EMPLOYEE REMUNERATION

INTRODUCTION

• Employee Remuneration refers to the reward or compensation given to the employees for their work performances. Remuneration leads to employee motivation.

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Why is it important?

• Leads to employee motivation

• Affects employee productivity

• Affects work performance

Components of remuneration

• Wages and Salary

• Wages refer to the hourly rates of pay,

• salary refers to the monthly rate of pay,

• wages and salaries are subject to annual increments.

COMPONENTS CONTINUED…• Incentives: also called ‘payment by result’

• paid in addition to wages and salaries.

• depends upon • productivity

• sales

• profit

1. individual incentives scheme

2. group incentives scheme

COMPONENT OF REMUNERATION• Fringe benefits :

• These include such employee benefits as provident fund, gratuity, medical care, hospitalization, accident relief, health insurance, canteen.

• Perquisites - These are allowed to executives and include company car, club membership, paid holidays and furnished house

Non monetary benefits

• Challenging job responsibilities

• Recognition of merit

• Growth prospects

• Comfortable working conditions

• Competent supervision