Employee Value Proposition – all forms of rewards – cash kind experiences.
Everything that emp sees to be a part of the organization – cash comp, career dev, worklife
benefits, learning and development, etc.
Total rewards are derived from EVP.
Total rewards –
Concept that presents compensation, benefits, and policies and processes of an employer
which can attract, motivate, and retain employees.
6 elements for rewards: Compensation > Benefits > Work-life effectiveness >
Performance Management > Talent development > Recognition
World at work – largest org of rewards professional – research about rewards, offer courses,
etc
#Work life effectiveness is not same as work life balance
Emp leave org when pms is not effective. Essential component for retention.
Self development is very important
Recognition – no expectations attached. More beneficial
#Difficult to compete on benefits amongst organization. Benefits require a framework to
build overtime
Purpose of benefits –
1. Strategic tool
2. Propagation of org values
3. Retention tool
4.
Classification of benefits –
Statutory vs Voluntary: benefits provided for legal compliance with the laws set by the govt
of a country.
Quantifiable vs Non-Quantifiable:
For employee only vs for family: adoption leaves, maternity leaves, scholarship program for
employee children
Provident fund, employee pension, EDLI – governed by one act – emp provident fund and
misc provision act 1952 (new code: code of social security 2020)
PF contribution –
1. Employer contri (12%): EPS (8.33% upto 1250) + PF (3.67%)
2. Employee contri (12%): PF (12%)
Benefits –
Retirement corpus –
One of the most safe
Tax free interest on accumulated fund
Interest up to 3 years after last contribution
Exempts on contribution
Part withdrawal for special needs and occasions
Family pension –
Retirement pension widow children pension
Insurance –
Employee deposit linked insurance
Employee pension –
Basic + DA
Apart from employer contribution, GOI contribute 1.16% of salary to pension account
Min 1000 and max 7500
Pension calculstion formula – Average salary x pensionable service / 70
Employee deposit linked insurance –
Life insurance
Min sum assured 2.5L max 7L
Sum assured formula – average monthly salary x 30 + 250000
Employer cost of PF benefit –
Employer contri: 12%
PF dmin charges: 0.50%
EDLI contribution: 0.50% (max 75rs per employee)
EDLI admin charges: zero charges effective April 1st 2017
Employee State Insurance –
Governed by ESI act 1948
Free medical services and security to low income employee
Gross salary of emp is max 21k
ESI contri: employer contri – 3.25% of gross salary and 0.75% of gross salary
Scenario 1: PF contribution: Employer: 123.312, employee: 3360 || ESI not applicable
ESI contribution: employer: 585, employee: 135
Total cost of statutory contri:
Gratuity Act
Maternity Benefits
