Compensation Scheme

The basic salary for each employee is computed depending on his position. An
overtime pay of 25 percent of his basic salary will be given to an employee having
excess in his regular time. 30 percent of basic pay will be entitled to employees working
during special holidays.
Every business aims to maximize its profit while being able to meet and satisfy the
demand of its customer. These objectives are similar as to attaining the highest
standard of professionalism among the employees. Selection of qualified employees,
proper training, effective motivation and dedication of the employees will help attain the
firms objective, because the company has decided to adopt and implement the
following:
A. Personnel Policies
1. Pay fair and reasonable compensation.
2. Help each employee to attain his maximum potential, efficiency
and effectiveness.
3. Provide opportunities for growth and promotion for each employee.
4. Resolve labor management differences.
B. Working Days and Holidays
1. A total of eight (8) hours per day should be the minimum hours
required for the employee.
2. Working days would be from Mondays Fridays.
The following must be observed by the company as holidays as provided for under
Executive Order 203 as amended by Republic Act 9177:

1.New Years Day (January 1)

2.Araw ng Kagitingan (April 9)
3.Holy Week (Maundy Thursday and Good Friday)
4.Labor Day (May 1)
5.Independence Day (June 12)
6.Bonifacio Day (November 30)
7.Eidul Fitr ( Movable Date)
8.Christmas Day (December 25)
9.Rizal Day (December 30)
C. Working Rules
1. All employees are expected to be on their respective stations every
Monday to Friday from 9:00 a.m. to 5 p.m. All employees would be
given a lunch break from 12:00 p.m. to 1:00 p.m.
2. Absences are only allowed if it is due to health problems,
circumstances brought by natural calamities and emergency family
problems.
3. Leave of absence should be requested 3-5 days before the said
date of leave.
4. Leaving the working place without any permission of valid reason is
strictly prohibited.
D. Other Benefits
1. Employees are entitled to receive free general check up annually.
2. Maternity leaves are granted to female employees.

3. Meal allowance.
Annual Compensation
SSS, PhilHealth, and PAG-IBIG payments will be deducted on the salary of the
employees for medical, and/or hospitalization purposes and other loans. The employers
share will be remitted by the company. The proposed monthly compensation scheme is
shown in Table 3.2.

Position
General
Manager
Marketing/Sa
les Officer
Finance
Officer
Production
Supervisor
Cashier
Driver
Workers

Basic
Pay

20,00
0

1 15,00
0
15,00
1
0
1 15,00
0
12,00
1
0
1 9,831
2 9,831

Employer's
Contribution
Phil
PAGSSS
Healt
IBIG
h

Monthly
Salary

13th
Month
Pay

Annual
Salary

1,209

250

400

21,859

20,000

282,308

1,135

188

300

16,623

15,000

214,476

1,135

188

300

16,623

15,000

214,476

1,135

188

300

16,623

15,000

214,476

894
747
747

150
113
113

240
197
197

13,284
10,888
10,888

12,000
9,831
9,831

171,408
140,487
140,487

Table 3.2
Proposed Monthly Compensation Scheme

Position
General
Manager
Marketing/
Sales
Officer

Year One

Year Two

Year Three

Year Four

Year Five

282,308

296,423

310,538

324,653

338,768

214,476

225,200

235,924

246,648

257,372

Finance
Officer

214,476

225,200

235,924

246,648

257,372

Production
Supervisor
Cashier
Driver
Workers

214,476
171,408
140,487
280,974

225,200
179,978
147,511
295,023

235,924
154,535
154,535
309,070

246,648
163,105
161,559
323,119

257,372
168,583
168,583
337,166

1,518,605

1,594,535

1,636,449

1,712,381

1,785,215

Total

It is assumed that there will be a 5% salary/wage increase annually from year one
to year five based on the year one salary/wage level.
Table 3.3
Projected Annual Compensation Scheme