Remuneration is the compensation an employee receives in return for his or her contribution to the organization

Remuneration occupies an important place in the life of an employee

Wages and Salary : -Wages refer the hourly rates of pay, salary refers to the monthly rate of pay, wages and salaries are subject to annual increments. They differ to emp. To emp. Depend upon the nature of job , seniority and merits.

Incentives : - also called ‘payment by result’ - paid in addition to wages and salaries. depend upon productivity, sales profit - there are 1. individual incentives scheme 2. group incentives scheme

Fringe benefits : - These include such employee benefits as provident fund, gratuity, medical care, hospitalization, accident relief, health insurance, canteen, uniform and like

Perquisites : - These are allowed to executives and include company car, club membership, paid holidays, furnished house and like

Factors can be categorized by : 1 External Factors 2 Internal Factors

External Factors

Labour Market

going rate

productivity

Cost of Living Labour Union

Labour laws

payment of wage act,1936

the minimum wages act,1948

the payment of bonus act,1965

the equal remuneration act,1976

Society

The Economy

Internal Factors

Business Strategy

Job Evaluation and Performance Appraisal

The Employee

Skill Based Pay

Pay Reviews

Pay Secrecy

Comparable worth

International Pay