1. PRESENTED BY:
NAINA GUPTA

2. 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.

3. TYPES OF COMPENSATION

4. Statutory requirements
Employee unions
Policy
of the organization
Ability to pay
Equity-internal and external
Demand supply gap in labour market

5. COMPENSATION PROVIDED BY
INDIAN AIRWAYS


Salary & Bonus Plans
 Competitive base salaries/raises
 Bonus programs
 Fixed/variable compensation
Group Insurance Programs
 Disability Income Insurance
 Life Insurance
 Carve-Out programs

6. 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

7. CONTINUED…..
•
•
•
•
•
•
PROFIT SHARING PLAN
PERFECT ATTENDANCE PLAN
BUSINESS TRAVEL ACCIDENT
INSURANCE
VACCATION PAY
EDUCATION SUPPORT
ALLOWANCE
PROFESSIONAL SPECIALIST
ALLOWANCE

8. 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

9. 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

10. PERQUISITE
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 groups
Additional compensation having immediate effect
and no future liability.

11.  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)

12. 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.

13. 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


14. INCIDENT…

RECENTLY, AROUND 18 EXAIR 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.

15. 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.