Compensation
Purpose
The purpose of this policy is to establish compensation standards and requirements for Maryland Global Initiatives Corporation (MGIC) employees.
Background
MGIC engages employees via Employer of Record (EOR) service providers, on behalf of Requesting Units of the University of Maryland, Baltimore (UMB) and other universities that receive MGIC services through an agreement with UMB (for purposes of MGIC policies only, these universities are referred to as “Affiliate Entities”). The EOR manages employment administration and payroll processing, including mandatory payroll deductions and withholdings, in compliance with applicable local labor laws. MGIC contracts and manages the EOR company, oversees the compliance responsibilities of MGIC and of UMB and Affiliate Entities to which MGIC employees are assigned, and collaborates with the EOR and Requesting Units to manage employee compensation adjustments and related status changes.
The International Operations (IO) division of UMB’s Administration and Finance department administers the MGIC mechanism.
Policy Statement
Salary Determination and Benefits Package Upon Hire
- Base salary for new MGIC hires shall be determined and approved by the Requesting Unit, following the Requesting Unit’s applicable internal salary scales and compensation policies.
- Salary determinations and disclosures may be subject to local labor laws, e.g. the European Union Pay Transparency Act. MGIC and Requesting Units must comply with all applicable laws, as advised by the EOR service provider and/or local legal counsel.
- Benefits provided to the MGIC employee through the EOR shall adhere to minimum statutory requirements of the applicable labor law. Any additional voluntary or discretionary benefits proposed by the Requesting Unit over and above the minimum statutory requirements must be allowable by law. All legally required benefits and any additional benefits will be funded by the Requesting Unit. (See MGIC Benefits Policy).
- Should the proposed salary and/or benefits package for a specific position not comply with local labor law or other applicable laws of the jurisdiction, as confirmed by the EOR, MGIC will not fill the position.
Payment, Pay Period and Deductions
Specific arrangements for employee payments, pay periods, and deductions are processed by the EOR in accordance with the local labor laws, as reflected in the employment agreement and described in the Global HR Handbook.
Personal Advances
Personal salary advances are not permitted.
Overtime
Overtime is time spent performing official duties outside of normal hours of work and typically in excess of 40 hours, as designated by an employment agreement and in accordance with local labor law. MGIC specifies in the Global HR Handbook how overtime is managed in each location.
Salary adjustment, Raises and Bonuses
Salary adjustments, raises and bonuses must be approved by the Requesting Units.
Taxes and Withholdings
The EOR will withhold income taxes for the country of employment and other employee payroll deductions required by local law, including mandatory contributions to pensions and other applicable funds for employees. Requesting Units must fully fund all mandatory taxes and withholdings paid by the EOR on behalf of MGIC and the employee.
Scope
This policy applies to all MGIC employees and the Requesting Units to which MGIC employees are assigned.
Responsibilities
- IO International Human Resources Manager: Coordinate compensation packages and adjustments with Requesting Units and EOR. Maintain current and accurate Global HR Handbook and Country Schedules to reflect local labor law and EOR requirements in each location. Support MGIC personnel and their supervisors to understand and comply with applicable policies and procedures.
- Requesting Units: Comply fully with all aspects of this and related/referenced policies. Coordinate with IO to establish base salary and benefits packages and periodic adjustments for MGIC employees that comply with local labor laws and with Requesting Unit compensation policies as applicable. Manage and supervise employees to ensure policy and legal compliance.
Procedures
See MGIC Standard Operating Procedures
Documentation Requirements
See MGIC Standard Operating Procedures
References
- MGIC Global HR Handbook
- MGIC Policy on Benefits