Competitive Compensation and Best in Class Benefits

Hiring Day 1, woman of color shaking manager's hand
Hiring Day 1, woman of color shaking manager's hand

Competitive Compensation and Best in Class Benefits

Our Compensation Approach

Specific to compensation, P&G’s pay scales are competitive with the finest global and local companies in the markets where we operate. This is not a comparison to just any company, but the very best companies in a market where we compete for similar business or talent, and with whom we also share a similar approach in reward philosophy.

The principles governing our approach to pay are:

  • Pay Competitively
  • Pay for Performance
  • Benchmark against competitors doing like work to ensure pay equity

For campus graduates base salaries are determined by the degree you have obtained and its value to the function that hires you. These are standardized across the region for all off-campus entry level hires. New hires with prior relevant work experience are evaluated individually against broader compensation standards for the level at which they enter.

The STAR Award is a variable portion of your annual pay that is determined by Business Unit performance and Total Company performance. We are currently transitioning to higher levels of variable pay and that schedule is detailed in the table below.

STAR Target as % Base Salary:

Band Level FY18/19 FY19/20 FY20/21 FY21/22
2 0% 2% 4% 7%
3 10% 12% 15% 15%

This award is not offered for most entry level roles. Please refer to your offer letter to see if your role qualifies for immediate entry into the program.

The formula for the STAR award calculation is:

Key:
Base Salary = Annualized base salary as of June 30
STAR Target % = STAR Target percent based on Band level (target is adjusted when more than one level worked during the FY)
BU Factor = Business Unit where the employee has made a significant contribution weighted at 70%.
Company Factor = The results of Company performance relative to Organic Sales and EPS growth weighted at 30%

Retirement Plans

New hires are automatically enrolled in P&G's two retirement plans:

  1. The Profit Sharing Trust and Employee Stock Ownership Plan (PST Plan)
  2. The Savings Plan (pre-tax 401(k) & Roth 401(k) contributions)

Expand the sections to learn more details.

P&G's retirement plan for our United States employees is the oldest continuous profit-sharing plan in the country (it was introduced by the grandson of one of our founders!). The P&G Profit-Sharing Trust and Employee Stock Ownership Plan (PST Plan) is designed to promote our principle that the interests of the Company and the individual are inseparable. This is done by making eligible participants part-owners in the Company through P&G stock ownership.

The PST Plan is 100% Funded by P&G— with no contribution from the employee! The contribution is based on individual salary and Plan Credit Years.

  • As a new hire P&G’s contribution to the PST will start at 5% of your annual salary for the first fiscal year containing your original hire date and will increase .26% for each earned Plan Credit Year thereafter, up to a maximum of 11.25% at 25+ Plan Credit Years.
  • A Plan Credit Year is earned by working at least 1,000 hours within the Plan (fiscal) Year
  • The Company contribution to the employee account is invested in P&G stock

The Savings Plan is a 401(k) plan that allows you to make pre-tax and/or Roth salary contributions to your own account, to increase your retirement savings and diversification. There is no “company match” to your salary contributions because the Company makes a generous contribution to your PST Plan account.

  • New hires are auto enrolled in the traditional before tax 401(k) at a contribution of 5% of base wages per paycheck
  • You may contribute to the Plan on both the traditional pre-tax and Roth after-tax basis as a new hire
  • Auto-enrollment includes an auto-escalate feature that increases employee contributions by 0.5% every year, up to a maximum of 10%, or you can set your own auto-escalate increase percentage or opt out
  • You will be able to increase, decrease or stop the 401(k) salary contribution to the Savings Plan at anytime
  • Contributions are invested in the Plan’s default fund (Pre-Mixed B-Growth and Income) or according to the employee’s election from several different investment choices, including P&G stock

Benefits at a Glance

Download our Benefits at a Glance document to get detailed information about our individual benefits programs, which include:

  • Health insurance
  • Company-contributed profit sharing plan
  • Dental plan
  • Vision plan
  • Life insurance
  • Disability
  • Flexible spending plans
  • Vacation buy
  • Financial assistance for adoptions or surrogate matters
2021

P&G Benefits at a Glance

P&G Benefits at a Glance 2021P&G Benefits at a Glance 2021 thumbnail image

Paid Time Off

P&G has comprehensive benefits, policies and resources that ensure you can be “All in to Win” at work while also supporting your needs outside of the office.

This includes providing you paid time off, because we recognize that time away from the office gives you the space you need to balance your unique needs, circumstances and responsibilities—and perform at your peak.

Please note that these benefits may vary at manufacturing locations 

  • 15 vacation days at entry level
  • Pro-rated by calendar quarter in first year:
    • January-March- 100%
    • April- June- 75%
    • July-September- 50%
    • October- December- 25%
  • Option to purchase additional vacation during Annual Enrollment (Oct-Nov) for the next calendar year.

There are 12 corporate recognized holidays:

  • New Year's Day Holiday (Observed)
  • Martin Luther King Jr.'s Birthday Holiday
  • President's Day Holiday
  • Memorial Day Holiday
  • Juneteenth
  • Independence Day Holiday (Observed)
  • Labor Day Holiday
  • Thanksgiving Day Holiday
  • Day After Thanksgiving Holiday
  • Christmas Eve Holiday (Observed)
  • Christmas Day Holiday (Observed)
  • New Year's Eve Holiday (Observed)
  • We offer generous paid time off:
  • You can take up to a year off work during your baby's first year through a combination of paid and unpaid leave time. We will work with you to customize time off to fit your life.
    • 16 weeks for birth mothers or an adoptive parent
    • 8 weeks for all other new parents (new fathers or partners)
  • We provide financial assistance for adoptions or surrogate matters.