COMPENSATION AND BENEFITS - BANGLADESH
COMPENSATION AND BENEFITS
LOCAL LAW REFERENCE
Bangladesh Labour Code,
2006
POLICY
♦ (YOUR COMPANY NAME). pays at least the total minimum
compensation required by local laws, including all mandated wages, allowances and benefits to its workers and staff.
♦ (YOUR COMPANY NAME). does not pay less than the minimum
wage prescribed by the local law
to unskilled workers. To other category of workers, wages paid will be in line
with those prevailing in the industry at the time, which also provides some discretionary income.
♦ (YOUR COMPANY NAME). posts legal minimum wage rates, overtime rates, benefit policies, and additional payment information in
the native language.
♦ (YOUR COMPANY NAME). ensures that its contractor
pays piece-rate workers at a rate at least equivalent to the minimum wages per
month.
♦ If a piece rated worker is earning
less than minimum
wages in any month, the company pay remaining
amount to him on voucher to maintain minimum wages.
PROCEDURE
• Under
supervision
of
CR,
company’s
Accounts
Department
and
Contractors
ensure
the
compliance against this policy.
• Company makes
sure that salaries
of employees are not deducted
as a matter of punishment imposed from any superior to subordinate.
• Company reviews, if any compliant/objection are logged/raised through Suggestion Memo and discuss the
matter with management and resolve it on priority basis.
SALARY
• Company makes sure that all the salaries of permanent employees are in accordance
with the labor law and disbursed through an adequate procedure on given schedule.
• Paydays
o Employees
who are paid on monthly
or piece rate basis are paid within the seven working days of the
next month. Each salary will include earnings for
all work performed through the end of
the previous payroll period.
o In the event that a regularly
scheduled payday falls on a day off such as a weekend or holiday, employees
will be paid on the first day of work following the regularly scheduled payday.
o If a regular
payday falls during an employee's vacation, the employee
may receive his or her earned wages before departing
for vacation if a written request is submitted at least one week
prior to departing for vacation.
• Salary
of the workers includes all allowances and special allowances as admissible under the law.
• If any piece rated worker does not meet the minimum
wage, organization pays him as arrears to meet the minimum wage.
GROUP
INSURANCE
• As defined
under the local laws (YOUR COMPANY NAME). has insured all its employees against
death and injury leading to permanent/partial
disability to the maximum legal coverage of Tk. 100,000/-.
OVERTIME
A. Overtime is calculated on the basis of “double the basic salary”
calculation of over time per hour for the monthly basis worker is
BASIC SALARY X 2 .
26
(DAYS) X 8 (HOURS)
B. Overtime calculation of per hour for the
piece rate worker is
Total Earning on Piece Rate in Current
Month
Total
Working Hours (with OT hours)
C.
Payment of overtime is made within 7th working days of each month with monthly wages.
BONUS
• A. Festival Bonus: Company provides two festival bonuses in a year as per the following regulations:
o If
the service length becomes 10 months or more
then 100% basic in each festival.
o If the service length becomes 8 months but less then 10 months then 75% basic in each
festival.
o If the service
length becomes 6 months but less then 8 months then 50% basic in each
festival.
o If the service
length becomes 3 months but less then 6 months then 25% basic in each
festival.
o If the service length is less then 3 months then as per the management approval a lump
sum amount provide in the festivals.
• B. Attendance Bonus:
If any worker never being
absent and late in any month, then he/she will get the
attendance bonus.
• Company
makes sure that all the permanent employees
receive bonuses on time,
RESPONSIBLE PERSON
• CR,
Factory Manager and Head of Admin are responsible for:
o Proper communication of company’s policy on minimum
wages, overtime compensation rates, legally mandated
benefits and additional payments.
o Organizing meetings and training programs
to ensure that the policy is properly communicated and understood, the minutes of the
meeting are then recorded and circulated
to all the participants as per
distribution record list.
o For
maintaining the records of 2nd party
and 3rd party inspections.
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