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PAD214

INTRODUCTION TO PUBLIC

PERSONNEL ADMINISTRATION

LESSON 11

EMPLOYEMENT BENEFITS ANDSERVICES

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OBJECTIVES OF THIS LECTURE

Upon completing this chapter student should beable 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

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EMPLOYMENT FRINGE BENEFITS

Employment fringe benefits embrace a broadrange of benefits and services that employees

receive as part of the total compensation

package. Employments fringe benefits areindirect 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.

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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

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Organizational objectives-to keep organization

competitive in recruiting and retaining

employees.

Reduce fatigue

Discourage labour unrest

Satisfy employee objective

Reduce turnover

Increase employee productivity

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Employee objective- to lower cost and

increase availability

Insurance less expensive because employer may

pay some or all the cost

Employees incentives and security

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THE TYPES OF FRINGE BENEFITS

Mandatory or compulsory benefits - thegovernment mandate (legally requires) certain

benefits. An employer has no choices about

offering the benefits in any way without gettingapproval 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)

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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)

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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

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MANAGING THE FRINGE BENEFITS

Regular government enforcement

Increase employee knowledge and right

Increase employee responsibility Active trade union participation

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PUBLIC SECTOR EMPLOYMENT

BENEFITS

ANNUAL LEAVES & PUBLIC HOLIDAYS

MEDICAL BENEFITS

PENSION BENEFITS GOVERNMENT LOAN (Housing and car)

STUDY LEAVE

METERNITY LEAVE

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THAT ALL FOR TODAY

SEE YOU AGAIN NEXT LECTURE

LESSON 12

EMPLOYEMENT DISCIPLINE