benefits ( SOCSO act)
Time off eg:paid holiday such as annual leave,
maternity leave , sick leave , rest leave (
Employment Act 1955)
Workmen compensation for protecting foreign
workers employed in Malaysia – death and
injuries.
Termination and lay-off compensation
(Employment Act)
• Non-mandatory or Voluntary benefits- in
addition to the benefits required by law. An
employer has en option whether to
implement or not depend on the employer’s
capability. Normally, is use as an incentives to
employee ,eg:
– Medical services
– Loan services
– Vacation package
MANAGING THE FRINGE BENEFITS
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Regular government enforcement
Increase employee knowledge and right
Increase employee responsibility
Active trade union participation
PUBLIC SECTOR EMPLOYMENT
BENEFITS
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ANNUAL LEAVES & PUBLIC HOLIDAYS
MEDICAL BENEFITS
PENSION BENEFITS
GOVERNMENT LOAN (Housing and car)
STUDY LEAVE
METERNITY LEAVE
THAT ALL FOR TODAY
SEE YOU AGAIN NEXT LECTURE
LESSON 12
EMPLOYEMENT DISCIPLINE