Basically, benefits are rights that must be fulfille by the company for all workers. This is what is considere by many to be the priority of job seekers.
However, not all companies are willing to provide benefits. Some companies will even only provide basic salary.
With this in mind, on this occasion we will discuss in full the benefits that you should know about.
Definition of Allowance Is
According to the official Investopeia page , employee allowances or benefits are part of work compensation.
The meaning of work compensation is the arrangement for providing compensation to employees which is useful for increasing their productivity while working.
This form of compensation can be given directly in cash or indirectly in the form of non-financial rewards, such as transportation costs, health care, or employee savings.
In addition, the company can also set compensation in the form of fitness guarantees, such as gym memberships, which will have an impact on the overall health of employees.
Employees can use their benefits for other additional benefits, such as dental insurance, etc.
The purpose of providing benefits is so that the company can continue to retain employees as part of the organizational structure for a long period of time.
In fact, some benefits can seem more attractive than the basic salary or wage provide by the company.
Employment Benefits Regulations According to Law in Indonesia
You nee to know that invitations are not always regulate in legislation. In fact, these regulations mostly depend on the policies of each company institution.
However, there are several rules, as state in Law No. 13 Article 99, which regulates the existence of social security for all workers.
In addition, there is also the Regulation of the Minister of Manpower and Transmigration No. PER.04/MEN/1994 which regulates Religious THR.
Base on the law above, the company must provide Religious THR for employees who have worke for 3 months or more.
Meanwhile, for employees who have worke for 12 months, the THR amount is equivalent to one month’s salary.
Meanwhile, for employees whose work period is less than 12 months, the THR calculation is the number of months of work divide by 12 then multiplie by the amount of one month’s salary.
Furthermore, there are also laws that regulate benefits if employees work overtime.
As reporte on the Hukumonline page , these regulations are state in Article 77 paragraphs (1), (2), and (3) of Law Number 13 of 2003 concerning Manpower.
It explains that the company must enforce working hours. If it turns out that employees have done their duties more than working hours, then the company must provide overtime pay to employees.
Fixe and Non-Fixe Allowances
There are at least three wage components that are the rights of every employee according to the Circular of the Minister of Manpower of the Republic of Indonesia No. SE-07/MEN/1990 of 1990.
The three components of the allowance are basic wages, fixe allowances and non-fixe allowances.
First, fixe allowance is a compensation that is given routinely in the same time unit as the basic salary payment. For example, the cost of family nees, housing, and employee residence.
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Second, non-fixe allowances are allowances that are not absolute in nature. Ad can be given directly or indirectly.
A simple example is compensation for employee accommodation, such as meal costs, or transportation paid according to the number of employee attendances.
8 Types of Work Benefits
There are many types of benefits, and each type of benefit can provide a different function for employees.
Some things that you should always pay attention to are that all types of benefits that we describe below have been adjuste to the general nees of all workers.
The various types of allowances are as follows:
1. Position Allowance
Position allowance is an allowance given to every employee who already has a high position in a company.
The purpose of this allowance is because job holders have to bear a heavier burden than employees at lower levels.
2. General Compensation
The next type of allowance is general compensation. This type of allowance will be given to those who do not hold high positions at all.
In short, general compensation is a sign of appreciation from the company for the employee’s work performance while they are working in the office.
3. Family Allowance
Family allowance is a type of compensation provide korea whatsapp resources by the company for employees who are marrie.
An example is the wife’s compensation given if the employee’s wife does not have a job.
Another example is the child allowance given to employees who have children under the age of 21 and do not yet have a job.
Difference Between Salary and Allowances
Salary is a fixe amount of money given to an employee in return for work done over a specific period of time, such as monthly or hourly.
While allowances are additional payments or non-salary benefits given to employees in addition to their basic salary.
Benefits can be in the form of cash, benefits, or facilities phone number bl provide to employees in addition to their work.
Conclusion
Base on the complete explanation above, we can conclude that allowances are monetary rewards. Give by the company outside of the basic salary.
In addition, allowances are additional costs to support the work of each employee. Generally, allowances will be as an addition to the basic salary or can be include in the company’s basic salary.
