Remuneration Home

What is Remuneration?

Remuneration is another name for getting paid.

Methods of Remuneration

Wage

A wage is an hourly pay. A wage also means the more work you do, the more money you get paid. For example, the national minimum wage is £6.08 per hour, and that is for people of the age of 24.

Salary

Saraly is something where you are paid a fixed amount throughout the year and it is stated in your employment contract and compared to a wage, you get paid a fixed amount throughout the year.

Some people like to have a wage rather than a salary because you get paid for overtime and the more hours you do, the more your wage is.

Some people like to have a salary rather than a wage because you get paid a fixed amount no matter how much work you do so for example if you only worked for an hour when you are working for a salary you still get a full days pay.

An employer will also demand a certain amount of work done.

Overtime and commission

Overtime

What is overtime?

Overtime is more work people do after their normal working hours. In addition overtime is normally, paid more than regular working hours. The most common form of overtime pay is, time and a half. Time and a half is just simply, your normal hourly pay but with 50% extra pay.

Commission.

What is commission?

Commission is normally paid to people who have low wages. Commission can also be used for jobs like and auctioneer. For example, if you were to go to an auction and the auctioneer sold an item for you, then he/she will get a percentage of the total amount.
Question Time!
Q1. Why is the business willing to pay overtime to it's employees?

A1. Business' will pay overtime to it's employees to encourage them to work for longer hours. If another employee is out sick, an employer will pay it's employees overtime to cover for the person who isn't in.

Q2. Calculate the total cost of fulfilling the order.

A2. Cost of order £400
Cost of ten staff for 5 hours at £10 per hour = £500
Selling order for £1000.
The company will make £100 profit

Q3. What advantages and what disadvantages did accepting the order bring to to business?

A3. Advantages
  • Business made a profit
  • Offer staff more hours
  • Increased their reputation.

Disadvantages
  • Lost some profits by paying staff to do other time.
  • Might have more rush jobs.
  • Staff might get tired and wont be able to do proper job as fast as usual