Wednesday, February 21, 2024

Job Evaluation

- Determining Internal Equity Pay

• Internal pay equity involves comparing jobs within an organization to ensure that the people
in jobs worth the most money are paid accordingly.

- Step 1: Determining Compensable Job Factors

• The first step in evaluating a job is to decide what factors differentiate the relative worth of
jobs. Possible compensable job factors include:

- Level of responsibility
- Physical demands
- Mental demands
- Education requirement
- Training and experience requirements
- Working condition
- Step 2: Determining the Levels for Each Compensable Factor
• For a factor such as education, the levels are easy to determine (e.g., high school diploma,
associate's degree, bachelor's degree).

• For factors such as responsibility, a considerable amount of time and discussion may be
required to determine the levels.

- Step 3: Determining the Factor Weights

• Because some factors are more important than others, weights must be assigned to each
factor and to each level within a factor.

- A job evaluation committee determines the total number of points that will be distributed
among the factors. Usually, the number is some multiple of 100 (for example, 100, 500,

1
 1,000) and is based on the number of compensable factors. The greater the number of
factors, the greater the number of points.

- Each factor is weighted by assigning a number of points. The more important the factor,
the greater the number of points that will be assigned.

- Determining External Equity Pay

• With external equity, the worth of a job is determined by comparing the job to the external
market (other organizations)

• External equity is important if an organization is to attract and retain employees. In other

words, it must be competitive with the compensation plans of other organizations.

• To determine external equity, organizations use salary surveys. Sent to other organizations,
these surveys ask how much an organization pays its employees in various positions.

• On the basis of the survey results, an organization can decide where it wants to be in
relation to the compensation policies of other organizations (often called market position).

- Keep in mind that job evaluation concerns the worth of the job itself, not
the worth of a person in the job.
• For example, suppose a salary survey reveals that the going rate for a job falls within the
range of 30, 000PHP to 40,000PHP, and an organization, deciding to be at the upper end of
the market, sets its range for the position at 35,000-45,000PHP.

• Decisions must then be made regarding where in the 5,000PHP range each particular
employee will be paid.

• This decision is based on such factors as years of experience, years with the company,
special skills, education, local cost of living, and performance level.

- We have earlier discussed the amount of money a job is worth: this amount is
called direct compensation. Employees are also compensated in other ways, such
as pay for time not worked (e.g., holidays, vacation, sick days), clothing
allowance, medical reimbursements, 13th and 14th month pay, travel allowance,
food allowance.
- Consequently, a job with a direct compensation of 20,000PHP might actually be
worth more than one at 30,000PHP because of the indirect compensation

2
 package. Example: retirement benefits, flexible timings, insurance, overtime
policy.
- Labor Standard
• Refer to the Philippine Law that provides the minimum requirements regarding work
conditions, work hours, wages, benefits and other employment conditions that are being
implemented by the management.

- Labor Relations
• The goal of labor relations is to strike a proper balance between the protection of worker
rights versus the exercise of management prerogatives.

- Wage vs. Salary

• Wages are hourly rates of pay regulated by the Labor Standards of the Department of Labor
and Employment together with the National Wages and Productivity Committee (NWPC).

• Salaries which are usually paid to managers and professionals, are annual or monthly
calculations of pay that usually have less relation to hours worked.

- Minimum Wage
• Lowest amount of wage that an employer will pay to an employee.
• Exempted from paying minimum wages: distress establishment, new business enterprises,
retail and service-not more than 10 employees, establishment affected by natural calamity.

- RTWPB-9 had issued Wage Order numbers R9-22 and R9-DW-04, prescribing
the minimum wage increase for workers working in the private sector from
Php351. 00 to Php381. 00 daily while for the kasambahay is P4,600 effective on
November 12, 2023. Nov 6, 2023
- Overtime, Holiday, Premium, Night Shift Differential Pay
• Art. 93. COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY
• Art. 94. Right to Holiday Pay
• At least 25% for overtime work rendered on a holiday or rest day
• If it is holiday and at the same time rest day of an employee, it will be 50%

3
 • Double pay or 200% if the employee work on a holiday, 100% if not.
• Every worker shall be paid regular wage during regular holiday except establishment with
less than 10 employees

• 13th Month pay and Bonus PD No. 851

- Not later than dec 24 every year
- 1/12 of the basic salary of an employee within the calendar year (multiply your basic
salary by the no. of months you have worked for the entire year then divide it by 12)

- Night Shift Differential Pay

• Night shift differential pay is an additional pay for work between 6:00 p.m. and 6:00 a.m.
the following day for those in the Government Service, and between 10:00 p.m. and 6:00
a.m. the following day for those in the private sector. It is a legally mandated benefit.

• The night shift differential pay is at 20% for those in the Government Service, while 10%
for those in the private sector.

- The Regular holidays are:

• New Year's Day - January 1 (Monday)
• Maundy Thursday - March 28
• Good Friday - March 29
• Araw ng Kagitingan - April 9 (Tuesday)
• Labor Day - May 1 (Wednesday)
• Independence Day - June 12 (Wednesday)
• National Heroes Day - August 26
(Monday)

• Bonifacio Day - November 30 (Saturday)

• Christmas Day - December 25
(Wednesday)

• Rizal Day - December 30 (Monday)

- Special Non-working) days

4
 • Special non-working days
- Ninoy Aquino Day - August 21 (Wednesday)
- All Saints' Day - November 1 (Friday)
- Feast of the Immaculate Conception of Mary -
December 8 (Sunday)

- Last day of the year - December 31 (Tuesday)

• Additional special non-working days
- Chinese New Year - February 9 (Friday), following Proclamation No. 453
- Black Saturday - March 30
- All Souls' Day - November 2 (Saturday)
- Christmas Eve - December 24 (Tuesday)
- Service Leave, Maternity Leave, and Magna Carta for Women
• PD 442, Art 95. Service Incentive Leave. Every employee who has rendered at least 1 year
of service shall be entitled to a yearly service incentive leave of 5 days with pay.

• RA 9262 Anti - violence against women and their children act of 2004. Sec. 43. Entitled to
leave - paid leave absence up to 10 days in addition to other paid leaves under Labor Code
and Civil Service Rules.

• RA No. 9.710, Sec. 18. Special Leave Benefits for Woman

- A woman employee who rendered at least 6 months for the last 12 months should be
entitled to a special leave benefit for 2 months with full pay based on her gross monthly
compensation following surgery caused by gynecological disorders.

• RA 8972: Solo parents welfare act of 1996. Section 8. Parental Leave. 7 days leave every
year for the solo parent who has rendered service of at least 1 year.

• RA No. 8187 Paternity Leave Act of 1996. Sec. 2. 7 days with full pay for the first four
deliveries of a legitimate spouse.

• RA No. 11210 Expanded Maternity Leave

- 105 paid leave for live birth

5
 - 7 days leave transferable to the father
- 15 days additional paid leave for Solo Parent under RA 9972
- 30 days additional leave without pay
- 60 days paid leave by miscarriage, abortion.

• Retirement and Separation Pay

- Retirement Pay Art. 287. Any employee may be retired upon reaching the retirement age
established in the collective bargaining agreement or other applicable employment
contract.

• Retirement Pay is entitled to ½ month salary for every year of service, a fraction of 6
months could be considered as one whole year. ,

• 60 y/o or 65y/o
- Separation Pay Art 283. Closure of establishment and reduction of personnel.
• Written Notice to department of labor and employment for at least 1 month.
• Separation pays to at least 1 month pay for every yr. of service, whichever is higher.
• Exceptions: When the establishment is closed due to serious financial causes, or the
company cannot recover.

- SSS. PAG-IBIG. PHILHEALTH

• R.A No. 11199 Social Security Act of 2018.
- Section 2. Declaration Policy. Policy of the state to establish, develop, promote and
perfect a sound and viable tax-exempt social security system suitable to the needs of the
people throughout the Philippines.

• PD NO. 1752 as amended, home development mutual fund law of 1980

- Sec. 2 Policy of the RA of the Ph to motivate the employe and other earning groups to
better plan and provide for their housing needs

• R.A 10606 National health insurance Act of 2013

- Sec. 2 Declaration of Principles and Policies - to make essential goods, health and other
social services available to all people