Fixed Remuneration Definition

Remuneration definition
Remuneration refers to the sum of money and compensation that an employee receives for their work. Remuneration includes salary, commission, compensation, and wages.


But what is Fixed Remuneration?

Fixed Remuneration Definition
Fixed Remuneration or fixed salary is the compensation that an employee gets annually irrespective of the number of hours or the quality work he/she has done. It is generally another term for a fixed salary or pay. The high-level executives, corporates frequently use the word “Remuneration” in place of Salary to indicate the total compensation package consists of more than wages.

A worker can be paid based on the number of hours he/she has worked. The hourly workers are assigned a particular rate at which they work. The number of hours an employee works, the more they get paid multiplied by the standard rate. The employer can have an hourly employee who works for specific hours and get paid. In such a condition employer is bound to pay for extra hours spent by the employee.

Salaried employees have their remuneration fixed annually. The amount to be paid includes incentives and other services irrespective of the number of hours or amount of work. In many countries, only a specific set of employees can be considered salaried. For example, in the United States, computer workers, professionals, and executives are paid a fixed wage. Hence, Salary is a primary type of Fixed Remuneration.

Some ordinary companies may not refer to their salaried workers as receiving fixed remuneration. The remuneration may sometimes become a negotiation point over executive compensation packages for board members and chief of corporations. For this, some consulting firms advise regarding the policies relating to remuneration.

A fixed remuneration package generally includes services in the form of money, or even it may consist of stocks and incentives. Besides all this, any item of value is also included in the fixed remuneration package. Once a fixed remuneration package is assigned to the employee, it is mandatory to pay without reference to the number of hours the worker has worked or the quality services he has provided.

How is the remuneration of directors fixed?
The United States must, on an annual basis, disclose detailed information regarding the remuneration of all directors as well as the Chief Executive Officer, Chief Financial Officer, and the three other most highly paid officers. For example, disclosure is required regarding beneficial ownership of public company securities by persons owning 5% or more of any class of the company’s voting securities and executives and directors; transactions between the company and related persons (generally defined to include officers, directors, 5% beneficial holders, and close family members of these individuals); disclosure regarding a company’s processes and procedures for the consideration and determination of executive and director remuneration.

Daniel Smith

Daniel Smith

Daniel Smith is an experienced economist and financial analyst from Utah. He has been in finance for nearly two decades, having worked as a senior analyst for Wells Fargo Bank for 19 years. After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management. At, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification. Read more on Daniel Smith's biography page. Contact Daniel:

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