BATCH: 2021 – 2023

SEMESTER: 3

CIA-2
A typical compensation package
of a benchmark job.

SUBMITTED TO: Dr.Uma Warrier

Specialization: - FHRM

Submitted By: -

NAME USN NUMBER

Nancy Jallundhra 21MBAR0554
I D Deepak 21MBAR0089

Jowan Changeppa 21MBAR0101

Compensation and Benefit: -

Compensation and Benefits in HRM refer to the salary,

monetary, and as well as non-monetary privileges provided to
the employees at the workplace by the organization. It is a
primary tool of the Human Resource Managers to bring out the
best potential of the employees in their work. It works in a way
– ‘Better is the compensation & benefits, better is the
performances and retention!’ From internal motivation to the
higher level of productivity, Compensation and Benefits does it
all!
 Compensation Package Breakdown for Associate Talent Scout

NAME: - Bivek Shome

EMPLOYEE ID: - E14554

DESIGNATION: - Talent Partner

DATE OF JOINING: - 1st Sept 2018

LOCATION: - Bangalore

CONTACT INFORMATION: - +91 9742726115

Compansation Breakup sheet

Monthly Annual
Column1 Components (Rs.) (Rs.)
1 Base Pay 89,000 1,068,000
2 Flexible salary * 154,439 1,853,268
Total (A) 243,439 2,921,268
3 Social security **
3.1 Provident Fund (Company Contribution) 10,680 128,160
3.2 Gratuity (Company Contribution) 4,281 51,372
3.3 Super Annuation Fund (Employee Contribution)
Total (B) 14,961 179,532
4 Total Fixed salary (A+B) 258,400 3,100,800
5 Performance Bonus per annum 459,200
6 Total Cost (A+B+C) 3,560,000

Total Cost 3,560,000

Superannuation
Grade No Grade

Gross Salary Monthly 243,439

Net Salary (Including Meal Card & Before
Income Tax) 232,559
Net Salary (Including Meal Card &
Superannuation before Tax) 232,559
Net salary before Income tax - Monthly 231,259
 Performance Bonus as % of
12.90% Total Cost

Flexible Salary Components for Allocation *

1. House Rent Allowance (Max 100% of monthly Base Pay)

2. Conveyance allowance.
3. Education allowance upto Rs. 100 per child for maximum 2 children per month.
4. Hostel Allowance upto Rs. 300 per child for maximum 2 children per month.
5. Leave Travel Allowance (10% of Annual Fixed Cost or a maximum of Rs 200000/- whichever is
lower)
6. Meal Card for Rs. 1300/- issued on monthly basis.

Social Security Component **

Supperannuation Fund 15% of the basic will adjust from flexible salary if opted.

The above chart is a representation of the salary structure of Mr. Bivek Shome, whose
designation in the organization is Talent Partner.

His roles and responsibilities in the organization are:-

1. Sourcing Candidates from various portals and referrals.

2. Stakeholder Management.
3. Screening the candidates via call or face to face.
4. Scheduling technical rounds with the right panellist and taking up HR rounds.
5. Once the candidate is selected, Collecting and Verifying the authenticity of all the
documents.
6. Onboarding procedures.
 Annual (Rs.)

Base Pay
Flexible salary
Total (A)
Social security
Provident Fund (Company Contribution)
Gratuity (Company Contribution)

Monthly(Rs.)

Base Pay

Flexible salary

Total (A)

Social security

Provident Fund (Company Contribution)

Gratuity (Company Contribution)

Different Components of Employee Compensation

Employees within an organization are subject to various benefits and organizations based on
employee skills, experience, performance, job level, etc. The different components of employee
compensation include basic pay, HRA, DA, special allowances, etc.

Basic Salary

The basic pay is the basic salary withdrawn by an employee in an organization. It depends on the
company’s policies and the laws of the company. It is that part of the salary that is taxed.

House Rent Allowance (HRA)

Few companies provide their employees with accommodation or home rent allowances. This is in
addition to the paid salary. It is generally calculated based on the basic salary obtained by an
employee.

Dearness Allowance (DA)

In some places where there is an inflation in the price of goods and services, dearness allowance
helps curb the impact of the price difference. This component of employee compensation helps the
employees adapt to the changes in standard of living.

Travelling Allowance

Specific organizations provide travel allowances when an employee needs to travel. It may or may
not be included in the basic salary. Its calculation differs from company to company and requires
proof of travel. Often employees use their funds to travel, which is later reimbursed by the
company.

Other Special Allowances

Other special allowances are the monetary benefit given to the employee above the basic salary to
meet specific requirements. The employers offer these additional benefits for the meeting
expenditures, etc.

Variable Pay

Variable pay is that portion of the salary determined based on employee performance. When an
employee hits a target or does overtime, variable pay is given in incentives, bonuses, or commissions.
It is given out for the additional contribution beyond an employee’s workload.

Stock Options

It is a part of employee compensation where companies employees and executives of the company
are granted equity. These shares are issued by the company and cannot be sold. It is generally
associated with a new company and is awarded to the employees as an incentive for working hard
towards the company’s growth. In other words, it can also be said that the employees own a part of
the organization.

Components of Employee Benefits

Employee benefits can be monetary, non-monetary, or both. Employee benefits help in

attracting and retaining the right talent in a company. These benefits can be paid time off,
medical insurances, etc.

Paid Time Off

It is an essential component of employee benefits where employees can still receive a salary
when they take leave or vacation. Also, according to the employee’s position, they can receive a
privilege leave.

Medical Insurance

It is another part of employee benefits and compensation and includes health insurance, family
health insurance, hospital cover, etc. A few companies also cover the death of an employee and
provide financial assistance to the family members of the deceased employee.

Fringe Benefits
It is a non-monetary benefit and covers educational assistance, childcare, flexible healthcare
expenditures, etc. It may include benefits such as a company car, gym membership, etc. Fringe
benefits may also provide entertainment allowances, discounted travel tickets, family vacation
packages, etc.

Loyalty and Retirement Benefits

A retirement plan as part of the employee benefits package is an essential factor in employee
loyalty. By offering retirement benefits, an organization maximizes their success rate; it can
become easy to get top talents on the door and retain them in the company.