1. PAD214 INTRODUCTION TO PUBLIC PERSONNEL ADMINISTRATION
LESSON 11
EMPLOYEMENT BENEFITS AND SERVICES

2. OBJECTIVES OF THIS LECTURE
Upon completing this chapter student should be able to:
Understand the concept of employee benefits
Describe the purpose of benefit policy
Describe the determinant factors of compensation policy
Describe the methods to pay compensation
Understand the compensation policy in the public sector

3. EMPLOYMENT FRINGE BENEFITS
Employment fringe benefits embrace a broad range of benefits and services that employees receive as part of the total compensation package. Employments fringe benefits are indirect financial compensation which are usually extended as a condition of employment are not directly related to performance. Employment fringe benefits are all employer provided rewards and services other than wages or salaries and available to all employees regardless of seniority or performance.

4. The purposes of fringe benefits
Societal objectives – to provide security and lower the burden on society when facing employment uncertainties such as:
Health problems due to illness
Employment injuries due to accidents
Retirement
Termination or lay off

5. Organizational objectives-to keep organization competitive in recruiting and retaining employees.
Reduce fatigue
Discourage labour unrest
Satisfy employee objective
Reduce turnover
Increase employee productivity

6. Employee objective- to lower cost and increase availability
Insurance less expensive because employer may pay some or all the cost
Employees incentives and security

7. THE TYPES OF FRINGE BENEFITS
Mandatory or compulsory benefits - the government mandate (legally requires) certain benefits. An employer has no choices about offering the benefits in any way without getting approval from the government or change the existing laws. Eg:
Employee provident fund contribution (EPF)-as a retirement or pension benefits ( EPF act)
Social security contribution as a survivors and disability insurance benefits ( SOCSO act)

8. Time off eg:paid holiday such as annual leave, maternity leave , sick leave , rest leave ( Employment Act 1955)
Workmen compensation for protecting foreign workers employed in Malaysia – death and injuries.
Termination and lay-off compensation (Employment Act)

9. Non-mandatory or Voluntary benefits- in addition to the benefits required by law. An employer has en option whether to implement or not depend on the employer’s capability. Normally, is use as an incentives to employee ,eg:
Medical services
Loan services
Vacation package

10. MANAGING THE FRINGE BENEFITS
Regular government enforcement
Increase employee knowledge and right
Increase employee responsibility
Active trade union participation

11. PUBLIC SECTOR EMPLOYMENT BENEFITS
ANNUAL LEAVES & PUBLIC HOLIDAYS
MEDICAL BENEFITS
PENSION BENEFITS
GOVERNMENT LOAN (Housing and car)
STUDY LEAVE
METERNITY LEAVE

12. THAT ALL FOR TODAY SEE YOU AGAIN NEXT LECTURE LESSON 12 EMPLOYEMENT DISCIPLINE