I Constituent elements of Salary System of Inner Mongolia Industrial Mining Co., Ltd.:
Salary constituent elements include basic wages, post wage, performance pay, piecework wage, allowances and subsidies, welfare, special bonus, and year-end bonus.
Basic wages: the employee’s basic living security, which is also the wage standard for those special people who are not at the post, but still require the payment of wages(long-term sick leave, personal leave, etc.), the standard is the minimum living wage standards determined by the Inner Mongolia Autonomous Region government, with annual adjustment according to the state standards.
Post wage: It is a fixed wage to reflect the relative value of the position of the post staff, determined by job qualifications and adjusted according to job responsibilities size, importance, required experience and skills, personal ability and qualities and ranks of individual employees.
Performance pay: It is the wage determined based on job performance through the efforts of employees, which is the relatively fluctuant part in the employee’s salaries. The performance pay standard is determined according to position, and the specific payment amount is determined according to employee performance.
Piecework wage: it is the labor remuneration calculated according to the predetermined unit price based on the number of the produced qualified products or a certain amount of work completed.
Allowances and subsidies: it is the health care wage of the on-the-job employees in the company, which is determined depending on the nature of work of various types of jobs and is the fixed salary for relevant employee in the service period, including seniority allowance.
Welfare: Social Welfare is the social insurance paid for employees according to the state regulations, including pension insurance, medical insurance, unemployment insurance, work-related injury insurance, maternity insurance and housing fund, the basic payment and proportion shall refer to national and regional regulations. Company benefits include paid holidays.
Special bonus: the award is set up to encourage those employees who have outstanding performance and contribution in an important, periodic task, and who have accomplished specific tasks remarkably or made a special contribution to the company. Bonus items include special contribution award, quality and safety awards, scientific and technological progress awards and other incentives.
Year-end bonus: It is the bonus set up to reflect the income of employees closely related with the company’s overall efficiency. The total bonus is determined according to annual operating conditions of the company and its affiliated enterprises. The allocation scheme is determined based on an employee’s annual performance appraisal results.
The post wage and performance pay of Inner Mongolia Xingye Mining Co., Ltd. implement broadband salaries standards, ensuring employees in different career development paths to make their pay levels increase steadily through their own efforts. The special bonus and year-end bonus in the salary constituent elements are not included in the basic salary structure. The special bonus is the non-fixed pattern, which is timely established according to the enterprise development. The Company’s Remuneration and Appraisal Committee shall determine the incentive program. As to the year-end award, the company will put forward the total award application and the allocation scheme in January of each year according to the operating effectiveness, and the respective companies will develop programs, which shall be issued after the approval by the Company.
II Evaluation system of Inner Mongolia Xingye Mining Co., Ltd.
Inner Mongolia Xingye Mining Co., Ltd. has established a sound scientific performance appraisal system, which is divided into two parts of institutional performance appraisal system and individual employee performance appraisal system. Among them, the institutional performance appraisal system includes the company’s overall performance evaluation, the affiliated enterprise’s performance evaluation, and performance evaluation of various departments at all levels. The indicators for institutional performance appraisal at various levels have both inheritance and decomposition, and mutual support; the individual employee appraisal includes the three levels of senior management appraisal, middle management appraisal and general employee appraisal. The personal performance results of senior management and middle management are directly linked with corporate annual performance evaluation results; the general employee performance evaluation results are directly linked with corporate institutional performance and department performance appraisal results. It reflects the closely-related performance relationship between employees and enterprise or department, between department and enterprise. The overall performance is decomposed and implemented into various levels, thus each person has his won responsibility and aims. There a performance appraisal system with Xingye Characteristics is formed in which the two lines of “institutional performance + employee performance” are closely combined.