Remuneration refers to the sum of money and compensation that an employee receives for their work. But what is Fixed Remuneration?
Fixed Remuneration Definition
Fixed Remuneration 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 their salaried workers as receiving fixed remuneration. The remuneration may sometimes become a point of negotiation 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 the reference to the number of hours the worker has worked or the quality services he has provided.