While generous with some benefits, including sick leave and maternity leave, the SME sector appears to be lacking in pension plans and group and life and health insurance for its workers.

The Silverstone and Platt's 2009 compensation and benefit reports for small and medium-sized entities (SMEs) in Jamaica - a survey which the researchers describe as 'instructive' rather than representative, based as it were on 56 respondents form the formal sector - states that all participating entities appeared to be compliant with Jamaican labour laws that govern vacation, sick and maternity leave.

However, fewer than 25 per cent of the surveyed population reported having a pension plan for employees, and only 40 per cent of all reporting enterprises indicated that their employees were covered under a group life insurance and health insurance policy.

Salary survey report

Thirty-nine per cent of the entities were defined as medium-sized with 50 to under 250 employees, 43 per cent were defined as small with 10 to under 50 employees, and 13 per cent were defined as micro, with one to ten employees. Five per cent of the survey sample did not provide data on the number of employees. Sectors covered included distribution, financial services, government, manufacturing and services.

The salary survey report claims that each of the five industries was adequately represented, even though the survey is not derived from a nationally representative derived sample of SMEs.

The range of the value of group health coverage was from a low of one times the annual salary, to three times the annual base salary.

A few companies had plans non-reflective of base salary ranging from $250,000 to $500,000.

In terms of health insurance, some employees covered 100 per cent of monthly premiums, others asked for contributions ranging from 10 to 95 per cent.

For pensions, approximately 60 per cent of reporting companies did not have a policy in place but reported the desire to implement the benefit in the future.

The remaining 15 per cent did not report on the benefit.

For those with a plan, employer contribution ranged from five to eight per cent of basic pay, and the range for employee contribution was five to 15 per cent of basic pay.

The average vesting period was between three and 10 years.

The total vacation leave ranged between two and 13 weeks per annum, and this was dependent on employment tenure and position rank.

It was found that almost all participating enterprises were more likely to give vacation leave that was in excess of labour law stipulations.

One company within the distribution sector offered three months' vacation leave with pay, with an additional two weeks available on the presentation of a doctor's certificate.

The service sector, including government agencies surveyed, was more prone to offering the longest vacation time.

Reported sick days entitlement ranged from 10 to 21 days per annum.

Labour law compliance

Approximately 60 per cent of respondents were in compliance with the labour law. Enterprises gave the exact amount stipulated as per the statute.

The remaining 40 per cent exceeded stipulations, with the services sector falling again in this generous category.

Maternity leave was provided to employees of all participating enterprises.

About 20 per cent of the enterprises allowed three months with pay, which exceeded the labour law requirement of 12 weeks or 60 days with pay.

The highest allotment was three and a half months with pay. Eighty per cent provided this leave as per labour law stipulations.

Compassionate leave in the form of bereavement leave was an added benefit and provided by approximately 40 per cent of respondents, although half did not have formal policies on the issue. The number of days ranged from three to 10 days per annum.

Some companies gave study leave ranging from three to 21 days per annum. Others offered days off for examinations. The finance sector - including micro-finance management consultancy, accounting and auditing, credit unions and general insurance providers - was the most likely to offer this benefit and also most likely to offer the longest study leave.

A majority of SME respondents, just under two-thirds, said they paid overtime, with a portion of the respondents saying they compensated employees at higher rates than the law required as incentive to workers.

avia.collinder@gleanerjm.com