STAFF REMUNERATION

MEANING

remuneration refers to the wage or salary paid to workers in cash or kind in consideration of the services
rendered by them

METHODS OF WAGE PAYMENT

Time rate system

under this system which is a directly linked with the time spent by workers on the job the workers are paid
pre-determined amount each are day, week or month irrespective of the output.

ADVANTAGES DISADVANTAGES
simplicity: time system is very easy to understand premium on ine>iciency: the time system makes
and calculate no distinction between eKicient and ineKicient
workers therefore eKiciency of worker is likely to
decline under the system.
reduced wastage: the time rates system results in lack of incentives: this system provides no
lesser wastage of resources as workers do not hurry inducement to work hard and produce more.
in speeding up work and rough handling of
machinery is avoided
higher quality of work: as wages are related to time increased supervision: to ensure that workers do
and not quantity workers can show their craftsman not while away that time close supervision
ship and skill this leads to improvement in quality of becomes necessary and cost increases
output
acceptance by trade union: trade unions prefer uncertain labour cost: the wage bill is fixed while
crime rate system because it facilitates workers the quantity of output fluctuates from time to time
unity. therefore it is diKicult to accurately calculate labour
cost per unit

Piece-Rate system

under the system wages payable to an employee a directly related to the quantity of work done by him, the
work may be measured in terms of unit of output.

ADVANTAGES DISADVANTAGES
incentive: the system provides motivation to di>icult: this system is diKicult and workers cannot
workers because reward is directly linked with eKort understand it easily
economy: as workers are themselves interested decline in quality: the quality of work suKers
introducing more the need for supervision is because workers try to maximum the quantity of
reduced output
modernisation: workers co-operate with opposition by trade unions: trade unions oppose
management in instalment of new better equipment price rate system because it becomes the solidarity
and in other measures design to improve eKiciency of workers
 employee development: ineKicient workers can be wastage of resources: in hurry to produce workers
easily identified on the basis of the performance make rough use of materials and machinery

BASIS PAYSLIP PAYROLL

Meaning A slip containing full details of total wages A sheet showing full information relating to
deduction made and net wages paid is the pay of all the employees working in the
known as the payslip. organisation is known as a payslip

scope Used by individual employee Entire organisation

purpose Verifying income for employees Ensuring employees are paid correctly and on
time
components Individual employee Basic pay, bonus, All employee salaries, taxes, bonuses, and
deductions other payments

**SPECIMEN (PG-107 AND PG-108)**

STAFF BENEFITS

under the governments provident funds and miscellaneous provisions act 1952 every employee is entitled to
become the member of the provident fund scheme. under this contributary provident fund scheme both
employee and as employer make monthly contributions to the employee’s provident fund the total
contributions are invested in the prescribed manner and the accumulated amount standing credit in the
fund is paid to the employee on retirement, death or resignation. the employee may get advances and
withdraw money from his PF after 15 years of continuous service.

NATIONAL PENSION SYSTEM

under the provident funds and miscellaneous provision act 1952 the Government of India has created a
family pension scheme for its employees. the scheme has objective of providing long term monthly
pension to the employee after retirement and to his family after his or her death.

GROUP INSURANCE

group insurance is of two types group life insurance and group medical insurance. In case of group
insurance one policy is taken for a specific group of employees both the employer and employee pay
premium.
In case of group medical insurance, if an employee is hospitalised the insurance company based the
hospital bill up to the specified amount.
Group insurance is the scheme which provides insurance cover on the lives of several persons under 1
insurance policy or contract it is provided to employees working under one employer.
Group insurance is very cheap for employees, and they have to pay very small amount of premium.

ENCASHMENT OF LEAVE

at the time of retirement and employee can encash his accumulated earned leaves, for every year of
completed service an employee can get 15 days leave, which can be accumulated for up to 300 days and
if the employee has accumulated up to 300 days of leave, he will be given cash for 300 days working.
GRATUITY

gratuity is a terminal benefit given to an employee who lives the organisation after working for a specified
number of years or on the retirement of the employee. initially gratuity was a voluntary payment made by
the employer but now under the payment of gratuity act 1972 gravity is able to employees on many occasions

TYPES OF LEAVE

1. Casual leave
8 to 12 days of casual leave is permissible in a calendar year. Casual leave is not a recognised form
of leave and is not subject to any rules made by the government of India. Casual leaves are
essentially intended for short periods normally a casual leave should not be granted for more than
5 days at a time. Casual leave can be taken for a half day also.

2. Medical/sick leave
Medical certificate from an authorised medical attendant is necessary for grant of a medical or a
sick leave this leave may be combined with any other kind of leave due and admissible provided total
period of leave does not exceed 28 months.

3. Earned/privilege leave
Earned leave is 'earned' by duty. An employee is awarded 15 days of earned leave after a year of
service. This leave can be encashed(total) or can be availed at a maximum number of 180 days at a
time.

4. Maternity leave
Maternity leave is granted to women Government employees. A pregnant women with less than
two surviving children is admissible to 180 days of maternity leave. In case of a miscarriage or
abortion a total of 45 days in their entire service is granted. maternity leave cannot be combined
with any other leave and full pay is granted during this period.

5. Paternity leave
A male employee with less than two surviving children may be granted paternity leave for a period of
15 days during the confinement of his wife during the period of such a leave he shall be paid his usual
pay. This type of leave may not leave may be combined with other kinds of leave.

6. Leave without pay

Extraordinary leave is granted to a government service when no other leave is admissible, but the
government servant applies in writing for extraordinary leave no pay given with such leaves.

7. Study leave
Study leave maybe granted to all Government employees but not less than 5 years of service the
course of which should be certified and to be definite advantage to government from the point of
view of public interest. Maximum of 24 months of leave is sanctioned in such a case.