HOLY CHILD JESUS COLLEGE

COLLEGE DEPARTMENT
GUMACA, QUEZON

COMPENSATION
SYSTEM

Submitted to:
JOWELL P. NOSCAL
HRDM 104 Instructor

Submitted by:
Almira A. Hapita
Maria jessa joy A. Lopez
BSBA III – HRDM
 COMPANY DISCRIPTION

MiraJoy General Merchandise established on December 22, 2014in Gumaca, Quezon.

MiraJoy is a company offering variety of beverages, diapers, candies, can goods, diet foods,
snack foods, detergent coffee, noodles, shampoos, bread and more.

The products to be sold are grocery items and frozen goods which are considered as basic
necessity for every households. The store is situated along the National High-way Gumaca,
Quezon

Manpower/Personnel

 Bookkeeper – prepares and maintains accuracy and reliability of

financial matters and fax reports.
 Cashiers – person liable for issuing receipts and admits customers
payments.
 Bagger – assists the cashiers and responsible for packing the goods
acquired.
 Dicer/Organizer – person who responsible for the arrangement of all
the goods.
 Guard – responsible for security safety.
Compensation

The organizer/dicer, bagger and store room personnel will have a salary of Php225 per
day; cashiers accumulates Php305, guards will have a salary of Php300 per day and the
POSITION SALARIES PER NUMBER OF ANNUAL SALARIES
MONTH EMPLOYEES EXPENSE
Bookkeeper Php 1, 500.00 1 Php18,000.00
Organizer/Dicer 6,630.00 13 1,034,000,280.00
Cashier 7,930.00 8 761,280.00
Store room 6,630.00 8 636,480.00
personnel
Guard 7,800.00 2 636,480.00
Bagger 6,630.00 8 187,200.00

TOTAL 272, 810.00 40 3,273,270.00

 accountant will receive Php1,500 at least once a month a visit.

SUMMARY OF PROJECT COST

We have established that the following are our financial needs:

INITIAL CAPITAL YEAR 1 MONTHLY X3 MONTH TOTAL

OPERATING
EXPENSE

Office supplies Php346,251.40 Php28,854.28 3 Php86,562.85

expense
Utilities expense 205,088.00 17,090.67 3 51,272.00
Permit and license 7,240.00 603.33 3 1,810.00
expense
Salaries expense 3,273,270.00 272,810.00 3 818, 430.00
Payment misc. 30,500.00 2,541.67 3 7,625.00
Start up inventory 30,665,966.42 2,555,797.20 3 7,666,491,60

TOTAL 8,632,191.45

PRE-OPERATING Php900,000.00
EXPENSE

Purchase of land 3,461,992.44

Building cost
Purchase 818, 430.00
furniture and
fixture
Payment of legal 7,625.00
requirements
Cash reserve 35,813,362.10

INITIAL CAPITAL 50,000,000.00

REQUIREMENTS

SOURCE FUNDING

Those financial needs came from the investment of the partners. The investment from
partners would be Php50,000,000.00
  Almira Hapita – Php25,000,000.00
 Maria jessa joy A. Lopez Php25,000,000.00

FINANCIAL CAPABILITY

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Net income Php3,321,098.37 Php4,200,026.14 Php5,600,323.18 Php6,500,000.00 Php8,000,000.00

Divided by
Total 50,000,000.00 51,022,366.14 53,051,002.16 54,000,000.00 54,200,000.00
assets
Return on 0.6 0.8 0.10 0.12 0.14
investment

In yearly operation of the business it shoes that the profit margin fluctuates. The profit
margin accumulates 18%, 26%, 30% and 33% respectively. The net turn over on asset
accumulates 6% on the first year and 8%, 10%, 12% and 14% on the second to fifth year.
Thus, profit and return on investment is very satisfying.
 ECONOMIC CONDITIONS IN THE COMMUNITY

With the fast growing populations which can be visibly seen from the data of the National
Statistic Office (NSO) it is assumed by the proponents that the enterprise will soon expand
its product line and increase its inventory level. Actually, there are grocery stores exist
nearby in Gumaca, Quezon such as Caparros Mart, Dory’s Store, GL Store and many more.
But it’s not conducive enough to cope up with demand of the people in the perspective
resident in Gumaca and nearby municipalities such as Lopez and Atimonan, Quezon. This
also includes student from Southern Luzon State University, Eastern Quezon College and
Holy child Jesus College.
The store is situated along the National High-way Gumaca, Quezon in order to be more
convenient to consumers.

LAWS AND GOVERNMENT REGULATIONS

The business duly registered with the local government, and will be engaged as a super
mart; following the rules and regulations by the Department of Trade and Industry and
Bureau of Internal Revenue and other Agencies that going to mention below.
These laws and regulations that going to mention below include licensing and registration
of business name, workers compensation, unemployment compensation, and permission to
do business in a form other than a sole proprietorship. The collection of sales taxes and the
withholding of employees’ wages are further examples of obligations with which to comply.

 The Occupational Safety and Health Administration (OSHA) have very specific
requirements concerning health and safety which apply to many businesses’
employees and customers.

 Product/Service Specific
The very nature of some businesses makes them susceptible to special laws and
regulations. Businesses supplying food or ingested items must obtain health permits
and undergo initial and periodic inspections. Entrepreneurs need to know what
laws and regulations apply to their particular business. Once engaged in business,
they must be constantly aware of what new or amended laws and regulations apply.

 Land Use Regulation

Regardless of the type of business or its location—in a home, manufacturing plant, strip
mall, or high rise office building—the uses to which land may be lawfully put are matters
that should be of great concern to an entrepreneur. Virtually every incorporated city, town,
village, and county has adopted zoning regulations that permit only certain business
activities in certain zones. The Zoning Office, Land Use Office, or other so-titled agency has
zoning maps and regulations that must be examined to determine if your business is
permitted at your desired location. Violation of land use regulations can shut down your
business with little or no recourse. At the very least, it will cause an expensive and
protracted interruption of that business.

 Building and Fire Codes

Often when applying for a local license, a business is subjected to inspection by the
fire department and building code officials. The fire department wants to know if
you are doing anything that could be a potential fire or chemical hazard and
whether exits are adequate and marked properly, fire extinguishers are present, and
appropriate materials are used for fire retardant purposes. It also wants to know if
the building meets all fire codes. The building inspection department may inspect
the property to make sure it is safe for the planned use and in compliance with the
building code.

 Taxation
The IRS wants to know where a business is and what it does. Most entrepreneurs
must file form SS-4 with the IRS to register the business. If a sole proprietor has no
employees, an SS-4 form may not be required. Upon filing the form, the owner will
receive an employer’s kit containing information about the types of taxes owed,
when to pay them, where to pay them, and how to compute the amounts due.

If the business has employees, the business must withhold portions of each
employee’s earnings and contribute the employer’s share as well. These funds are
then deposited to special accounts at designated banking facilities. The regulations
regarding withheld wages are very strict and must be complied with. Failure to
make the required deposits in a timely manner usually brings swift action by the
government. One of the primary requirements of many state governments is that
businesses collect sales tax from their customers. Although most states have a sales
tax, the method of each state for handling the tax differs. Some states tax certain
products and services differently

 Labor Code of the Philippines (Presidential Decree No. 442) – is the law that governs
employment practices and labor relations in the Philippines.
 Barangay Micro Business Enterprises (BMBEs) Act of 2002 (R.A. No. 9178) – a law
that promotes the establishment of Barangay Micro Business Enterprises (BMBEs)
 in the Philippines, and provides incentives and benefits such as income tax
exemption and access to financial, infrastructural, marketing, and knowledge
support from the government.

 Insurance Act of the Philippines, as amended – the law that governs the insurance
business and insurance transactions in the Philippines.
 Foreign Investments Act of 1991 (R.A. No. 7042) – the law that governs foreign
investments in the Philippines.
 Anti-Violence Against Women and Children Act of 2004 (R.A. 9262) – a law that
protects women and children in the workplace.
 Consumer Act of the Philippines (Republic Act No. 7394) – The law that protects the
interest of the consumers in the Philippines, promote their general welfare, and
establish standards of conduct for business and industry.
 Electronic Commerce Act of 2000 (R.A. 8792) – an act providing for the recognition
and use of electronic commercial and non- commercial transactions, penalties for
the unlawful use thereof, and for other purposes.
 Social Security Act of 1997 (R.A. No. 8282) – the law that mandates employers to
register their business and their employees with the Social Security System (SSS).
 National Health Insurance Act of 1995 (R.A. No. 7875) – the act that mandates
employers to register their business and their employees with the Philippine Health
Insurance Corporation or PhilHealth.
 Home Development Mutual Fund Law of 2009 (R.A. No. 9679) – the act that
mandates employers to register their business and their employees with the Pag-
Ibig Fund (HDMF).
 LABOR MARKET CONDITIONS

Currently, about 44.1 million people out of the 70.9 million – aged 15 years and above – are
in the labor force. This is approximately 62.2 percent labor force participation rate. Such
high labor productivity is greatly attributed to the Philippines’ high literacy rate which
stands at around 96.6 percent

The Philippines has a traditional employment structure with services being the largest
employer, followed by agriculture, and industry being the smallest. In January 2018, five in
ten of the total employed were in the services sector, whereas employment in the industrial
sector grew from by 0.7 percentage points to 18.1 percent. Agriculture contributed to 26
percent of the employment share, employing an additional 841,000 workers.

The Philippines Statistics Authority (PSA) data also shows three in every five, or 61.2
percent, of the total employed persons, were salaried. Some 27.6 percent were self-
employed, while 3.5 percent were employers in own family-operated farms or
businesses, and 7.7 percent were unpaid family workers.

The data in the labor force survey shows that CALABARZON (Region IVA), National Capital
Region (NCR) and Central Luzon (Region III) account for the largest share in the labor force
at 14.2, 12.6, and 10.8 percent respectively. Central Visayas (Region VII) and Western
Visayas (Region VI) follow at 7.6 percent.

The average labor force participation is the highest in the Northern Mindanao (Region X) at
72 percent followed by Caraga and Cagayan Valley (Region II) at 67 and 65.3 percent
respectively. Regions with the lowest participation rates are Autonomous Region of Muslim
Mindanao and Zamboanga Peninsula (Region IX) at 46.1 and 59.3 percent respectively.

According to the PSA, one in every four employed persons are engaged in elementary
occupations, that is 27.6 percent of the total employed population. Elementary occupations
involve unskilled labor, such as street vendors, construction site workers, cleaners,
domestic helpers and farm hands.
 PAY STRUCTURE

ACCOUNTING MINIMUM MIDPOINT MAXIMUM

CLERK 1
Hourly rate 71.07 81.72 92.39
Daily rate 568.59 653.80 739.12
Monthly rate 11,893.00 13,675.00 15,460.00

ACCOUNTING MINIMUM MIDPOINT MAXIMUM

CLERK 2
Hourly rate 76.52 89.15 101.80
Daily rate 612.19 713.20 814.21
Monthly rate 12,805 14,917.8 17,030.56

ACCOUNTING MINIMUM MIDPOINT MAXIMUM

CLERK 3
Hourly rate 81.65 95.94 110.23
Daily rate 653.21 767.52 881.83
Monthly rate 13,663 16,053.96 18,444.94

SALES CLERK 1 MINIMUM MIDPOINT MAXIMUM

Hourly rate 33.75 35.44 37.12
Daily rate 270.00 283.50 297.00
Monthly rate 5,647.50 5,929.87 6,212.25

SALES CLERK 2 MINIMUM MIDPOINT MAXIMUM

Hourly rate 37.50 40.31 43.12
Daily rate 300.00 322.50 345.00
Monthly rate 6,275.00 745.62 7,216.25

SALES CLERK 3 MINIMUM MIDPOINT MAXIMUM

Hourly rate 40.62 44.67 48.75
Daily rate 325.00 357.50 390.00
Monthly rate 6,797.91 7,477.71 8,115.75
SALES AGENT MINIMUM MIDPOINT MAXIMUM
Hourly rate 95.41 113.54 131.66
Daily rate 763.27 908.30 1,053.37
Monthly rate 15,965.00 18,998.61 22,031.73

SALES SUPERVISOR MINIMUM MIDPOINT MAXIMUM

1
Hourly rate 111.97 134.36 156.75
Daily rate 895.74 1,074.90 1,254.00
Monthly rate 18,736.00 22,483.15 263,229.50

SALES SUPERVISOR MINIMUM MIDPOINT MAXIMUM

2
Hourly rate 117.13 141.14 165.15
Daily rate 937.00 1,129.12 1,321.24
Monthly rate 19,600.00 23,617.46 27,634.42

GENERAL MINIMUM MIDPOINT MAXIMUM

MANAGER
Hourly rate 149.40 181.52 213.64
Daily rate 1,195.20 4,452.18 1,709.16
Monthly rate 25,000 30,374.76 35,749.93
 ADMINISTRATIVE POLICY

While every organization has different needs, different priorities, and different guidelines
they need to guide employee behavior, These policies, procedures, and checklists
successfully recognize the limit between providing employees proper guidance for
appropriate behavior at work and draw a line between that and employee lives outside of
the workplace.

 Absenteeism and Tardiness Policy

 Access to Personnel Records
 Amendments to Handbook Policy Sample
 Disabilities Act Requirements
 Armed Services Leave Policy
 Benefits Options
 Benefits Package: Comprehensive Components
 Bereavement Leave Policy
 Breaks and Lunch Requirements
 Breast Feeding Accommodation Policy
 Business Dress Code
 Cell Phone Policy
 Code of Conduct Outline
 Concealed Weapons Policy
 Confidentiality Agreement
 Counseling Record for Disciplinary Warning Form
 Progressive Discipline
 Discipline Warning Form: Counseling Record for Disciplinary Warning
 Drug-free Workplace (Policy Components)
 Drug Testing/Screening Policy Development
 Employee Handbook Introduction and Purpose
 Employee Medical File Contents
 Employee Payroll File Contents
 Employee Personnel File Contents
 Employment at Will Sample Policy
 Employment Discrimination Guidelines
 Employment References Policy Sample
 Ethics Code Outline
 Fair Labor Standards Act (FLSA)
 Family and Medical Leave Act (FMLA)
 Fraternization Policy
 Funeral Leave
 Gift Policy
 Handbooks
 Harassment Policy: Aids/HIV
 Harassment Investigation Steps
 Health and Safety and Environmental
 Internet and Email Policy
 Investigation Steps
 Jury Duty Policy
 Lactation Accommodation Policy
 Medical File Contents
 No Smoking Policy
 Open Door Policy: Policy Sample
 Open Door Policies
 Paid Holiday Schedule
 Paid Personal Days Policy
 Paid Sick Days Policy
 Paid Time Off (PTO) Policy
 Paid Vacation Days Policy
 Personnel File Policy
 Personnel File Access Policy
 Personnel File Contents
 Phone (Cell) Policy Sample for Workplaces
 Policy Receipt Acknowledgement Sample
 Progressive Discipline Steps
 Sexual Harassment Complaint: How to Address
 Sick Leave Policy
 Smoke-Free Workplace Policy
 Tardiness and Absenteeism Policy
 Telephone Use Policy for a Manufacturing Facility
 Vacation Days Policy
 Weapons (Concealed) Sample Policy
 STRATEGIES TO RETAIN EMPLOYEES

 Salary And Benefits Must Be Competitive

A recent survey of people in recruitment, HR, and hiring managers found that for
45% of employees who quit, the top reason is salary. Is it always about the money.
According to a collection of recent surveys on employee retention, only 24% of
“Generation X” employees say that financial stability motivates them to stay in a job.
Yet 56% of employees say that a health care and insurance concern keeps them in
their job. Benefits that are actually beneficial matter. Money matters. What you offer
your employees in this area must be comparable to other businesses in your
industry in your region.

 Relaxation Time
Allow employees the chance to catch their breath from one assignment to the next with
the help of team-building activities or mini break periods over the course of the day.
Be generous with time off. Despite the hard economy, provide sufficient time for sick
days, family vacations, new babies, etc. Pacing workflow can be highly beneficial to
enduring employee relationships.

 Reward
The rewards you give your employees should speak to their emotional needs and
should go beyond their monetary compensation. Recognition in front of the
company, company and department parties, service projects, lunches with the boss,
logo clothing, handwritten notes, etc., can all contribute to the positive culture of the
company and can be good morale builders as well.

 Respect
Employees want to know they are respected and appreciated. As the saying goes,
people may readily forget the things that you said, but they will always remember
the way you made them feel.

 Responsibility
Show your employees you trust them by giving them responsibilities that allow
them to grow. Encourage them to gain new skills. Provide ample continuing
education opportunities. Hire from within wherever possible, and give generous
promotions at appropriate times.