2. INTRODUCTION
• Employee Remuneration refers to the reward or
compensation given to the employees for their
work performances. Remuneration leads to
employee motivation.
.
3. Why is it important?
• Leads to employee motivation
• Affects employee productivity
• Affects work performance
4. Components of remuneration
• Wages and Salary
• Wages refer to the hourly rates
of pay,
• salary refers to the monthly
rate of pay,
• wages and salaries are subject
to annual increments.
5. COMPONENTS CONTINUED…
• Incentives: also called ‘payment by result’
• paid in addition to wages and salaries.
• depends upon
• productivity
• sales
• profit
1. individual incentives scheme
2. group incentives scheme
6. COMPONENT OF REMUNERATION
• Fringe benefits :
• These include such employee benefits as
provident fund, gratuity, medical care,
hospitalization, accident relief, health insurance,
canteen.
• Perquisites - These are allowed to executives and
include company car, club membership, paid holidays
and furnished house
7. Non monetary benefits
• Challenging job responsibilities
• Recognition of merit
• Growth prospects
• Comfortable working conditions
• Competent supervision
