What Are the Different Types of Employee Remuneration?

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  • Written By: Autumn Rivers
  • Edited By: Angela B.
  • Last Modified Date: 14 February 2020
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One of the determining factors that most people consider before accepting a job offer is employee remuneration, which includes several components. While the paycheck is usually the first detail considered, many people also want to know whether they will get benefits that include health insurance and retirement plans funded by the employer. Another type of employee remuneration that is often expected is paid time off so missing work occasionally does not mean missing part of a paycheck. In addition, some companies offer free or discounted college tuition, daycare or cell phone plans, to name a few benefits.

The most basic type of employee remuneration is monetary compensation. This often comes in the form of a salary, which usually means employees make the same amount every month, regardless of the hours worked. Those with an hourly wage, however, are compensated for each hour on the job, so their availability and the employer's need for them both directly affect how much they make each pay period. On the other hand, those in sales often get commission, which means the more they sell, the more money they make. Some may get a base salary in addition, while others work on commission alone.


Employee remuneration also often includes insurance, particularly health coverage. For many full-time employees, the employer pays a portion of the health insurance premium so workers only have to pay some of the cost, which is usually taken out of each paycheck. Some employers even pay the entire cost of health coverage, and many also offer dental, vision and life insurance, all of which most employees find is cheaper to get through their job than on their own. In addition to paying part of the cost of insurance, many employers offer to match employee contributions to a retirement fund. Stock options also are sometimes offered so employees have a higher interest in the company doing well financially.

Employees usually expect some paid days off, at least if they are considered full-time workers. For example, they may get a set number of sick days, personal days and vacation days so they do not lose money each time they miss work. Some employers also allow workers to be compensated at the end of each year for every paid day off that they did not take, which can act as an incentive for employees to avoid missing work. This type of employee remuneration may make an employer more attractive to potential staff members.

Many companies also offer a number of minor benefits that can add up for employees. For example, they may offer free or inexpensive daycare for children, reduced or free college tuition for employees, or at least a discount on their own products or services. Some companies also pay for cell phone service or the use of a company car, provided these tools are necessary for the job.



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