{"id":14932,"date":"2025-01-16T09:42:23","date_gmt":"2025-01-16T09:42:23","guid":{"rendered":"https:\/\/www.hashmicro.com\/ph\/blog\/?p=14932"},"modified":"2026-02-27T09:18:54","modified_gmt":"2026-02-27T09:18:54","slug":"compensation","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/ph\/blog\/compensation\/","title":{"rendered":"A Guide to Compensation: What It Is and How It Works"},"content":{"rendered":"<p>Compensation extends far beyond a paycheck. It shapes how employees feel about their work, how long they stay with a company, and how effectively a business competes for talent. Understanding the full scope of compensation management helps organizations make informed decisions about pay, benefits, and performance rewards.<\/p>\n<p>This article covers the core components of a compensation system, the different forms compensation takes, and the process employees in the Philippines can follow when filing a workers&#8217; compensation claim.<br \/>\n<div id=\"toc_group_article\" style=''>\r\n\t<p style='font-size:25px;font-weight:bold; margin-bottom:0px'>\r\n\t\tTable of Contents\r\n\t<\/p>\r\n\t<ul id=\"list_toc\" class='list_toc'><\/ul>\r\n<\/div>\r\n\r\n<div id=\"placeholder-toc\"><\/div>\r\n<div id=\"toc\">\r\n    <div class=\"header\">\r\n\t<span class=\"toc-title\" id=\"toc-title\">Content Lists<\/span>\t\r\n\t <i class=\"toc-icon\">\r\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"30\" height=\"30\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#000\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"header-icon\">\r\n          <path d=\"m6 9 6 6 6-6\" \/>\r\n        <\/svg>\r\n      <\/i>\r\n\t<\/div>\r\n    <div class=\"list\">\r\n      <ul id=\"toc-list\"><\/ul>\r\n    <\/div>\r\n <\/div>\r\n\r\n<style>\r\n\/* Simple styling for the TOC *\/\r\n\t\r\n\t#toc ul li:last-child {\r\n    padding-bottom: 16px; \/* Adjust the value as needed *\/\r\n}\r\n\r\n.td-fix-index {\r\n\t transform: unset !important;\r\n     -webkit-transform: unset !important; \r\n}\r\n.footer-contact .td-fix-index {\r\n\t transform: translateZ(0) !important;\r\n     -webkit-transform: translateZ(0) !important; \r\n}\r\n\t.tdb_single_content .tdb-block-inner.td-fix-index{\r\n\t\tposition: static;\r\n\t}\r\n\t\r\n\r\n\t\r\n#toc {\r\n  background-color: #FFF;\r\n\tpadding: 17px 24px 20px 24px !important;\r\n  margin-bottom: 20px;\r\n\/*   border: 1px solid #9C171E; *\/\r\n  border-radius: 6px;\r\n\tdisplay: none;\r\n  max-width: 100%;\r\n  transition: .4s ease height;\r\n\tmargin-left: 0;\r\n\toverflow: hidden;\r\n}\r\n\r\n#toc .header{\r\n  display: flex;\r\n  align-items: center;\r\n  justify-content: space-between;\r\n\tbackground-color: transparent;\r\n}\r\n\t\r\n\t#toc.sticky .header{\r\n\t\tpadding: 4px 0;\r\n\t}\r\n\t\r\n.header p{\r\n  font-size: 18px !important;\r\n  font-weight: 600 !important;\r\n  color: #393939;\r\n   margin-bottom: 0;\r\n  \/* margin-top: 20px; *\/\r\n}\r\n\r\n.toc-icon{\r\n  float: right;\r\n\/*   visibility: hidden; *\/\r\n}\r\n\r\n\t.toc-title{\r\n\t\tmargin-right: auto;\r\n\/* \t\tpadding-left: 20px; *\/\r\n\t\tfont-weight: 600;\r\n\t\talign-self: center;\t}\t\r\n\r\n#toc ul {\r\n  list-style-type: none;\r\n  padding-left: 0;\r\n  padding-top: 20px;\r\n  margin-top: 0px;\r\n}\r\n\t\r\n#toc.sticky ul{\r\n\toverflow-y: auto;\r\n\tmax-height: 250px;\r\n\tmargin-top: 0px;\r\n\tpadding-top: 20px;\r\n\/* \tborder-top: 1px solid #d3d3d3; *\/\r\n}\r\n\t\r\n#toc ul li {\r\n\/*   margin-bottom: 10px; *\/\r\n  margin-bottom: 10px;\r\n\tmargin-left: 0;\r\n\ttransition: .2s ease;\r\n\tcursor: pointer;\r\n}\r\n\t\r\n\t#toc.sticky ul li {\r\n\t  margin-right: 10px;\r\n\t}\r\n\t\r\n.td-post-content #toc-list li a:hover, .td-post-content #toc-list a.active{\r\n\tbackground-color: #FFF;\r\n\/* \tpadding: 8px 16px 8px 16px; *\/\r\n\tpadding: 4px 16px 4px 16px;\r\n\tborder-radius: 6px;\r\n\tcolor: #9c171e !important;\r\n\tfont-weight: 600 !important;\r\n}\r\n\t\r\n\t.td-post-content #toc-list li:hover a, .td-post-content #toc-list a.active{\r\n\t\tcolor: #9C171E !important;\r\n\t\tfont-weight: 600 !important;\r\n\t}\r\n\t\r\n.td-post-content #toc-list a.active{\r\n\tfont-weight: bold !important;\r\n\tcolor: #9C171E !important;\r\n}\r\n\t\r\n#toc a, .td-post-content #toc-list a {\r\n  text-decoration: none;\r\n  color: #ea1717 !important;\r\n  transition: .2s ease;\r\n\tfont-weight: 400 !important;\r\n\tdisplay: block;\r\n\t\r\n\tpadding: 4px 16px 4px 0;\r\n}\r\n\r\n#toc.sticky {\r\n  position: fixed;\r\n\/*   top: 73px; *\/\r\n\tbottom: 0;\r\n  z-index: 100; \r\n  box-shadow: 0 2px 5px rgba(0,0,0,0.1); \r\n\twidth: 100%; \r\n\tbackground-color: #FFF;\r\n\/* \tbackground-color: #FFF1F1; *\/\r\n\tborder-bottom: 1px solid #ea1717;\r\n\/*   border: 1px solid #393939; *\/\r\n  box-shadow: 0px 0px 14px 0px #00000040;\r\n  cursor: pointer;\r\n\tanimation: fadein .3s ease;\r\n\tpadding: 12px 16px !important;\r\n}\r\n\t\r\n\t.fadein{\r\n\t\tanimation: fadein .3s ease;\r\n\t}\r\n\t\r\n\t.fadeout{\r\n\t\tanimation: fadeout .3s ease;\r\n\t}\r\n\t\r\n\t\r\n\t@keyframes fadein{\r\n\t\t0% {\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@keyframes fadeout{\r\n\t\t0% {\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t}\r\n\r\n\t\r\n#toc.sticky .header p{\r\n\tmargin-bottom: 10px;\r\n\tmargin-top: 10px;\r\n}\r\n\r\n#toc.sticky .toc-icon{\r\n  visibility: visible;\r\n\/* \ttransition: 0.4s ease; *\/\r\n}\r\n\t\r\n\t.toc-icon{\r\n\t\talign-items: center;\r\n    \tdisplay: flex;\r\n\t}\r\n\t\r\n\tsvg.header-icon{\r\n\/* \t\tbackground-color: #9c171e; *\/\r\n\t\tbackground-color: #FFF;\r\n\t\tborder-radius: 30px;\r\n\t\tpadding: 5px;\r\n\t}\r\n\r\n#toc.sticky .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\t\r\n\t#toc .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\r\n#toc .header.active .toc-icon{\r\n\ttransform: rotate(0deg); \r\n\topacity: 1;\r\n}\r\n\r\n\t#toc .header.active + .list {\r\n\t  max-height: 200px; \/* Adjust this value as needed *\/\r\n\t  opacity: 1;\r\n\t}\r\n\t\r\n\t#placeholder-toc{\r\n\/* \t\tdisplay: none; *\/\r\n\t}\r\n\t\r\n\t@media (min-width: 768px) and (max-width: 991px){\r\n\t\t#toc.sticky{\r\n\/* \t\t\ttop: 104px; *\/\r\n\t\t\tbottom: 0px;\r\n\t\t}\r\n\t\t\r\n\t\t#toc{\r\n\t\t\twidth: unset !important;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width: 767px){\r\n\t\t#toc{\r\n\t\t\twidth: 100% !important;\r\n\t\t\tdisplay: inline-block;\r\n\t\t}\r\n\t\t\r\n\t\t#toc.sticky{\r\n\t\t\twidth: 84% !important;\r\n\/* \t\t\ttop: 81px; *\/\r\n\t\t\tbottom: 60px;\r\n\t\t\tmargin-left: auto;\r\n\t\t\tmargin-right: auto;\r\n\t\t\tpadding: 0 16px;\r\n\/* \t\t\tright: 5%; *\/\r\n\t\t}\r\n\t}\r\n<\/style>\r\n\r\n<style>\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc > li > ul {padding-left: 20px;margin-bottom: 0;}\r\n\t#list_toc{height:max-content;transition:ease-in-out}\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc_float li.active > a {color:#b1252d;background: #ffe1e3;}\r\n\t#list_toc_float li a {padding:3px 7px}\r\n\t#list_toc_float li a {\r\n\t\tdisplay: block;\r\n\t\tcolor:#000;\r\n\t\tmargin-bottom: 10px;\r\n\t\ttransition:all 0.2s ease-in-out;\r\n\t\tfont-size:15px\r\n\t}\r\n\t#list_toc_float li{list-style:none;list-style-position:inside; margin-left:0;}\r\n\t#list_toc_float a:hover{color:#b1252d;}\r\n\t\r\n\t#list_toc_float li a{margin-bottom:0px}\r\n\t#toc_group_float{\r\n\t\tline-height: 24px;\r\n\t\tmax-height: calc(100vh - 100px);\r\n\t\toverflow: auto;\r\n\t\tz-index: 99;\r\n\t\tdisplay:none!important;\r\n\t\tbackground:#fff;\r\n\t\ttransition:all 0.5s linear\r\n\t}\r\n\t\r\n\t@media (min-width:1019px){\r\n\t\t#toc_group_float {\r\n\t\t\tdisplay:block!important;\r\n\t\t\t}\r\n\t\t\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width:768px){\r\n\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t \/* custom scrollbar style *\/\r\n::-webkit-scrollbar {\r\n    width: 7px;\r\n}\r\n::-webkit-scrollbar-track {\r\n    background: #d7a2a4;\r\n}\r\n::-webkit-scrollbar-thumb {\r\n    background: #b1252d;\r\n    border-radius: 15px;\r\n}\t\t\r\n\r\n<\/style>\r\n\r\n<script>\r\n\tdocument.addEventListener('DOMContentLoaded', function() {\r\n\t\t\/\/ Function to handle click on all <a> elements with href starting with #\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst targetId = this.getAttribute('href').substring(1);\r\n\t\t\tconst targetElement = document.getElementById(targetId);\r\n\r\n\t\t\tif (targetElement) {\r\n\t\t\t\tconst headerHeight = document.querySelector('#toc .header').offsetHeight;\r\n\t\t\t\tconst navbarHeight = document.getElementById('tdi_34') ? document.getElementById('tdi_34').offsetHeight : 0;\r\n\t\t\t\tconst windowHeight = window.innerHeight;\r\n\t\t\t\tconst targetOffset = targetElement.offsetTop;\r\n\t\t\t\tconst scrollTo = targetOffset + (windowHeight \/ 2) + (headerHeight) - navbarHeight - 40;\r\n\r\n\t\t\t\twindow.scrollTo({\r\n\t\t\t\t\ttop: scrollTo,\r\n\t\t\t\t\tbehavior: 'smooth'\r\n\t\t\t\t});\r\n\t\t\t}\r\n\t\t}\r\n\r\n\t\t\/\/ Add event listener for all <a> elements in toc-list and list-toc\r\n\t\tconst titleLinks = document.querySelectorAll('#toc-list a, #list_toc a');\r\n\t\ttitleLinks.forEach(link => {\r\n\t\t\tlink.addEventListener('click', handleTitleClick);\r\n\t\t});\r\n\t});\r\n<\/script>\r\n\r\n<!-- ToC List for mobile -->\r\n<script>\r\n \/\/ Generate TOC based on headings\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  \/\/ Get the element that will contain the TOC\r\n  const tocList = document.getElementById('toc-list');\r\n\r\n  \/\/ Get the element with class 'td-post-content'\r\n  const article = document.querySelector('.td-post-content');\r\n\r\n  \/\/ Find all h2 elements within the article\r\n  const headers = article.getElementsByTagName('h2');\r\n\r\n  \/\/ Loop through the h2 elements and create a list item for each one\r\n  for (let i = 0; i < headers.length; i++) {\r\n    const header = headers[i];\r\n    const headerText = header.textContent;\r\n\/\/     const headerId = 'header-' + i;\r\n    const headerId = headerText\r\n    .toLowerCase()\r\n    .trim()\r\n    .replace(\/[^\\w\\s-]\/g, '')  \/\/ hapus tanda baca\r\n    .replace(\/\\s+\/g, '-'); \/\/ ganti spasi jadi \"-\"\r\n\r\n    \/\/ Set an ID for the header if it doesn't have one\r\n    header.setAttribute('id', headerId);\r\n\r\n    \/\/ Create a list item for the TOC\r\n    const listItem = document.createElement('li');\r\n\r\n    \/\/ Create a link for the list item\r\n    const link = document.createElement('a');\r\n    link.setAttribute('href', '#' + headerId);\r\n    link.textContent = headerText;\r\n\r\n    \/\/ Append the link to the list item\r\n    listItem.appendChild(link);\r\n\r\n    \/\/ Append the list item to the TOC list\r\n    tocList.appendChild(listItem);\r\n  }\r\n});\r\n\r\n\/\/ Keep height and placement of content using placeholder in place of TOC\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const placeholderToc = document.querySelector('#placeholder-toc');\r\n\r\n  function setPlaceholderHeight() {\r\n    placeholderToc.style.height = `${toc.offsetHeight}px`;\r\n  }\r\n\r\n  \/\/ Set the initial height of the placeholder\r\n  setPlaceholderHeight();\r\n\r\n  \/\/ Update the height on window resize\r\n  window.addEventListener('resize', setPlaceholderHeight);\r\n});\r\n  const tocTitle = document.querySelector('#toc-title');\r\n\r\n\/\/ Sticky TOC and update heading\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const footer = document.querySelector('.td-footer-template-wrap');\r\n  const tocParent = toc.parentElement;\r\n  const divTop = tocParent.getBoundingClientRect().top + window.pageYOffset;\r\n  const tocHeight = toc.offsetHeight;\r\n  const triggerPoint = divTop + tocHeight + 700;\r\n  const footerHeight = footer.offsetHeight;\r\n  const triggerFooterPoint = footer.getBoundingClientRect().top + window.pageYOffset - footerHeight - footerHeight - footerHeight;\r\n  const phtoc = document.querySelector('#placeholder-toc');\r\n  const headers = document.querySelectorAll('.td-post-content h2');\r\n  const navLinks = document.querySelectorAll('#toc-list a');\r\n\t\r\n\tconst panel2 = document.querySelector(\"#toc .list\");\r\n\tvar icon = document.querySelector(\".toc-icon\");\r\n\r\n  let activeLink = null; \/\/ Declare activeLink outside the loop\r\n\t\r\n  \/\/ Function to handle scroll and add\/remove .sticky class\r\n  function handleScroll() {\r\n    const windowTop = window.pageYOffset || document.documentElement.scrollTop;\r\n    let currentHeader = '';\r\n\r\n    \/\/ Highlight user progress as the heading comes\r\n    headers.forEach(header => {\r\n\t\tconst headerTop = header.offsetTop;\r\n\t\tconst headerHeight = header.clientHeight;\r\n\t\tif(window.innerWidth < 767){\r\n\t\t\ttocTitle.textContent = 'Table of Contents'; \/\/ Selalu pertahankan judul ini di mobile\r\n\t\t} else {\r\n\t\t\tif (window.scrollY >= (headerTop - headerHeight + 700)) {\r\n\t\t\t\tconst currentHeaderId = header.getAttribute('id');\r\n\t\t\t\tconst currentHeaderText = document.getElementById(currentHeaderId).textContent;\r\n\t\t\t\ttocTitle.textContent = currentHeaderText;\r\n\t\t\t\tcurrentHeader = currentHeaderId;\r\n\t\t\t}\r\n\t\t}\r\n\t});\r\n\r\n    navLinks.forEach(link => {\r\n      link.classList.remove('active');\r\n      if(currentHeader != '') {\r\n\t\t  if (link.getAttribute('href').includes(currentHeader)) {\r\n\t\t\t  link.classList.add('active');\r\n\t\t  }\r\n\t  }\r\n    });\r\n\r\n    \/\/ Update TOC title if sticky\r\n    if (windowTop > triggerPoint) {\r\n      if (!toc.classList.contains('sticky')) {\r\n        phtoc.style.display = \"block\";\r\n        toc.classList.add('sticky');\r\n        toc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n        toc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n        toc.style.backgroundColor = \"#FFF\";\r\n\t\tpanel2.style.height = '0px';\r\n\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t  if(window.innerWidth < 767){\r\n\t\t\t  tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n       \t\t  toc.style.width = '150px'; \/\/ Set width to match the parent element\r\n\t\t  }\r\n      }\r\n      if (currentHeader) {\r\n        tocTitle.textContent = activeLink ? activeLink.textContent : \"\"; \/\/ Update title only if activeLink exists\r\n      }\r\n    } else {\r\n      toc.classList.remove('sticky');\r\n      phtoc.style.display = \"none\";\r\n      toc.style.width = 'unset'; \/\/ Reset to original width\r\n      toc.style.backgroundColor = \"#FFF\";\r\n      tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n\t\tpanel2.style.height = panel2.scrollHeight + \"px\";\r\n\t\ticon.style.transform = \"rotate(180deg)\";\r\n    }\r\n  }\r\n\r\n    \/\/ Attach the scroll event listener to the window\r\n    window.addEventListener('scroll', handleScroll);\r\n\r\n    \/\/ Initial call to handleScroll to set the correct state on load\r\n    handleScroll();\r\n});\r\n\t\r\n\t\/\/ Open toggle TOC\r\n\t  document.addEventListener(\"DOMContentLoaded\", function() {\r\n\t\tvar tocHeader = document.querySelector(\"#toc .header\");\r\n\t\tvar toc = document.querySelector(\"#toc\");\r\n\t\tvar icon = document.querySelector(\".toc-icon\");\r\n\t\tconst tocTitle = document.querySelector('#toc-title');\r\n\t\tconst tocs = document.querySelector('#toc.sticky');\r\n \t\tconst tocParent = toc.parentElement;\t\t  \r\n\r\n\t\t  tocHeader.addEventListener(\"click\", function() {\r\n\t\t\tvar panel = this.nextElementSibling;\r\n\t\t\tif (panel.style.height !== '0px') { \/\/ Check if height is not 0px\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t\tif(window.innerWidth > 768){\r\n\t\t\t\t\tif(!toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = \"unset\";\r\n\t\t\t\t\t}\r\n\t\t\t\t\tif (toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = '${tocParent.offsetWidth}px';\r\n\t\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t\t}\r\n\t\t\t\t}\r\n\t\t\t\tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = \"unset\"; \/\/ Reset width\r\n\t\t\t\t}\r\n\t\t\t\ttoc.style.backgroundColor = \"#FFF1F1\";\r\n\t\t\t} else {\r\n\t\t\t  panel.style.height = panel.scrollHeight + \"px\";\r\n\t\t\t  icon.style.transform = \"rotate(0deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t  tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n\t\t\t\ttoc.style.paddingBottom = '24px';\r\n\t\t\t \tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t}\r\n\t\t\t}\r\n\t\t  });\r\n\r\n\t\t  \/\/ Close TOC when a link inside it is clicked\r\n\t\t  var tocLinks = document.querySelectorAll(\"#toc .list a\");\r\n\t\t  tocLinks.forEach(function(link) {\r\n\t\t\tlink.addEventListener(\"click\", function() {\r\n\t\t\t  var panel = document.querySelector(\"#toc .list\");\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t});\r\n\t\t  });\r\n\t\t});\r\n\t\r\n\/\/ \tmake the heading at the center of the viewport\r\n\/\/ \tdocument.addEventListener('DOMContentLoaded', function() {\r\n\/\/     \/\/ Add click event listener to all links in the TOC list\r\n\/\/     document.querySelectorAll('#toc-list a').forEach(anchor => {\r\n\/\/         anchor.addEventListener('click', function (e) {\r\n\/\/             e.preventDefault(); 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background-color: #fffacd; border-radius: 25px 25px 25px 25px;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 15px; border: none;\">\n<h3 style=\"margin-bottom: 10px;\"><span style=\"background-color: #990000; color: #ffffff; padding: 5px;\"><b>Key Takeaways<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><a href=\"#what\">Compensation includes<\/a> salary, bonuses, incentives, and benefits, playing a crucial role in employee satisfaction and retention.<\/li>\n<li style=\"font-weight: 400;\">A <a href=\"#structure\">structured compensation<\/a> system ensures fairness and motivates employees through tools like job evaluations, pay structures, and salary surveys.<\/li>\n<li style=\"font-weight: 400;\"><a href=\"#cost\">Workers&#8217; compensation costs<\/a> in the Philippines vary by industry, with higher rates for high-risk jobs like construction.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>What is Compensation?<\/b><\/h2>\n<p><span id=\"what\">Compensation generally refers to the financial payment provided to an individual in return for their work or services. In a workplace context, compensation encompasses more than just salary or wages; it also includes commissions, bonuses, incentive pay, and <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/incentive-pay\/\">additional perks tied<\/a> to the employee&#8217;s role.<\/span><\/p>\n<p>Employers understand the challenge of finding top talent. Developing a competitive compensation package is crucial for attracting and retaining the ideal employees who can drive the success of your business.<\/p>\n<p>To secure top-notch talent, it&#8217;s important to offer attractive pay and comprehensive benefits. However, there\u2019s no need to panic about costs, there\u2019s always a way to strike a balance that benefits everyone involved.<\/p>\n<h2><b>How is Compensation Used?<\/b><\/h2>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting.webp\"><img decoding=\"async\" class=\"aligncenter wp-image-14936 size-full\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting.webp\" alt=\"accounting\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/accounting-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><\/p>\n<p>Compensation serves as a strategic tool for management to support and enhance the company\u2019s operations. It can be adjusted based on the organization&#8217;s needs, goals, and available resources. Compensation strategies are often utilized to:<\/p>\n<ul>\n<li>Attract and retain skilled employees.<\/li>\n<li>Boost morale and employee satisfaction.<\/li>\n<li>Reward and motivate high performance.<\/li>\n<li>Ensure fairness internally and externally.<\/li>\n<li>Minimize turnover and foster loyalty.<\/li>\n<li>Negotiate practices with unions effectively.<\/li>\n<\/ul>\n<p>One of the primary objectives of compensation is to recruit and retain qualified employees. However, the availability and cost of talent are often influenced by market factors beyond an employer&#8217;s control.<\/p>\n<p>While companies can establish and advertise salary ranges for new hires, these figures must align with those offered by competitors vying for the same talent pool. Hence, offering fair and competitive compensation retains top talent and improves the<a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/employee-experience\/\"> overall employee experience<\/a>.<\/p>\n<h2><b>Components of a Compensation System<\/b><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-32224 size-full\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/ChatGPT-Image-Feb-26-2026-11_48_47-AM.jpg\" alt=\"Components of a compensation system\" width=\"1536\" height=\"1024\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/ChatGPT-Image-Feb-26-2026-11_48_47-AM.jpg 1536w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/ChatGPT-Image-Feb-26-2026-11_48_47-AM-300x200.jpg 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/ChatGPT-Image-Feb-26-2026-11_48_47-AM-1024x683.jpg 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/ChatGPT-Image-Feb-26-2026-11_48_47-AM-768x512.jpg 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/ChatGPT-Image-Feb-26-2026-11_48_47-AM-630x420.jpg 630w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/ChatGPT-Image-Feb-26-2026-11_48_47-AM-150x100.jpg 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/ChatGPT-Image-Feb-26-2026-11_48_47-AM-696x464.jpg 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/ChatGPT-Image-Feb-26-2026-11_48_47-AM-1068x712.jpg 1068w\" sizes=\"(max-width: 1536px) 100vw, 1536px\" \/><\/p>\n<p><span id=\"structure\">Employees are more likely to perceive compensation as fair if it is based on a structured and systematic approach. Various compensation systems have been developed to assess the value of positions.<\/span><\/p>\n<h3><b>1. Job Descriptions<\/b><\/h3>\n<p>These are essential for both Compensation, providing detailed documentation of job responsibilities, requirements, functions, duties, work environment, location, and conditions. Job descriptions can be developed for individual roles or broader job families.<\/p>\n<h3><b>2. Job Analysis<\/b><\/h3>\n<p>This process involves evaluating jobs to create accurate job descriptions. Methods include interviews, questionnaires, and direct observation to gather necessary data.<\/p>\n<h3><b>3. Job Evaluation<\/b><\/h3>\n<p>A systematic method to compare jobs and determine appropriate compensation levels. Common techniques include:<\/p>\n<ul>\n<li><b>Ranking<\/b>: Ordering jobs by their relative value.<\/li>\n<li><b>Classification<\/b>: Grouping jobs into predefined categories.<\/li>\n<li><b>Factor Comparison<\/b>: Comparing jobs based on specific factors.<\/li>\n<li><b>Point Method<\/b>: Assigning points to job elements for comparison.<\/li>\n<\/ul>\n<h3><b>4. Pay Structures<\/b><\/h3>\n<p>These provide a framework for standardized compensation practices. Pay structures typically include several grades, each with a minimum salary or wage and increments based on steps or ranges.<\/p>\n<p>Step increments are especially common in unionized roles, where pay is determined through collective bargaining. Accurate <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/payroll-system\/\">payroll processing<\/a> is a cornerstone of <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/compensation-management\/\">effective compensation management<\/a>, so the company must also pay attention to this component.<\/p>\n<h3><b>5. Salary Surveys<\/b><\/h3>\n<p>These compile data on average salaries, inflation rates, cost-of-living indices, and salary budget trends. Surveys may be purchased from vendors or conducted in house. When using third party surveys, it\u2019s crucial to consider their focus.<\/p>\n<p>Whether they pertain to a specific industry, multiple industries, a single geographic region, or a broader area, make sure the data aligns with your company\u2019s context. <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/hris-human-resources-information-system\/\">Using a HRIS<\/a> system will help with automating and sorting out the data as well.<\/p>\n<h2><b>Examples of Compensation<\/b><\/h2>\n<p>Compensation packages vary widely across companies, with diverse options tailored to meet unique organizational needs. Below are the examples of compensation:<\/p>\n<h3><b>1. Annual Salary<\/b><\/h3>\n<p>Salaried employees receive a fixed annual rate, based on the value they bring to the organization, regardless of hours worked. These employees, often classified as exempt, are not eligible for overtime pay when exceeding 40 hours per week.<\/p>\n<h3><b>2. Hourly Wage<\/b><\/h3>\n<p>Hourly employees are paid a set rate for each hour worked, up to 40 hours weekly. Beyond that, non exempt employees qualify for overtime pay, usually calculated at one and a half times their standard hourly rate, commonly referred to as &#8220;time and a half.&#8221;<\/p>\n<h3><b>3. Raises<\/b><\/h3>\n<p>Salary or wage increases are typically tied to individual or team performance. Annual raises are a standard practice for both salaried and hourly employees.<\/p>\n<h3><b>4. Retirement Plans<\/b><\/h3>\n<p>Many companies provide retirement savings options, such as 401(k) plans. Employees contribute a small portion of their earnings, often matched partially by the employer. These plans are subject to vesting periods, which determine when the employer&#8217;s contributions become fully accessible, usually within one to five years.<\/p>\n<h3><b>5. Bonuses and Incentives<\/b><\/h3>\n<p>To encourage exceptional performance, employers may offer bonuses or incentives tied to specific, pre defined goals. These supplementary payments reward employees for meeting or exceeding targets.<\/p>\n<h3><b>6. Health Benefits<\/b><\/h3>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/employee-benefits\/\">Health care benefits<\/a> are a common inclusion in compensation packages. Employers typically cover a significant portion of the monthly premiums, with the remainder deducted from employees&#8217; gross pay. Most companies provide multiple plan options, allowing employees to select coverage that suits their needs.<\/p>\n<h2><b>How Much Does a Worker\u2019s Compensation Cost?<\/b><\/h2>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource.webp\"><img decoding=\"async\" class=\"aligncenter wp-image-14938 size-full\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource.webp\" alt=\"human resource\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/human-resource-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><span id=\"cost\">The cost of workers\u2019 compensation insurance in the Philippines varies depending on industry regulations and the nature of the work. Rates are influenced by factors such as employee risk levels and company payroll.<\/span><\/p>\n<p>While<a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/payroll-compliance\/\"> specific costs may differ<\/a>, companies can expect the following considerations based on real life scenarios:<\/p>\n<ul>\n<li>For <b>low risk jobs<\/b>, such as office based roles, the insurance rate may be relatively minimal, with fees calculated as a small percentage of the company\u2019s payroll.<\/li>\n<li>For <b>high risk jobs<\/b>, such as those in construction or manufacturing, rates are significantly higher due to the increased likelihood of workplace injuries.<\/li>\n<\/ul>\n<p>For instance, a construction firm in the Philippines might allocate higher insurance premiums for workers operating heavy machinery, while a BPO company would face lower costs for their desk based employees.<\/p>\n<p>These costs are essential for compliance with local labor laws and for protecting both employees and employers from unexpected financial liabilities.<\/p>\n<h2><b>How to Apply for Compensation<\/b><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-32233 size-full\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/Gemini_Generated_Image_2j1x9l2j1x9l2j1x.webp\" alt=\"compesation \" width=\"1536\" height=\"672\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/Gemini_Generated_Image_2j1x9l2j1x9l2j1x.webp 1536w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/Gemini_Generated_Image_2j1x9l2j1x9l2j1x-300x131.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/Gemini_Generated_Image_2j1x9l2j1x9l2j1x-1024x448.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/Gemini_Generated_Image_2j1x9l2j1x9l2j1x-768x336.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/Gemini_Generated_Image_2j1x9l2j1x9l2j1x-960x420.webp 960w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/Gemini_Generated_Image_2j1x9l2j1x9l2j1x-150x66.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/Gemini_Generated_Image_2j1x9l2j1x9l2j1x-696x305.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/Gemini_Generated_Image_2j1x9l2j1x9l2j1x-1068x467.webp 1068w\" sizes=\"(max-width: 1536px) 100vw, 1536px\" \/><\/p>\n<p>The process for claiming workers\u2019 compensation in the Philippines is governed by the Employees&#8217; Compensation Program (ECP). While the specifics may vary slightly depending on the company and sector, employees who experience a work related injury or illness should generally follow these steps:<\/p>\n<ol>\n<li><b>Document the Incident: <\/b>Record the details of the injury or illness as accurately as possible. Include photos, if applicable, and the names of witnesses to strengthen your claim.<\/li>\n<li><b>Notify Your Employer: <\/b>Report the injury or illness to your employer immediately. Employers are responsible for processing the claim through the Social Security System (SSS) for private sector employees or the Government Service Insurance System (GSIS) for public sector employees.<\/li>\n<li><b>Coordinate with SSS or GSIS: <\/b>Verify with your employer that the claim has been submitted to the relevant agency. You may also follow up directly with the SSS or GSIS to ensure the claim&#8217;s progress.<\/li>\n<li><b>Appeal if Necessary: <\/b>If the claim is denied, employees have the right to file an appeal with the <b>Employees\u2019 Compensation Commission (ECC)<\/b>. The ECC reviews cases and ensures fair treatment of employees under the ECP.<\/li>\n<\/ol>\n<p>Compliance with the ECP is mandatory, and employers must ensure workers can access their entitled benefits without undue delays or complications.<\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p>Compensation is one of the most consequential decisions an organization makes. A well designed system covers not just base pay, but also bonuses, incentives, and benefits that reflect the genuine value employees contribute. When compensation is structured fairly and transparently, it strengthens retention, supports morale, and helps organizations stay competitive in their hiring efforts.<\/p>\n<p>For companies looking to put these principles into practice, it helps to see how other organizations have structured their programs. Reviewing <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/top-hris-software-philippines\/\">the best HRIS software<\/a> options in the Philippines can help HR teams find a system that supports fair, consistent compensation management across the organization.<\/p>\n<h2><strong>FAQ on Compensation<\/strong><\/h2>\n<ul class=\"bottom_faq\">\n<li>\n<details>\n<summary><strong>What is the 13th Month Pay in the Philippines?<\/strong><\/summary>\n<p>The 13th Month Pay is a mandatory benefit in the Philippines, requiring employers to provide employees with an additional month&#8217;s salary, typically paid out before December 24.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>How is Overtime Pay Calculated in the Philippines?<\/strong><\/summary>\n<p>Overtime work is compensated with an additional 25% of the regular hourly wage for work beyond eight hours on ordinary days, and 30% for work on rest days or special holidays.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>How Does the Employees\u2019 Compensation Program (ECP) Work?<\/strong><\/summary>\n<p>The ECP is a government program providing compensation to public and private employees or their dependents in cases of work related sickness, injury, or death.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>What are the Mandatory Employee Benefits in the Philippines?<\/strong><\/summary>\n<p>Mandatory benefits include Social Security System (SSS) contributions, PhilHealth insurance, Pag-IBIG Fund (housing development mutual fund) contributions, and 13th Month Pay.<\/p>\n<\/details>\n<\/li>\n<\/ul>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the 13th Month Pay in the Philippines?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The 13th Month Pay is a mandatory benefit in the Philippines that requires employers to provide employees with an additional month's salary, typically paid before December 24 each year.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How is Overtime Pay Calculated in the Philippines?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Overtime work in the Philippines is paid with an additional 25 percent of the regular hourly wage for work beyond eight hours on ordinary days, and 30 percent for work on rest days or special holidays.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How Does the Employees\u2019 Compensation Program (ECP) Work?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The Employees\u2019 Compensation Program (ECP) is a government initiative that provides compensation to public and private employees or their dependents in cases of work-related sickness, injury, or death.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What are the Mandatory Employee Benefits in the Philippines?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Mandatory employee benefits in the Philippines include Social Security System (SSS) contributions, PhilHealth insurance, Pag-IBIG Fund contributions, and 13th Month Pay.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Compensation extends far beyond a paycheck. It shapes how employees feel about their work, how long they stay with a company, and how effectively a business competes for talent. Understanding the full scope of compensation management helps organizations make informed decisions about pay, benefits, and performance rewards. This article covers the core components of a [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":14937,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":{"0":"post-14932","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-hrm"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Guide to Compensation: What It Is and How It Works<\/title>\n<meta name=\"description\" content=\"Compensation encompasses all forms of financial and non-financial rewards provided to employees for their work.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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