T10: Pay Administration - Local practices

Question 1

What is Pay Administration?

Answer 1

It provides structure to compensation initiatives aligning with the legal requirements.

Question 2

What are the four Pay Adm areas?

Answer 2

Employment Act
Retirement and Re-deployment Act (RRA)
Workman Injury Compensation Act (WICA)
Skills Development Levy (SDL)

Question 3

IMPT- The main objectives of the flexible wage system (FWS) are..

Answer 3

• remain cost-competitive w competitors
• link company’s salary payment to its profitability
• motivate staff be rewarding for performance

Question 4

IMPT- The Five principles of FWS

Answer 4

• Wages should reflect value of job
• Wage increase should lag behind productivity growth
• Wage increase should consider company’s profitability and indv worker’s performance
• Wage increase should not be on permanent basis
• Should be stability in worker’s income

Question 5

IMPT- Recommended wage structure by sg Gov is

Answer 5

70 (basic wage) : 10 (monthly variable) : 20 (annual variable components)

Question 6

IMPT- FWS: Basic Wage

Answer 6

Reflects value of job and provides income stability to the worker

(laws that govern is employment act and legislations)

Question 7

IMPT- Monthly Variable Component (MVC) objective is..

Answer 7

To make wage system more flexible to cope w rapidly changing biz conditions

Monthly basic salary (100%) = Monthly FC (90%) + MVC (10%)

Question 8

Implementations to cope w sudden and drastic deterioration off economic and biz conditions bla bla got 4

Answer 8

shorter workweeks

temporary layoffs

taking paid or no-pay leave

flexible work schedules

Question 9

IMPT- FWS: Annual Variable Component (AVC)

Answer 9

Made up of Annual Wage Supplement (AWS) aka 13 month pay and other annual bonuses, which are one-time payments

Question 10

IMPT - for pay calculations, the percentages of MVC and AVC are…

Answer 10

MVC is 10% of the monthly pay

AVC is 20% of the annual wages or 1-3 months salary