Compensation and benefit packages - 100178

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Compensation and Benefits Packages


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Allowances and benefits are a significant portion of every worker compensation package, and various organizations have a general policy they set for diverse level workers. This general HR practice is both equitable and straightforward to apply for local employees, but it can be tricky to use across the globe. There are various benefits that organizations can offer to their employees, and they include: bonuses, healthcare expenses, health and life insurance as well as other allowances, taxability and benefits. The U.S. lags when it comes to employee benefits and compensation when compared with other countries like Spain, France and Italy. The benefits might appear excessive and can be associated with the economic crisis. Still, it is vital to consider these countries’ past as well as their political, economic and social settings where their pay structures were generated from. 














Compensation and benefits 

The workers’ bill stipulates the basis of employee compensation: “by the unit of work, proportional payments, by a unit of time, payment for the executed task, and mixed payments.” Most salaries are determined by payment of time which excludes the quantity of output. Salaries by a unit of task do not depend on time; instead, it considers the amount of job produced. Mixed payrolls entail a combination of the two. Payment for work depends on tasks completed in a given duration. Proportional compensation schemes depend on company profits. Currently, Spanish employees have moved from a stern pay plan to a more flexible payment structure for their workers. Spanish workers are assured of basic rights on their payment (Crush & Woods, 2009). Pay ought to be timely and escorted by a pay-slip. It might be paid sporadically though it should not exceed one-month intermissions and violation of this policy by an organization ensures the employee a 10% interest payment on the pending amount.

Pay differs depending on the exposure to hazardous substances, the period of service, expenses of living in an island region, the shift of work, and travel costs. Compensation determination is legally and formally controlled in Spain. The procedure occurs at distinct stages of collective bargaining. Collective arrangements are attained at national, regional, as well as sector stage as well as at the organizational level. The contract encompasses both working conditions and compensation. The negotiating sides settle on the content and duration of every agreement.

The organizational stage negotiators are:

  • The management of the organization or their lawful representatives
  • The works committee
  • Union representatives, if available and constitute a majority on the works board

The sector stage negotiators are: 

  • The most representative union at an autonomous community level or state
  • Industry associations that possess 10 % membership of organizations in the region impacted by the agreement and which employs at least 10 % of employees in the area
  • Trade unions with a minimum of 10 % of the works committee members or personal delegates in the functional or geographical region where the contract is applicable

Minimum wage 

The minimum wage in Spain is regulated by the government. Sporadically, the minimum wage is controlled depending on the age of employees. At the moment, the minimum wage of workers above 18 years is 1775 pesetas per day. The Wage Guarantee Fund offers partial compensation if an organization or business fails to pay their workers because of insolvency (Moran et al., 2001). Employers contribute to the fund by offering 4 % of the ceiling used to compute social security compensation for sickness, unemployment benefits, as well as unintentional work benefits. According to the Spanish constitution, it is unlawful to prejudice compensation based on sex, origin, political or religious convictions, among others.