COMPENSATION & SALARY STRUCTURE IN PRIVATE SECTOR

SALARY STRUCTURE

HRM department prepare all documentations and their summary affecting salaries, and
forward payroll section for processing that includes:

 Recruits, transferees
 Promotion and increments
 Allowances, bonuses and incentives
 Discipline
 Review the all documents affecting salaries.
 Entry of all salaries based on Salary, allowances, deductions and
Commissions.

BONUSES

The employee may receive 1 to 3 month bonus subject to evaluation of accomplished

objectives.

BENEFITS

 Medical care

 Life insurance

 Vacations

 Relocation

 EOI

 Recreation

 Club Policy Travel

  Education assistance policy

 Mobile phone

 Business mobile phone policy

EXPENSE CLAIM

 Expense claims are the expenses made b employees i.e; for business travel, night stays
on business tour.
 HR department pay these claims with their salary.

OVERTIME CLAIM

 When a employee works more than regular hour he claims for amount to be paid
which he receives next month with his salary.

MEDICAL CLAIM

 Different medical services are provided to employees according to hierarchy level

MOBILE EXPENSE

 Company approves a pay for making long duration business calls to its employees.
 COMPENSATION & SALARY STRUCTURE IN PUBLIC SECTOR
Public employees with reference to their income are divided into following groups:

 Civil servants receiving their pay and allowances on normal rates.

 Civil servants receiving their pay on special enhanced rate.

 Civil servants deployed on projects.

 Government servants working in public sector entitles on scale.

employment in the public sector is generally viewed as an attractive option in Pakistan not
only because of the wage differentials documented in this study but also as a consequence of
the perquisites, It has many benefits such as :

 Housing

 , free telephone provision for civil servants,

 job security,

 free medical benefits,.

 Pakistan could be interpreted as providing rent seeking opportunities for some

PAY STRUCURE

 The pay structure comprises of twenty-two! basic pay scales (BPS) adopted by the 1972
Civil Services Reform Commission.

 The absolute difference between the minimum salaries of grades 1-10 remains less than
one hundred rupees, except for grade 9.
 INCREMENTS

Since the civil service involves a lifelong !career with

the government it is considered ar increments to the
obligatory to provide employees to enhance their
earnings with rising age and family responsibilities, regardless of any change in duties.
Secondly it is believed that these increments! contribute to efficiency and help retain
experienced workers.

The regular allowance structure (Housing)

Housing facility to the federal government! Employees fall into three categories;

i) those who make their own living arrangements instead of renting house on
government account and get 50 percent of the basic salary as housing subsidy;

ii) those who requisite houses in the open market according to the rental ceiling
allowed by the government for each grade; and

iii) those who are provided government accommodation.

HOUSE RENT

 Valuable cash allowance House rent is still the most !for employees renting houses, but
this facility pales in comparison to the physical government housing

 . Grade-22 officer renting his own house or any house !at the official entitlement in
Islamabad gets Rs.16,962/- but the government house, for the same grade has an
imputed rental value of around Rs.200,000 in any sector of Islamabad.

CONVEYANCE ALLOWANCE
 Conveyance allowance, its The absolute amount of co !rate of increase over time, and
the allowance as percentage of basic salary for all grades