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 employers capability. Normally, is use as an incentives to employee ,eg:
Medical services Loan services Vacation package

MANAGING THE FRINGE BENEFITS

Regular government enforcement Increase employee knowledge and right Increase employee responsibility Active trade union participation

PUBLIC SECTOR EMPLOYMENT BENEFITS

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