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Compensation and Benefit at PTCLCase Study

Submitted Date:

2/4/2014

Group Members:

Osman Bhatti 11123027

Arslan Hanif 11123010

Submi tted to:

Sir Naeem Hayat

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Compensation and Benefits at PTCLAt present PTCL is following Narrow Branding structure, which is not very common at

corporate world. PTCL is undergoing transformational phase and practices/ processes are being

redesigning and restructuring. The Organization has a culture of resistance to change and after

lot of efforts only little changes have been enforced by new management.

I ntroduction to PTCL

The telecommunications industry is at the forefront of the information age delivering voice, data,

graphics and video at ever increasing speeds and in an increasing number of ways. Whereas wire

line telephone communication was once the primary service of the industry, wireless

communication services and cable and satellite program distribution make up an increasing share

of the industry.

The largest sector of the telecommunications industry continues to be made up of wired

telecommunications carriers. Establishments in this sector mainly provide telephone service via

wires and cables that connect customers premises to central offices maintained by

telecommunications companies. The central offices contain switching equipment that routes

content to its final destination or to another switching center that determines the most efficient

route for the content to take. While voice used to be the main type of data transmitted over the

wires, wired telecommunications service now includes the transmission of all types of graphic,

video, and electronic data mainly over the Internet.

Wireless telecommunications carriers are deploying several new technologies to allow faster data

transmission and better Internet access that should make them competitive with wire linecarriers. One technology is called third generation (3G) wireless access. With this technology,

wireless carriers plan to sell music, videos, and other exclusive content that can be downloaded

and played on phones designed for 3G technologies. Wireless carriers are developing the next

generation of technologies that will surpass 3G with even faster data transmission. Another

technology is called fixed wireless service, which involves connecting the telephone and/or

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Salient features of Existing Compensation & Benefi t at PTCL

a. SalaryIt is paid to employees on monthly basis and it is termed as fixed pay. PTCL is stillfollowing Broad Banding salary structure in their organization.

b. Performance IncentivesEvery Employee is paid performance incentive on Monthly Basis and it ranges from 1- 10%

of basic salary.

c. Eid BonusIt is paid to Employees for celebrating their religious festivals. The amount for Eid Bonus is

Rs. 10000/.

d. Accommodation FacilityAll employees are provided with accommodation in PTCL employee colonies.

e. House RequisitionIt is paid to Employees who does not avail PTCL accommodation. It is 40% of Employee

basic salary.

f. Employee Medical FacilityMedical treatment and facility is provided to PTCL Employees. This includes

reimbursement of medical claims, medical allowance and Hospital indoor treatment. Well

reputed hospitals are kept on panel list of organization.

g. Education GrantEducation grant is accorded to Employees for education of their children on annual basis.

Managerial cadre gets Rs. 2500 per child and Non Managerial cadre gets Rs. 1400 for eachchild.

h. Merit AwardsThis grant is admissible to those PTCL employees, whose dependent Children gets postion

in Metric, Intermediate and Masters level.

i. Stipend Awardsj. This grant is for the children of PTCL employees, who are undergoing higher/ professional

education at well reputed institutions.

k. Marriage GrantOnly non managerial cadre is eligible for this grant. Rs 80000/ is paid to employee on eve of

her daughter marriage ceremony.

l. Hajj Scheme40 Hajj tickets are reserved for employees on lottery basis.

m. EOBIEOBI scheme has been introduced recently for PTCL employees. It is additional benefit for

employees along with pension scheme.

n. Group Provident Fund

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On monthly basis a Percentage of amounts are deducted from employee salary and it is paid

back on Retirement with 12% interest rate.

o. Leave Encashment180 Days leave encashment is accorded to employees on their retirement.

p. PensionPTCL is following Employee Pension Scheme in accordance to Pakistan Government

Regulations.

q. Additional Facilities Free internet service for Managerial Cadre. Free telephone facility at office and home for Managerial Cadre. Transport facility for All Employees.

The Di lemma

Existing pay and compensation system has very little association with individual/ Organizational

performance. It does not support high performance culture and HPWS is not possible. Keeping in

mind prevailing situation, it is very important that PTCL should immediately switch to Broad

Banding structure.