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

firm’s 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 Year’s 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 employer’s

share will be remitted by the company. The proposed monthly compensation scheme is

shown in Table 3.2.

Position #Basic Pay

Employer's ContributionMonthly

Salary13th Month

PayAnnual SalarySSS Phil

HealthPAG-IBIG

General Man-ager

120,000 1,209 250 400 21,859 20,000 282,308

Marketing/Sales Officer 1

15,000 1,135 188 300 16,623 15,000 214,476Finance Officer 1 15,000 1,135 188 300 16,623 15,000 214,476Production Su-pervisor 1

15,000 1,135 188 300 16,623 15,000 214,476Cashier 1 12,000 894 150 240 13,284 12,000 171,408Driver 1 9,831 747 113 197 10,888 9,831 140,487Workers 2 9,831 747 113 197 10,888 9,831 140,487

Table 3.2

Proposed Monthly Compensation Scheme

Position Year One Year Two Year Three Year Four Year Five

General Manager 282,308 296,423 310,538 324,653 338,768Marketing/ Sales Offi-cer 214,476 225,200 235,924 246,648 257,372

Finance Of-ficer 214,476 225,200 235,924 246,648 257,372

Production Supervisor 214,476 225,200 235,924 246,648 257,372Cashier 171,408 179,978 154,535 163,105 168,583Driver 140,487 147,511 154,535 161,559 168,583Workers 280,974 295,023 309,070 323,119 337,166

Total 1,518,605 1,594,535 1,636,449 1,712,381 1,785,215

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