HRM 3420 Lecture Notes - Lecture 10: Employee Benefits, Old Age Security, Pension
10 Apr 2016
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Mandatory beneits: employees" mandatory beneits include pension plan, employment. Employers must also provide minimum levels of statutory vacaion ime, holidays and rest breaks. The amount the employer must contribute for each of these programs is based on the total cash compensaion received by an employee. Employment insurance and workers" compensaion premiums can amount up to 10% of total compensaion for lower-income employees. But b/c of caps on the premiums, they amount to a much smaller percentage of the compensaion of more highly paid employees. Reirement income: all ciizens are enitled to old age security which pays a small ixed pension: deined beneit plans: provide reirement income based on a proporion of the employee"s pay at the ime of reirement. The amount is a proporion of the employee"s annual earnings, modiied by the number of years the employee has been covered by the plan.
