Meaning of remuneration
It is known as remuneration to the payment or remuneration for a service or work established in the employment contract. Remuneration is the amount of money or things given to a person as payment for their service or work.
In view of the meaning given above, it can be deduced that remuneration is synonymous with salary or salary. As such, remuneration can be seen as compensation in the workplace, since the worker or employee performs tasks with the purpose of increasing the capital and prestige of the company, while the employer pays for his or her work.
In principle, there is a minimum remuneration or salary which is defined by law, being adjustable every year taking into account the cost of living at that time.
However, an employer can receive above a minimum wage, since everything depends on the salary policy of each company, since it can use the structure of positions and salaries, which are the obligations to be performed in the job that will attribute the salary to be received by the employer.
On the other hand, variable remuneration complements the fixed remuneration, previously identified, such as sales commissions, overtime, merit awards, among others. If you receive both remunerations, you are in the presence of mixed remuneration.
The payment can be monthly, weekly, daily, in reference to the last assumption it is called a day.
Finally, it must be taken into account that the salary must be a qualified means to cover all the basic needs of an individual, managing to provide a dignified personal and family life for its members.
Compensation administration
Remuneration administration is the procedure that seeks to establish the fair structure between salary and function to be performed in the job. Likewise, it is responsible for studying the market to designate similar remuneration for similar functions in other organizations.
Gross and net remuneration
Gross remuneration is the salary that a worker receives without making withholdings or contributions for social security, and other taxes required by the State.
In relation to this term, it is also essential to understand the net remuneration, which is the salary that the employer receives already with the withholdings and contributions extracted.
Compensation Basics
Remuneration is seen as compensation in money or kind that the worker receives for the service or work provided to the company.
Due to the importance that remuneration generates in the life of an individual since it allows him to cover all the essential expenses of himself and his family such as clothing, food, housing, among others, it is recognized as a right established in the Charter Magna of the country