Remuneration

What is Remuneration?

Remuneration is the sum of the base salary along with the commissions, bonuses, overtime pay, as well as medical and vacation pay.

What are the types of Remuneration?

Remuneration is available to the employees in the form of 6 types of compensations, these are:

1. Base salary
2. Short-term incentives/bonuses
3. Employee benefits
4. Paid expenses in the form of reimbursement
5. Long-term incentive plans
6. Insurance-based compensation

Is Remuneration the same as salary?

Remuneration is the compensation that encompasses all the financial aid that is received by the employee. Therefore, remuneration includes the base salary among bonuses, overtime, travel reimbursement, sick pay, insurance, and more.

What is the purpose of Remuneration?

Remuneration is the sum of all types of compensations that are owed to the employee for all their efforts in the different areas of work. The purpose of this process is to reward the employee with all the financial aid that they deserve and motivate them to work efficiently and effectively. All in all, remuneration helps maintain employee productivity and improve work performance effectively.

What does total remuneration include?

Total remuneration will come down to the sum of the base salary with all kinds of employee benefits that come in the form of gym memberships, food coupons, travel reimbursements, counselling services, along with all the annual bonuses, etc.

In conclusion, remuneration refers to the sum of all the financial compensations that will be handed to an employee in a particular duration.

What is the equal remuneration act?

The equal remuneration act ensures that an organisation must maintain the payment of equal wages for both female and male workers. Under this act, no organisation is to discriminate against female employees for disparities in compensations, employee transfers, promotions, and more.

Modern recruitment software even pairs applicant tracking with customer relationship management (CRM).

How to calculate Remuneration?

Adding up the base salary along with all the financial aid an employee receives in the form of employee benefits and bonuses, will help you calculate remuneration.