Compensation Benefits and Services

Overview about the Factory

N A S R I N G A RME N T S L T D.(Sister Concern of Shinest Group)

Nasrin Garments Ltd is a well-established and leading Apparels manufacturer in the RMG sector of Bangladesh consists of its 100% Export Oriented Woven Garments.Company is a established with latest state of art Machineries to satisfy buyer needs and a team of professional personnel to look after from piece goods to meet the buyers ultimate delivery. We believe in quality and trust worthy relationship to grow up mutually.

Overview about the Factory

General Information:

Name of the Organization : NASRIN GARMENTS LTD(100% Export Oriented Garment Factory)

BGMEA REG NO. : 1695Year of Establishment : 1990 - Shirts

: 2003 - TrousersLegal Aspect of the Organization : A Private CompanyFactory Address : Azim Tower : Plot # 217/1,Beribadh,

Mohammadpur,Dhaka-1207 -Bangladesh.

Overview about the Factory

General Information:(Contact Details)

Factory location : 10 km from the Airport5 km from the Hotel Sonargaon.

Telephone : 880-2-8125607, 9132358Fax : 880-2-8113878

E-mail : Shinest@dhaka.netAnnual Volume : USD 40.00 Million

Advising Bank : Al- Arafah Islami Bank Ltd. Shahajalal Islami Bank Ltd. Social Islami Bank Ltd.

Introduction• In Short, Employee

compensation refers to the benefits (cash, vacation, etc.) that an employee receives in exchange for the service they provide to their employer. In other words, Compensation and benefits refers to the compensation/salary and other monetary and non-monetary benefits passed on by a firm to its employees.

Here , We discuss about “Compensation Benefits and Services” of “Nasrin Garments Limited “ address is Azim Tower : Plot # 217/1, Beribadh, Mohammadpur, Dhaka-1207 ,Bangladesh.

Objectives of the Study• To find out compensation policy issued by a desired factory.

• To find out laws affecting employees benefits & compensation.• To find out Goals of compensation plan.• To find out total compensation for employee satisfaction.• To find out the classification components of compensation.• To find out direct Compensation Components of a desired factory.• To find out Wages and Salary Compensation of a desired factory.• To find out Bonus Compensation of a desired factory.• To find out Overtime Compensation of a desired factory.• To find out Indirect Compensation Components of a desired factory.• To find out Healthcare Compensation of a desired factory.• To find out Recreational Compensation of a desired factory.

Objectives of the Study• To find out Leave & Other Compensation of a desired factory.

• To find out Insurance Compensation of a desired factory.• To find out Recruitment Compensation of a desired factory.• To find out Maternal leave Compensation of a desired factory.• To find out Unemployment Insurance Compensation of a desired factory.• To find out Benefits & Incentives System of a desired Factory-

o Incentive payo Child Careo Sick Payo Healthy & safety Environmento Health & Hygieneo Dining Roomo Prayer Room

Issues in Managing Compensation

Total Reward Trends

Entire Pay Model Process

Compensation Policy Issues by a Desired

Factory• Pay for Performances.• Pay for Skill/Knowledge Level.• Pay for Seniority.• Overtime and Shift pay.• Probationary Pay ( Sometimes).• Paid for Holiday’s work.• Pay for Competency.• Pay for Health Care.• Pay for Recreation.• Pay for life assurance and so on.

Laws Affecting Employee Benefits & Compensation

The Following Laws of Bangladesh are directly affecting employees benefits & Compensation Policy-

• Fair Labor Standards Act (FLSA) .• Employee Income Retirement Security Act of 1974 (ERISA).• Age Discrimination and Employment Act (ADEA).• Family Medical Leave Act (FMLA) of 1996.• Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of

2001.• Health Insurance Portability and Accountability Act of 1996

(HIPAA) (and amendments).• Pension Protection Act of 2006.

Goals of Compensation

Plan• Employees feel they are compensated/rewarded fairly/equitably for their efforts and contributions to an organization’s success.

• Employers are able to attract and retain employees who will contribute to the organization’s success.

Total Compensati

onEmployee Satisfaction

Rewards• Bonus• Salary Increases• Promotions• Equity Offerings• Awards• Recognition• New job assignments

Benefits• Health Plans• Retirement Plans• Vacation/ time off• Paid Training• Working Hours

Components of Compensation

Direct Compensation Components of a desired

factoryThe most well-recognized form of compensation, and probably the first type of compensation sought by most workers, is direct compensation. Direct compensation is the money directly paid to employees in exchange for their labor. Direct compensation includes wages, salaries, bonuses, tips and commissions and so on. The main components are given below:-

Basic salary and wagesBonusesTips and CommissionsOvertime etc.

Wages and Salary Compensation of a desired

factoryWages generally refer to hourly compensation paid to operating employees and salary is income paid to an individual on the basis of time. In “Nasrin Garments Ltd” management also recognizes that wages are essential to meeting employees’ basic needs . As a result Company pays employees, as a Garments Floor, at least the minimum wage required by our local law in Bangladesh prevailing industry wage ,whichever is higher, and always provides legally mandated benefits. Wages and overtime charges are paid within the 7th of the following month. The Factory pays TK.5300.00 as the monthly minimum Salary to a new worker/Operator.

Bonus Compensati

on of a desired factory

Additional compensation given to an employee above his/her normal wage is called Bonus. A bonus can be used as a reward for achieving specific goals set by the company, or for dedication to the company. “Nasrin Garments Ltd.” paid their employees according to their performance assessment and their enthusiasm for work.

Overtime Compensation of a

desired factoryIn addition to their (Workers) compensation for regular hours of work, employees are compensated for overtime hours at such premium rate as is legally required in Bangladesh or at a rate equal to the double of their regular hourly compensation rate. Except in extraordinary business circumstances, employees are (i) not required to work more than the lesser of (a) 48 hours per week and 12 hours overtime or (b) the limits on regular and overtime hours allowed by the law of Bangladesh, and (ii) are entitled to at least one day off in every seven day period.

Indirect Compensation Components of a desired factory

Non-monetary remuneration to employees, including annual leave, health insurance, life assurance, company car and mobile and pension funds. Note that both ‘standard’ contractual features (annual leave) as well as valuable benefits (healthcare) can be included in indirect compensation. The main indirect component are –

Insurance (Health)Leave (Sick, Holiday , etc.)Life assuranceSafety facility and so on.

Healthcare Compensation of a desired factory

Considering the provision of health care facility to our workers and staffs under the prevailing labor act, “Nasrin Garments Ltd “ has a complete dispensary supported by a Medical Officer trained in medicine and gynecology and one trained nurses. Necessary First Aid, along with supply of emergency medicines provided at free of cost from this dispensary. In the case of long term treatments of any worker, “Nasrin Garments Ltd “ takes the patient to a better hospital. Under the circumstances the authority takes necessary steps to provide full course of treatment. “Nasrin Garments Ltd” has a own ambulance and all time ambulance ready for service to our workers. Most health benefit employee contributions will be deducted from pay pre-tax.

Recreational Compensation of a

desired factoryThe factory arrange an annual picnic or special feast for the workers every year on our Bengali New Years Day or Pahela Baishakh. All workers and staffs enjoy and celebrate the day with a festive mood. In the evening they participate in a cultural event.

Leave & Other Compensation of a desired

factory“Nasrin Garments Ltd” provides all kinds of leave benefits to its worker as HN treats all the workers as its valuable asset. Maternity Leave Benefits, Two festival Bonus, Yearly increment of Monthly Salary , Attendance Bonus, and Financial supports to all employees in accordance with the recommendation by the Social Welfare Committee.

Insurance Compensation of a desired factory

More than one-third of RMG factories in Bangladesh are yet to give Group Insurance Coverage (GIC) to their workers, in what amounts to non-compliance with the labor laws and “Nasrin Garments Ltd” is one of that factory. They provide insurance assurance as well as life assurance for their workers & staffs to ensure their better life.

Recruitment Compensation of a

desired factory“Nasrin Garments Ltd” has a written Recruitment Policy. All Recruits are above 18 years of age. It has a strong Recruitment committee, where the Recruitment committee directly takes part to recruit the workers and staffs considering the age first then experiences and skills.

Maternal leave Compensation of a desired

factory “Nasrin Garments Ltd” provides every female

workers maternal leave according to the Bangladesh Labor Act,2006 & Amendment, 2013. Usually they provide 12 weeks unpaid leave as a maternity benefits. They also ensure the female workers to return their job or equivalent position after the leave.

Unemployment Insurance Compensation of a desired factory “Nasrin Garments Ltd” also

provides for benefits of unemployment insurance if a workers is unable to work due to permanent injury occurred during the working hour. As well as they also ensure best medical support for the injured workers. Along this , they furthermore provides the job opportunity to the factory to his referred one against supplementary benefits.

Deduction System of a desired factory

“Nasrin Garments Ltd” also deducted some money from the gross pay of the workers for providing some compensation. But the amount has been deducted from the workers , the factory also paid the same amount to assure better Compensation & Benefits. The sector from which workers have to pay are given below-

Credit Union PaymentHealth InsuranceAccidental DeathLife Insurance and so on.

Benefits & Incentives System of a desired Factory(Incentive pay)

Sometimes “Nasrin Garments Ltd” offered incentive or money to encourage employees to strive for higher level of performance. By this way they try to motivate the employee in order to get best response in production.

Benefits & Incentives System of a desired Factory(Child Care)

There is a opportunity of Child care system inside the factory . The female employees and workers are provided on sited child care system on the production floor. So that , during the working time their mother can take care of them & as well as the factory also provide a full time nurse for the child care for taking care the child when their mother was not present their.

Benefits & Incentives System of a desired Factory(Sick Pay)

“Nasrin Garments Ltd” provide an allowance of days each year for sickness, with regular pay. Usually workers receive (±) 5-10 days within a year as “ Sick Leave” without deduction from any kind of Value.

Benefits & Incentives System of a desired Factory(Healthy & Safety Environment)

“Nasrin Garments Ltd” provides a safe and healthy working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of employer facilities. HN believes that in a sound work place workers can give their best output to reach at the goal. Entire floors are well ventilated by installing sufficient number of air circulation devises. Workers can work in cool atmosphere.

Benefits & Incentives System of a desired Factory(Healthy & Hygiene)

The Factory is lighted well with sufficient Tube lights, natural flow of air. All floors are well ventilated and well furnished with sufficient hygienic toilets. Toilets are cleaned and well maintained with detergent, liquid toilet cleaner and flashing with sufficient quantity of tap water. Workers are provided with pure & safe drinking water.

Benefits & Incentives System of a desired Factory(Dining Room)

Dining hall is situated on the 3rd floor & 7th Floor .Numbers of Ayahs are engaged to maintain a hygienic environment taking necessary measures. 900 hundred workers can sit at a time to take their lunch.

Benefits & Incentives System of a desired Factory(Prayer Room)

Paying the respect towards religious sentiment of their workers two separate prayer rooms; one for Male and another for Female have been set up near by the Dining Hall at the 3th floor of the factory.

Closing Thoughts• How employees are “compensated” takes many forms –

salary, benefits, working conditions, challenging/stimulating work, co-workers, etc. The right “mix” for each person is different.

• Pay policies will differ for every employer – some will focus on cash compensation and some will focus on Total Compensation

• The employer’s main goal is structuring compensation and benefit programs is to be able to attract and retain the right employees needed to help the employer be competitive .

Closing Thoughts• Employee benefits have huge budget impacts to employers.• Benefits are the “hidden paycheck” for employees.• Employees need to understand the “total compensation” an employer provides –

not just the “salary.” Employers need to sell Total Compensation – not just salary.• Employees need to be “educated consumers” of benefit programs – especially

health care and retirement programs.• Employees should take advantage of retirement plan offerings and save early– and

always save enough to at least take advantage of employer’s matching contribution.

Thank you for your Patience

Any Questions?