COMPENSATION PLAN AT INDIAN

AIRWAYS

PRESENTED BY:

NAINA GUPTA

COMPENSATION PLANNING

Compensation planning refers to designing and implementing total compensation package with a systematic approach to provide value to employees in exchange for work performance

Compensation planning is an act of providing monetary value to employees in exchange for work performed.

Compensation planning may achieve several purposes in recruitment, job performance, and job satisfaction.

TYPES OF COMPENSATION

FACTORS INFLUENCING THE DETERMINATION OF

COMPENSATION

Statutory requirementsEmployee unionsPolicy of the organizationAbility to payEquity-internal and externalDemand supply gap in labour market

COMPENSATION PROVIDED BY INDIAN AIRWAYS

Salary & Bonus PlansCompetitive base salaries/raisesBonus programsFixed/variable compensation

Group Insurance ProgramsDisability Income InsuranceLife InsuranceCarve-Out programs

OTHER COMPENSATIONS ARE…

• Medical insurance• Family Benefit Scheme• Registered retirement saving plan• Staff Travel benefits (Rebated ticket for self and family members for domestic and international sectors)• Interline Tickets with leading International airline

CONTINUED…..• PROFIT SHARING PLAN• PERFECT ATTENDANCE PLAN• BUSINESS TRAVEL ACCIDENT

INSURANCE• VACCATION PAY• EDUCATION SUPPORT

ALLOWANCE• PROFESSIONAL SPECIALIST

ALLOWANCE

TYPES OF COMPENSATION PLAN

Equity based plan Cash based plan Qualified deferred compensation plan Non-qualified deferred compensation plan Straight salary plan Straight Commission plan Combination plan (salary + commission

plan) Profit based plan

CONSTITUENTS FOR COMPENSATION PLAN

Fringe Benefits:Fringe benefits include such benefits which are provided to the employees ,flight attendants either having long-term impact like provident fund, gratuity, pension; or occurrence of certain events like medical benefits, accident relief, health and life insurance; or facilitation in performance of job like uniforms, Canteens, recreation, etc.Benefits to women pilots

These are normally provided to personnel either to facilitate their job performance or to retain them in the organization. Such perquisites include company cab, club membership, free residential accommodation, paid holiday trips, stock options, etc.

Incentives:Incentives are the additional payment to employees besides the payment of wages and salaries. Often these are linked with productivity, either in terms of higher production or cost saving or both.Can be administered individually and for groupsAdditional compensation having immediate effect and no future liability.

PERQUISITE

LAWS GOVERNING AND AFFECTING THE TYPE OF COMPENSATION PLAN

Minimum Wages Act (discuss – minimum remuneration, its

heads) Income Tax Act (discuss – heads which provide tax relief)

Equal Remuneration Act Payment of Wages Act (discuss – permissible deductions) Acts on social securities (PF, Bonus, Gratuity, Employee

Compensation) Laws as per Airport authority of INDIA ( working in

airports) Fair and equal compensation as per article 26 2(a) Tax exemption on pension earnings as per article 199 (3)

Compensation distribution by AIRPORT AUTHORITY OF INDIA

Recently, AIRPORT AUTHORITY OF INDIA issued

MEDICAL CUM IDENTITY Card to its retired employees

It has even extended INDOOR MEDICAL TREATMENT to its retired employees at concessional basis

It has even provided HOLIDAY HOME FACILITY to its retired employees.

Continued…

AIA even announced payment of honorarium to its employees for every month

AIA provides PROFICIENCY ALLOWANC E to its employees.

AIA GROUP GRATUITY FUND TRUST grants gratuity to its employees

INCIDENT…

RECENTLY, AROUND 18 EX- AIR INDIA EMPLOYEES WERE RETRENCHED FROM THEIR SINGAPORE OFFICE AND, THEY RECEIVED A SUM OF AMOUNT LATER ON AFTER THE CASE WAS GOVERNED BY INDUSTRIAL ARIBITRATION COURT

Women pilots and attendants at the flight are protected through various compensation plans.

CONTINUED… AIR DECCAN provides 20%

compensation and 80% of variable pay to its employees in addition to other incentives

IT Even provides CHILD LIFE INSURANCE AND CHILD ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) To Its Pilots And Flight Attendants.

AIR INDIA even provides free lunch to its employees within working premises.