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Remuneration Packages: Definition & Examples

Instructor: Jessica Mercado

I completed my BA in Criminal Justice in 2015. Currently working on my MS in Homeland Security Management.

In this lesson, you will explore the definition of remuneration packages and the various types of remuneration packages in relation to employment. In addition, you will learn about remuneration packages you can receive in civil lawsuits.

Where is My Pay?

You are a salesman at a car company. You receive your pay based off of the amount of cars you sell. You were told before you began, that each month, you would receive a compensation pay for each car you sold, in the amount of $400. You receive your first paycheck and notice that it seems to be short. You realize that the company was only paying you $300 per car, rather than the $400 that was promised. You bring the issue up to the attention of the company, but they claim they paid you correctly.

What kind of remuneration package was violated here and what can you do to make sure you get the correct pay? Let's continue with the lesson to find out.

What Does Remuneration Packages Actually Mean?

Remuneration packages generally describes as a reward for employment. This can be expressed in: pay/salary/wage, allowances, benefits, bonuses, cash incentives, and non-cash incentives. This can not only be used in terms of employment payment, but also victim payment in a civil case in relation to unpaid wages.

Types of Remuneration Packages in Employment Settings.

In order to understand the various types of remuneration packages, they are broken into two categories: direct and indirect compensation. Direct compensation covers payment methods from salaries to bonuses, while indirect compensation covers benefits and incentives.

Direct Compensation

  • Salary- A set sum of pay for a period of one year. Typically payments occur twice a month. It is most often used for licensed or professional employees. An example of salary would be, Sally receives a salary of $30,000 a year.
  • Hourly- Currency amount, such as dollar or euro, that is payed per hour. Typically a payment method for skilled and unskilled laborers. An example would be, Kurt gets paid at a rate of $10.00 per hour.
  • Commission- A payment method that is based on the work performance of employee. This type of payment is to ensure minimum production level is met. An example of commission would be, John receives compensation for every piece of jewelry he sells.
  • Bonuses- A payment that is given in addition to already expected pay. This type of pay is used to encourage employees to increase their performance levels. An example of bonuses would be, A store manager promised his employees a bonus of $500 at the end of month if the month's sales goals are met.

Indirect Compensation

  • Benefits- Payment typically paid in the form of: insurance, retirement, transportation, vacation, paid time off, and incentives. An example of benefits would be, a 401k retirement plan.
  • Equity Based Programs- This type of method connects the employee to the company through ownership. It is not used very often in small businesses. An example would be, driving a car that is owned by the company.

Going back to the original example, what type of remuneration was violated by the car company you work for? Based on what was covered, and the fact that you were to receive compensation of $400 per car sold, the company violated your commission pay.

You decide to file a lawsuit against the company because they were uncooperative and did not want to pay you what was promised. Find out what kind of remuneration package you can receive being a victim in a civil crime, in relation to unpaid wages.

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