Meaning and Significance,purpose, components, types. Piece rated, time rated and skills basedapproaches. Daily, weekly and monthly payments. Characteristics of bestcompensation plans. Fixed pay and variable pay, Understanding theterminologies- compensation, benefit, salary, pay, basic pay, wage,allowance, incentive, commission, reward, recognition, perquisite, fringebenefit, , subsistence allowance, reimbursement, consolidated pay, stipend,service charges, pay scales, severance pay, terminal benefit, bonus, joiningbonus, retention bonus, relocation pay, increment, and stagnation increment.Workers compensation, managerial compensation and executivecompensation.
Importance of economic theories in theunderstanding of compensation and benefits, the evolution of just wagedoctrine of Thomas Aquinas, subsistence wage theory of Adam Smith andDavid Ricardo, wage fund theory of John Stuart Mill and Nassau Senior,marginal productivity theory of Alfred Marshal and John Bates Clark,bargaining theory by Arthur Cecil Pigou, residual claimant theory by FrancisA. Walker, surplus value theory by Carl Marx, and other theories.
Meaning and Significancecompensation principles. Equity (internal and external), bargaining ability ofemployee unions and individual employees, statutory requirements, ability topay, worth of the job, demand-supply conditions in job market. Jobevaluation and salary survey
Meaning and significance, advantagesand limitations, CTC, Gross salary and Net salary. Components of CTC-Monthly, quarterly, annual and one time components. Advance componentsand deferred components. Attendance linked components, seniority linkedcomponents, and performance linked components. Paid leave and holidays,conveyance, leave travel concession, food coupons, housing,Benefits,perquisites and statutory components.
Meaning, significance and characteristics, basisfor benefits payment, statutory benefits- employees state insurance,provident fund, gratuity, unemployment benefits, skills up gradation benefits,pension, employees compensation and Maternity benefit,non statutorybenefits- insurance against injury, illness, disability, fatal accident and death.Meaning and significance of incentives, basis for incentives payment,purpose and types- regular, periodical and occasional incentives, cashincentives and incentives as fringe benefits. Stock options.
Meaning and significance of executivecompensation, unique features of executive compensation, fixed componentsand variable components, perquisites and benefits basis for determiningexecutive compensation, statutory upper limit on executive compensation asper Companies Act 1956, stock options, joining bonus, retention bonus andseverance pay.
Payment of wages Act 1936, Minimumwages Act 1948, Payment of Bonus Act 1965, and Equal Remuneration Act1976.
Meaning and significance of taxation onsalary, Professional tax of state government on salaries people, income tax ofcentral government on salaries people. Components of salary and benefitswhich are exempted from payment of tax. Approaches to create salarystructures to minimize the tax liability. Procedure for deduction andremittance of taxes. Responsibilities of employer and employee in complyingwith taxation law.