Remuneration Flashcards
What’s remuneration?
REMUNERATION is the combination of pay and fringe benefits that employees receive.
What’s wage?
WAGE means an hourly rate for the number of hours worked. They are normally paid on a weekly basis.
What’s salary?
SALARY means an annual sum that is divided into monthly amounts. It is normally paid on a monthly basis.
What’s basic pay?
BASIC PAY means pay for the usual working week: i.e. before overtime or bonuses
What’s gross pay?
GROSS PAY means total pay before deductions = Basic pay plus overtime or bonuses
What’s net pay?
NET PAY means pay after deductions: i.e. what workers actually receive.
What are statutory deductions?
STATUTORY DEDUCTIONS have to be deducted from employees’ pay by law: e.g. Income Tax and National Insurance Contributions
What are voluntary deductions?
VOLUNTARY DEDUCTIONS are when employees choose to have these deducted from their pay: e.g. pensions, trade union subscriptions and charitable donations
What are fringe benefits?
FRINGE BENEFITS are additional payment in kind to an employee, such as pension contributions, company car or health insurance.
What is pay as you earn?
PAY AS YOU EARN (PAYE) is the system where Income Tax and National Insurance are deducted from employees’ gross pay and paid to the Government by employers.
