Remuneration And Benefits
Remuneration Package/s is a group of rewards received for employment, made up of one’s basic salary, incentives, and other benefits.
These rewards could be described in more detail as below:
Monthly Pay / Monthly Salaries / Weekly or Fortnightly Wages
Allowances
Fringe Benefits
Bonus Pay-outs
Cash on non-cash Incentives
Remuneration packages consist of two types, “Indirect and Direct” remuneration. Direct remuneration includes all monetary payments made to employees for the hours worked, and indirect remuneration includes all expenditure made by employers on behalf of employees, which could be referred to as intangible remuneration or “Fringe Benefits.
The benefits of a reasonable remuneration package promote employee job satisfaction and boost employee morale, which usually has a direct impact on better productivity within the workplace. These remuneration benefits could also include the elements of, medical aid, a provident or pension fund, meal and refreshments, a company vehicle, travel and other allowances, retirement annuities, and accommodation.
Package structuring could also be defined in more detail as a cost to company or basic salary component.
A cost to company component would be the expenditure an employer spends on an employee. An example of this would be an employee’s gross salary + all benefits included which would add up to the total cost.
A basic salary component would be the gross salary an employee regularly earns before any additional earnings or deductions have been included.
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