Compensation Plan Template Samples For Workers

A compensation plan template is used by the organizations to reveal the salaries, perks, benefits, bonuses and other associated settlement that will be offered to the employee. This agreement takes place when the new employee joins the company and gives his consent to the compensation letter wherein the declaration about the remuneration and benefits associated with the job positions are clearly stated. The main motive behind the compensation plan and added incentives in it are to motivate the employees and reward them as per their accomplishments made during a particular period. The following are the compensation plan template samples for workers.

Sample Compensation Plan I:

Compensation, overtime and late or early working hours:

The basic compensation for the workers will be $15/hour.

Other than the basic compensation, the employees will also be paid for traveling assistance through the traveling allowance and living assistance through rental allowance. The limit of traveling allowance will be $100 per month while the rental allowance will be $150 per month.

The workers working overtime will be paid at the basic compensation rates with an addition of $2/hour. This way the workers will be paid to the employees for every extra hour they work as overtime. The overtime work will be counted above 40 hours of work that are served by the worker in a week.

An additional $2/hour will be paid to the workers for working late hours and early morning timings.

Vacation/Holiday/Leave compensation:

The workers will be offered 2 days’ holidays every month as part of casual leave which is paid. Still, the holidays need to be taken after getting them approved by the concerned head of the department. The workers are offered paid vacation and leave for 5 days in a year. However, the worker still needs to get approval from the concerned Head of the department before availing this benefit.

Health Insurance:

The workers will be entitled to enroll with the comprehensive health plan which will help them overcome the future financial assistance that may arise due to an unknown event or accident that harms their health or body. The benefits will be equitably offered to all the employees. Enrolling to this health insurance plan will be compulsory for all workers and 50% of the payment to the premiums will be made by the employer and the rest will be deducted from worker’s compensation on regular basis.

Sample Compensation Plan II:

Compensation, overtime and late or early working hours:

The basic compensation for the workers will be $18/hour.

The employees will be paid for traveling assistance through the traveling allowance and living assistance through rental allowance. The limit of traveling allowance will be $150 per month while the rental allowance will be $180 per month.

The overtime work will be counted above 40 hours of work that are served by the worker in a week. The overtime will be paid with the basic compensation with an extra of $1.5/hour.

Vacation/Holiday/Leave compensation:

The workers will be offered 5 days of holidays every month.

The workers will be offered paid vacation and leave for 5 days in a year.

Health Insurance:

It will be mandatory for all the workers to become part of health insurance.

The workers will have to make a partial contribution to the health insurance premium payment purpose.

You may also refer to The HR Digest’s guide on types of compensation plans and benefits.

Whether you want to stay up-to-date on HR news, read in-depth insights on HR trends or find new ideas on strategy, innovation, and leadership, The HR Digest Magazine is here to suit your needs and help you stay more informed.

Anna Verasai
Anna Verasai
Anna Versai is a Staff Writer at The HR Digest; she covers topics related to Recruitment, Workplace Culture, Interview Tips, Employee Benefits, and HR Leadership. She also writes for Technowize, providing her views on the Upcoming Technology, Product Reviews, and the latest apps and softwares.

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