When applying for a job, the applicant can be offered a large number of payroll schemes . What is salary and what types of remuneration still exist? What are the parts of the salary, what are its main pros and cons?
Payment Types
Not all employers can clearly explain what the employee’s salary will be made up of. Of course, it may seem that there is no difference what the salary consists of. The more you get, the better. But in some cases it will be useful to know what affects the amount of income.
In fact, there are not so many types of wages:
- Tariff. This type can be divided into piecework and time wage. The piece-form will help to objectively assess the coefficient of labor by setting the standard of production, for example. There are various calculation schemes based on factors and functionality. Moreover, the salary may depend on the result of work not only of one employee, but of the whole team. The time-based form takes into account the qualifications of the employee and the time spent on work.
- Non-tariff.
- Mixed.
The latest types of payment do not imply clear indicators, but employee participation in the production process is evaluated in terms of performance.
No matter what type of payment is used by the employer, the calculation scheme should be as clear and transparent as possible.
Salary and its application
Salary is considered the most frequently used option related to the tariff type of payment. What is a salary? This is the unchanged part of the salary that is paid for a fully worked month (without sick days, vacations, etc.), that is, it is the solid part of the salary calculated even when the results of labor are zero. The salary is constant and is prescribed in the employment contract for employment. If any changes are expected, an additional agreement is signed with the employee.
Where is most often the salary part? Firstly, in the public sector. This includes teachers, health workers, military, civil servants. In this case, the salary is very convenient and as transparent as possible. For even greater convenience, organizations are developing a staffing table and a tariff schedule showing the difference in payments depending on qualifications and profession. Secondly, in the field of sales. Here the salary and various allowances and bonuses are widespread. This type of salary is called a fixed figure in the employment contract. It is indicated without compensation, allowances and incentive payments. It turns out that the seller, in addition to the salary, can receive a percentage of sales and a bonus for fulfilling or overfulfilling the plan.
It should also be remembered that salary is the amount that is indicated without withholding tax deductions.
Structure
In whatever area the salary is applied, its composition includes only the amount indicated in the employment contract. If we compare the payments of different time periods, for example, the salaries of 2013 should not have been less than the subsistence level, now this is acceptable, but provided that the final salary is higher. For this, they pay extra compensation and allowances. In the case of state employees, experience, qualifications, place of work, etc. are taken into account.
If the employee was sick or was on vacation, the salary is not paid in full, but based on the time worked.
Difference from bid
For ordinary inhabitants, there is no difference in what salary and rate are. But under the rate understand the full salary without tax, but with the already applied ratios, premiums and bonuses. The rate is much closer to the actual total earnings of the employee.
But if it comes to the tariff rate, then what is the salary in this case? This is a synonym. In principle, there is nothing complicated, but it is not worth confusing the salary and the bid, because the difference in the amounts is quite significant.