While working in a professional space, we are rewarded for the services we render to individuals, organizations, or corporations. There are many ways to reward an employee’s contribution. Salary and remuneration are two such ways through which employees can be rewarded. Although there remains a thick line of difference between salary and remuneration, it can sometimes pose itself as a confusing question. This article is going to tell you what is the difference between salary and remuneration.
To understand the difference, we need first to understand their basic definitions.
What is Salary?
Salary is an agreed upon money, signed by both the employer and employee, which the employee is supposed to receive at the agreed upon intervals, i.e., weekly, monthly, etc. Salaries are also sometimes referred to as wages. These can also be received at the termination of the working tenure if the job type is temporary or ad-hoc.
Salary is determined by the employer; usually, organizations and employers follow a uniform pattern of salary in which workers are paid according to their position, job responsibilities, and seniority in the organization. These salaries or wages are based on the minimum wages set up by the authorities for different services and sectors. If the salaries are below the minimum wage set up by the government, then the employee can file a complaint against the employer as it is considered a violation of his right. For more information, you should learn about the minimum wage range set up by the central or state authorities for your particular organization and the sector it belongs to.
What is Remuneration?
Remuneration is the entire payment that the employee receives instead of his services by the corporation or the organization. It includes the salary and all the privileges that the employee enjoys while being a part of the organization. It is also an agreed upon package wherein the employee and the employer are the signatories.
Difference between Salary and Remuneration
|It refers to the exact sum of money, payment in cash or cheque, or money transfer that you receive in lieu of the work that you have rendered to the organization.
|It refers to all the components of the compensation package that the employee receives in lieu of his services rendered to the organization.
|Salary is a part of remuneration.
|Remuneration refers to salary as well as all the privileges provided to the employee by the organization.
|Salary is fixed and agreed upon by the employee as well as the employer.
|In most cases, remuneration is not fixed, the nature of remuneration can be agreed upon previously, but the amount of remuneration can vary. For example, remuneration can vary depending upon commission earned by employees in some cases.
|Salary is provided to employees at all the echelons of the organization.
|In most of the organization, remuneration is enjoyed by employees at higher echelons of the organization.
That’s all you need to know about the two terms and the difference that lies between them. Be aware of your wages, salaries and remuneration offered, and you will be good to go!