Remuneration is the payments system adopted by a business to pay and reward its employees.
Types of remuneration
There are many different types of remuneration used by a business. A lot of the time, workers in the same company may receive different payment systems depending on the job they do.
The different types of remuneration are:
- Wages. This is a style of remuneration where workers are either paid on a piece rate or a time rate. In a piece rate, workers are paid a certain amount for every product they complete or task they finish. With a time rate, workers are paid a certain amount every hour. People who work in manufacturing or retail will often get paid in wages.
- Salary. With this type, workers are paid a fixed amount at the end of every year, regardless of the amount of work they have done. This type of remuneration is good for non-manual jobs such as those working in an office, as they can't really be paid in any kind of piece rate.
- Commissions. A commission is a payment where staff are paid a percentage of what they manage to sell. This is very useful in the retail sector, or perhaps for selling houses. When a worker sells a house, they will receive some of that payment as their reward for the job. Hard-working staff will earn more than lazy workers with this type of payment system.
- Bonuses. It is quite common for staff in…