Employee remuneration refers to the compensation and rewards given to employees for their work. It includes wages, salaries, incentives based on productivity, sales or profit, fringe benefits like medical care and provident funds, and perquisites for executives. Remuneration is important because it leads to employee motivation, affects productivity and work performance. The components of remuneration are wages, salaries, individual and group incentives, fringe benefits, and non-monetary benefits like growth opportunities.

1. EMPLOYEE
REMUNERATION

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