Chp 11 Employee Benefits El

8/6/2019 Chp 11 Employee Benefits El

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Chapter 11EMPLOYEE BENEFITS


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Benefits (Indirect Financial Compensation)

All financial rewards that are not paid directly tothe employee

Rewards that employees receive for being members ofthe organization and for their positions in the organization

Improve employee work satisfaction

Meet employee health and security requirements

Attract and motivate employees

Reduce turnover

Maintain a favorable competitive position

To meet legal requirements

Objectives of Benefits Programs


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Types of Employee Benefits

Required By Law(Statutory benefits) Discretionary(Voluntary)

Health care (medical/dental)

EPF (private sector)(retirement benefits)

Payment for time not worked- public holiday

- annual leave- sick leave- maternity leave

Payment for time not worked- Paternity leave- Marriage leave- Compassionate leave- Study leave etc

SOCSO (private sector)(Insurance benefits)

Other optional benefits- Loans (house/car)-Tuition fee reimbursement- Family-friendly benefits


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Under the Act, an employees earning less than RM3,000must compulsorily contribute to SOCSO.

Employees Earning More than RM3,000 and who had not

previously registered or paid contributions to SOCSO are given anoption to be covered under the Act.

Categories of employees exempted from SOCSO's coverage: Government employees

Domestic servants Self -employed Foreign workers Business owner

Rate of contribution: Employer: 1.75% of the employees

Employee: 0.50% monthly salary


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COVERAGE

1) Accidents which occur while in the course of the work.2) Accidents which occur while traveling

On a route between his place of residence and his place of work.On a route between his place of work and the place where he takes his mealduring any authorized recess.On a journey made for any reason which is directly connected to hisemployment.

3) Accident during an emergencyAccident which occurs during an emergency at the employer's premises whilein the course of assisting, rescuing, or protecting other people from disasters(such as a fire breakout).

4) Occupational DiseaseDisease that results from his occupation.

Examples:Loss of hearing due to exposure to continuous excessive noise.Respiratory diseases


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Employee Provident Fund (EPF)

Employees contributionAt least 11% of monthly salary

Employers contributionAt least 12% of monthly salary

EPF Act 1991 it is compulsory for all employees andemployers in the private sector to contribute towardsthe fund and continue to do so until they are 55.


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Pay for Time Not Worked

Public holidays

All employees are entitled to 10 paid Public Holidays (PHs)per year (as declared by Federal Government or/and StateGovernment)

The other 6 days will be chosen by the employers

Compulsory PHs:National Day,Kings Birthday,Birthday of Sultan or Head of State Workers Day (labor day)


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No. of years service No. of days leave per year Less than 2 years 14 2 - 5 years 18 more than 5 years 22

Pay for Time Not WorkedSick leave

Employees are entitled to sick leave if they have astatement (MC) from a doctor certifying them unfit for work.

If an employee is hospitalized, he/she is entitled toleave for up to 60 days per year.


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Years of service No . of days leaveLess than 2 82 5 12More than 5 16

Pay for Time Not WorkedAnnual leave Employees are entitled to take paid annual leave each year.Amount increases with years of service.Minimum paid annual leave as set by the Employment Act:

Maternity leave Every female employee is entitled to at least 60 consecutivedays of paid maternity leave in respect of each confinement.

Up to 5 children


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Discretionary (Voluntary) BenefitsHealth benefits

medical treatment On-site health care dental care Vision care

Payment for time not workedPaternity leaveLeave for educational purposesMarriage leave

Tuition reimbursement programsSpecial treats: e.g. annual dinner, family day Food coupons, subsidized cafeteriasTransportationLow interest loans (car / house)Uniforms and safety clothingStaff purchase discountsSports and recreational facilitiesLegal ServicesFinancial PlanningRelocation benefits


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Work/Life Benefits: Balancing Work and Home Needs

Time off for childrens school activities Employer-paid on-site or near-site child care facilities

Subsidized childcare costs (partial funding)

Health club and wellness programs Subsidized temporary or emergency dependent care costs

Extended leave policies for child/elder care

Educational reimbursement

Sick-child programs (caregiver on call)

Work-at-home arrangements/telecommuting

Flexible work hours scheduling


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Requirements for a Sound BenefitsProgram

Allowing forEmployee

Involvement

Benefits for aDiverse Workforce

Providingfor Flexibility


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Benefits for a diverse workforce

With the increasing diversity of todays workforce, therereally is no such thing as a typical employee

A workforce that is far from being homogeneous basespreference of benefits on factors such as

GenderAge

Marital status

Number of dependents

Years of service

Job title


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Providing for Flexibility

Flexible benefit plans (cafeteria plans) Benefit plan that allows employees to select from a widerange of options how their direct compensation andbenefits will be distributed

Allow employees to select benefits most appropriate totheir individual needs and lifestyles

Provide a menu or choice of benefits for employees toselect from


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Benefits Issues


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Communicating Information about Benefits Package

Workers need to fully understand benefits that are provided them

In-house publications (employee handbooks/newsletters)

Group meeting and training classes

Audiocassettes/videotapes

Bulletin boards

Payroll inserts messages

Specialty brochures

Employee self-service systems (ESS)

Poster, Visual Presentations (e.g. slide shows etc)

Benefits hotline (to answer questions related to EBs)

Intranet

Ways to communicate:

Chp 11 Employee Benefits El

Documents

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