Components of Employee

Remuneration/Compensation Package:
The remuneration packets of an employee includes wages/salary
,incentives, fringe benefits , perquisites and finally non-monetary
benefts.
Details of Components of Employee Remuneration/compensation
package:
1.wage/salary: Wage is the payment given to employee by the
employer. The wage rate is decided by the employer .Wage is the
hourly-rate of pay while salary refers to monthly rate of pay.
Salary includes allowances and also annual increment. Salary
payment is not uniform to all employees it depends upon nature of
job, responsibilities, merits available, status , seniority of the
employee. Wages are linked with the cost of living of the
employee in which income tax and p.f are deducted.
2.incentives:Incentives are addition to regular wage
payment.incentives depend on productivity,sales,profit,cost
reduction efforts etc. The purpose behind incentives is to
encourage/motivate employees to take more interest in the work
and according to the results get the incentives. As incentives are
payments by results.
3.fringe benefits: These are monetary benefits provided to
employees. These includes:(a)provident
fund,(b)gratuity,(c)medical care,(d)hospitalization
payment,(e)accident relief,(f)healthand group
insuarance,(g)subsidized canteen facility,(h)Recreation facility
and(i)provision of uniforms to employees.
4.Perquites:there are special benefits offered to
managers/executives. The purpose is to retain competent
executives by offering them special benefits. It
includes(a)company car for travelling (b)club membership (c)paid
holidays (d)furnished house/accommodation (e)stock option
schemes, etc
5.Non-monetry benefits: They include comfortable working
conditions, impartial promotions, support to workers facing special
problems, provision of welfare facilities to employees.

System of Wage payment:

There are two basic system of wage payment. These are (a)
Time Rate system and (b) Piece Rate system
(A)Time Rate System
Meaning of time rate system/Time Wage System:
Time rate system or time wage payment