Three methods employers use to compensate employees include salary, hourly wage and commission.
Types of wages
- Salary wages. If an employee earns a salary, they receive a fixed, regular payment per year. ...
- Hourly wages. ...
- Overtime wages. ...
- Retroactive pay. ...
- Commissions. ...
- Bonus pay. ...
- Severance pay. ...
- Accrued time off pay.
There are three ways to pay employees:
- Direct deposit;
- Payroll card, and.
- Warrant (check).
There are two main types of compensation:
- Direct compensation (financial)
- Indirect compensation (financial & non-financial)
Individual Pay Rates
This is the most common pay structure and is used by most businesses in one form or another. Individual pay rates are when each employee has their own set salary determined by their employer, based on their role within the company. The rate of pay may be set on an annual or hourly basis.
Basic-rate systems pay workers a fixed amount on an hourly, weekly or monthly basis. These are simple to operate but do not offer many incentives to workers. Variable or incentive schemes are where all or part of a worker's pay is based on performance, skills, results and/or profits.
The four most common types of payroll schedules are monthly, semi-monthly, bi-weekly, and weekly, and each has its own set of pros and cons that determine which approach best fits a given organization.
Regular wages means straight-time earnings excluding all premium payments and overtime, based on an average 37 ½ hour work week.
If you're an employee who is paid a salary (instead of an hourly rate), you will receive a set amount of compensation on a weekly or less frequent basis. Employees who are compensated on a salary basis receive their full pay, regardless of how many hours they work in a week.
Contingent pay, also called incentive and variable pay, are arrangements where some or all of employees' earnings are dependent on some measure of performance.
Usually, the basic salary is 40% to 60% of CTC (Cost to Company). The statutory components: bonus, PF, gratuity and other benefits are determined based on the basic salary. An increase or decrease in the basic salary calculations can affect the employee's CTC.
Base pay can be expressed as hourly, monthly, or yearly. For example, someone who earns a base salary of $25/hour can also be said to have a base monthly salary of $4,333/month or a base annual salary of $52,000/year. Base salary does not take into account other forms of compensation.
The salary scale structure for Pay Level 3 starts at Rs 21,700 and ends at Rs 69,100. The salary scale structure for Pay Level 4 starts at Rs 25,500 and ends at Rs 81,100 The salary scale structure for Pay Level 5 starts at Rs 29,200 and ends at Rs 92,300.
The pay structure is segregated into 18 different pay levels in the pay matrix. The Pay Commission assigned to implement changes in salary structure refers to the pay matrix table while recommending the changes in pay structure.
Pay Matrix Level 4 is equal to the Grade Pay of 2400 in the 6th CPC regime. As per the pay matrix table, the starting basic salary of pay level 4 is Rs. 25500 and the maximum basic salary is Rs. 81100.
Irregular payment means any payment made to the financer that is not a periodic payment.
Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.
Hypernym for Regular payment:
remuneration, disability check, installment buying, rente, disability payment, installment plan, pay, wage, time plan, earnings, stipend, salary, pension, annuity.
Overtime pay is calculated: Hourly pay rate x 1.5 x overtime hours worked. Here is an example of total pay for an employee who worked 42 hours in a workweek: Regular pay rate x 40 hours = Regular pay, plus. Regular pay rate x 1.5 x 2 hours = Overtime pay, equals.
Employment termination payments (ETP) are liable for payroll tax. The liable amount of an ETP is the amount you paid minus the income tax exempt component. Liable termination payments include: payments relating to unused annual leave, sick leave, long service leave, or a bonus or leave loading.