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| 04 Employee Handbook: Compensation |
By:
Nellie Amirah Lim |
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4.0 COMPENSATION PACKAGE
4.1 Salary Calculation
4.1.1 Where a month by reason of salary adjustment effective on a day other than the first day of the month, the proportionate amount due in respect of each portion of the month shall be calculated on the following basis :-
Basic Salary x Number of days worked**
Number of days in the month
** include rest day and paid public holidays in that month
4.1.2 The basis as detailed in Para 4.1.1 shall also be used to ascertain the salary due in respect of a month during which employment commence or ends due to termination or resignation. When the last day of employment falls on a rest day or a paid public holiday, that day should be included in the calculation under “Number of days worked”.
4.1.3 Hourly rate of pay is calculated as follows :-
Salary x 12
52 x No. of hours worked per week**
** exclude meal breaks
4.1.4 Ordinary rate of pay is calculated as follows :-
Salary
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4.2 Salary Payment
4.2.1 All employees shall be paid their salary once a month not later than the seventh (7th) of the next month. Payment made is equivalent to the employee’s basic salary in addition to allowances, claims and overtime less all statutory deductions eg EPF, Socso, Income Tax etc.
4.2.2 Salaries shall be banked into the employee’s bank account with Malayan Banking Berhad.
4.2.3 No employee will be allowed to draw salary on behalf of another employee without producing the appropriate authority from the employee to whom the money is due. Payment issued under proxy shall be at the risk of the employee concerned and no claim for compensation of loss shall be considered.
4.3 Salary Scale
All employees shall be paid a competitive salary that commensurate with their qualifications, experience and skills and be guided by the salary scale drawn up by the Company for each grade.
4.4 Salary Review
4.4.1 Increment is not automatic but based on the satisfactory performance of the employee and the profitability of the Company’s business for that year.
4.4.2 The salary of an employee is subjected to review on an annual basis.
4.4.3 The annual increment date is 1st July of each year provided that the employee has been employed for not less than six (6) months in the preceding year and is confirmed in his appointment.
4.4.4 An employee may not be awarded any increment or his increment may be withheld or deferred if in the opinion of the Company, the work performance or conduct of such employee is unsatisfactory. The Company shall inform such employee of his faults or shortcomings and how he should correct them in writing. The increment so withheld or deferred may later be approved upon the improvement of his work performance and conduct to the satisfaction of the Company but without retrospective effect.
4.4.5 Salary increments are determined by a merit ratings through a performance review system.
4.5 Bonus
4.5.1 There is no contractual right for any employee to be paid bonus.
4.5.2 Employee who is confirmed in his appointment may be paid bonus at a rate to be determined by the Company based on the Company’s profitability and the employee’s performance and contribution towards the success of the Company for that year.
4.5.3 If paid, bonus shall be in proportion to the months of continuous service completed in that year and the employee must be in the employment of the Company at the time of payment of bonus.
4.5.4 No employee shall be entitled to any bonus in the event of dismissal or resignation to avoid dismissal at the time of payment of bonus.
4.5.5 Bonus payment shall be on basic salary only excluding overtime and allowances of any description.
4.6 Statutory Contributions and Deductions (EPF, Socso, Income Tax)
The necessary statutory contributions and deductions according to the gazetted prescribed rates for both the employee and the employer shall be made to the respective authorities by the Company.
4.7 Travel Advance
4.7.1 Employee who is travelling overseas may obtain a travel advance to cover accomodation, subsistence and travelling costs.
4.7.2 Request for advance shall be made on “HRD-TAF-012 : Travel Advance Form” and submitted to his HOD for approval at least two (2) weeks before the required date.
4.7.3 Employee who have been given travel advance should submit his claims within seven (7) days upon his return to office.
4.7.4 The Company reserve the right to reduce the amount of advance requested.
4.8 Claims
4.8.1 All claims shall be reimbursed on a monthly basis and paid in Ringgit Malaysia.
4.8.2 Claims incurred in any month will be reimbursed the next month through the payroll and banked into the employee’s bank account with Malayan Banking Berhad except for claims incurred for overseas trips which shall be reimbursed in the month the claims were incurred or within seven (7) days upon return to office if an advance has been given.
4.8.3 Employee shall list all his claims in chronological order in “HRD-ECF-013 : Expenses Claim Form” and submit to his HOD for approval not later than the 5th of the next month together with all required supporting bills and/or receipts.
4.8.4 Only approved claims submitted to HRD by the 10th of the next month will be processed . Late submission or claims not supported by the required bills or receipts will render the claims being invalid and the Company reserve the right not to reimburse the employee for such claims.
4.9 Overtime
4.9.1 All overtime worked shall be paid on a monthly basis.
4.9.2 Overtime incurred in any month will be paid the next month though the payroll and banked into the employee’s bank account with Malayan Banking Berhad.
4.10 Allowances
4.10.1 All allowances payable eg food, transport, perfect attendance and shift allowance shall be paid on a monthly basis.
4.10.2 Allowances due from the 16th of the previous month until the 15th of the current month will be paid through the current month payroll and banked into the employee’s bank account with Malayan Banking Berhad. |
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