Salary - what is it? What does an employee's salary include?

In employment, 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 are the other ones, what are their advantages and disadvantages?

Pay Options

Employers can easily confuse themselves and confuse their employees without understanding, for example, the difference between the rate and salary. Of course, any option can be called a salary and not figure out what it consists of, but will it be right? It is much smarter to think about what influences the amount of income and what does not. Perhaps, for the performance of certain duties, it is worth asking the authorities for a pay increase? So it is simply necessary to understand the intricacies of terms related to wages.

There really aren't many options. There are tariff, tariff-free and mixed labor. 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, There are different calculation schemes based on functionality and factors important for productivity. So, the salary may depend on the results of the work of not only one person, but also, for example, a group;
• time-based form, in which wages depend on the qualifications of the employee and the time spent. It also implies different systems of calculation.

As for the tariff-free and mixed varieties, as a rule, they do not imply specific indicators and results of the work of employees, while evaluating 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 efficient as possible, so the dependence of the amount of money paid and the time or effort spent should be completely understandable.

Salary

This is one of the most commonly used options, which belongs to the tariff variety. It has been successfully used for quite a long time and in various fields. The salary of an employee is a fixed part of the salary, which is paid on the condition that the month was worked out in full, that is, there were no sick days, vacations, time off, etc. In other words, this is a "solid" part of the salary that will be accrued, even if the results labor activity is zero. The amount of the salary is constant and prescribed in the employment contract, any changes are made by signing additional agreements with the employee.

Applications

Official 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, such a wage scheme is used by state employees. This category includes doctors, teachers, civil servants, the military, etc. In this case, this form of payment between the employer and the employee is extremely convenient and predictable. For greater convenience, even staffing tables are being developed and showing a fork of salaries for people of various professions with different qualifications.

In addition, part of the salary scheme can be applied in the field of sales. In addition to a small but constant part of the earnings, the employee receives bonuses depending on the effectiveness of his activities. For example, the employer pays him a percentage of completed transactions and concluded contracts.

It is also worth remembering that salary is the amount of earnings before taxes. So, when signing an employment contract, it is necessary to take into account that the figure prescribed in it in any case does not reflect the amount of money that can be received as a result of work.

What does it consist of?

As in the case of civil servants, and in commercial organizations, the salary is understood to be about the same thing. And this part of the earnings includes only the amount set by the employer. A few years ago, the salary could not be lower than the minimum wage, but the current legislation allows this - if the monthly salary still exceeds this value. In order to achieve this, various allowances, coefficients, bonuses, etc. are applied.

If we are talking about employees of the public sector, then qualifications, length of service, district, special conditions and many other factors are taken into account, and not just the position. And then the meager, it would seem, the amount of earnings can grow several times. The salary itself may also in some cases 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 at the end of the month should, according to the law, be higher than the minimum wage.

The same applies to commercial structures. Percentages from sales and transactions, bonuses at the end of the month and other allowances are designed to make work in fact more highly paid. Initially, the salary does not include all this.

Rate difference

In the understanding of the majority of the inhabitants, there are no fundamental differences between these two terms, but this is not so. The rate is the full salary without tax deductions, but with coefficients, allowances and bonuses already applied. It is much closer to what the employee actually sees as his income. Another thing - Salary - in this case a synonym. It's easy to get confused, but it's better not to, because the difference between the two amounts behind these terms can be huge.

Advantages and disadvantages of salary

However, this form of calculation entails difficulties for accountants. Instead of accruing and posting the same amounts, they have to constantly update data on bonuses to the earnings of certain employees.

For the employees themselves, the salary is also not always a convenient scheme, even with good and regular bonuses, first of all, this applies to commercial companies. It is impossible to plan expenses for a long time, since it is somewhat difficult to calculate earnings in the following months. There are also so-called seasonal downturns in business activity, when wages can be very small. On the other hand, having worked hard, you can expect a very high assessment from the employer, and in monetary terms.