When employing, a huge number of payment schemes are used between the employer and the employee. Salary is one of them, but not the only one. What else are there, what are their advantages and disadvantages?
Wage Options
Employers can easily get confused themselves and confuse their employees, not understanding, for example, the difference between the rate and salary. Of course, any option can be called a salary and not understand what it consists of, but will it be right? It is much smarter to think about what affects the size of income and what does not. Perhaps, for the performance of some duties, it is worth asking the authorities about a salary increase? So to understand the intricacies of terms related to remuneration, it is simply necessary.
There really aren't many options. Distinguish between tariff, non-tariff and mixed varieties of remuneration . In turn, the first is also divided into different types:
- piecework form in which it is possible to objectively evaluate labor indicators by establishing, for example, production standards. There are different calculation schemes based on functionality and factors important to performance. So, the salary may depend on the results of work not only of one person, but also, for example, of a group;
- time-based form in which wages depend on the qualifications of the employee and the time spent. Also implies various calculation systems.
As for the non-tariff and mixed varieties, as a rule, they do not imply specific indicators and employee performance, while assessing their participation in the production process in terms of performance. In any case, the calculation scheme should be as simple and transparent as possible. After all, the employer is interested in making the work as productive as possible, so that the dependence of the amount of money paid and the time or effort spent should be completely understandable.
Salary
This is one of the often used options, which refers to the tariff variety. It has been successfully used for quite some time in a wide variety of fields. An employee’s salary is the invariable part of the salary that is paid on condition that the month has been worked out completely, that is, there were no sick days, vacations, days off, etc. In other words, this is the “hard” part of the salary that will be accrued even if the results labor activity is zero. The salary is fixed and specified in the employment contract, any changes are made by signing additional agreements with the employee.
Fields of application
Salary is a concept that is directly associated with the state, so this phrase is similar to clericalism. And that's right, first of all, a similar wage scheme is used by state employees. This category includes doctors, educators, civil servants, the military, etc. In this case, this form of payment between the employer and employee is extremely convenient and predictable. For greater convenience, staffing schedules and tariff grids are even being developed , showing a salary fork for people of various professions with various qualifications.
In addition, partially with the salary scheme can be applied in the field of sales. In addition to the small but constant part of earnings, the employee receives bonuses depending on the performance of his activities. For example, the employer pays him a percentage of completed transactions and contracts.
It is also worth remembering that salary is the amount of earnings before tax deduction. So it is necessary to take into account when signing an employment contract that the figure specified in it in any case does not reflect the amount of money that can be received as a result of the work.
What does it consist of?
As in the case of civil servants, and in commercial organizations, salary is understood to be approximately the same thing. And this part of earnings includes only the amount set by the employer. A few years ago, the salary could not be lower than the minimum wage, but current legislation allows this - if the monthly salary still exceeds this value. In order to achieve this, various premiums, odds, bonuses, etc. are applied.
If we are talking about public sector employees, then qualifications, length of service, district, special conditions and many other factors are taken into account, and not just the position. And then the seemingly miserable amount of earnings can grow several times. The salary itself, in some cases, may not be paid in full, for example, if the employee went on vacation or on sick leave. But in any case, the amount of accrued earnings for the month should be by law higher than the minimum wage.
The same goes for commercial entities. Interest from sales and transactions, monthly bonuses and other allowances are designed to make the fact of work more highly paid. Initially, salary does not include all this.
Bid difference
In the understanding of most ordinary people there are no fundamental differences between these two terms, but this is not so. A rate is a full salary without tax deductions, but with already applied odds, allowances and bonuses. It is much closer to what the employee really sees as his income. Another thing is the tariff rate. Salary is a synonym in this case. It is easy to get confused, but it’s better not to do this, because the difference between the two sums behind these terms can be huge.
Advantages and disadvantages of salary
Such a system of remuneration has its pros and cons for both parties: the employer and the employee. Firstly, this scheme is more motivating than stable full income, not taking into account the results of activities. In addition, it allows the company to more flexibly and effectively approach the issue of spending the wage fund.
However, this form of settlement entails difficulties for accountants. Instead of accruing and spending the same amounts, they have to constantly update data on allowances for earnings of certain employees.
For the employees themselves, salary is also not always a convenient scheme, even with good and regular bonuses, primarily for commercial companies. It is not possible to plan expenses for the long term, since the calculation of earnings in the following months is somewhat difficult. There are also so-called seasonal downturns in business activity, when the salary can be very small at all. On the other hand, having worked hard, you can expect a very high assessment from the employer, and in monetary terms.