Forms and systems of payment

When an employee does some work after the conclusion of a labor agreement, he does it not for free, but for a certain financial reward. The duty to pay it promptly and in full is prescribed to the employer by law.

The forms and systems of remuneration that are part of the employer's expenses include:

1. Salary, which is directly related to the participation of the employee in the work process.
2. Taxes and contributions related to the use of labor resources.
3. Payment for both holidays and holidays.
4. The costs that enterprises take voluntarily.

Types, forms and systems of remuneration of labor are formed under the influence of both market and non-market factors. The latter include regulation of salaries by the state, the influence of trade unions, their relationship with employers.

The market factors affecting the forms and systems of labor remuneration in the enterprise include:

• The utility of the employee for the employer (it is determined by the ratio between the real income that the particular employee brings and the costs that go to it);
• Demand for a specific type of labor;
• The ability to replace live labor with machinery;
• Fluctuations in prices for services, goods (their growth leads to an increase in payment, and a fall - on the contrary).

Specific forms and systems of labor remuneration are determined by the terms of the collective agreement. It also affects the adoption of local regulations. Collective agreements and agreements solve the following range of issues:

• Indexation of wages ;
• Determination of the form and system of labor remuneration;
• Terms, place of payment of wages and order;
• Type of settlement sheet;
• Rationing of labor ;
• Setting time to calculate the average salary;
• Increase and observance of guarantees provided by the state.

The individual contract concluded between the employee and the employer usually complements the norms accepted by the state, the collective and local. However, it can play a decisive role in cases where managers do not receive funding from the budget, and also if they have concluded a contract with a religious organization or an individual.

When calculating the salary, the worker's labor productivity is taken into account. On the basis of this indicator, two forms and systems of labor remuneration are distinguished:

1. Time, in which the main criterion for assessing work is the time spent at work, compliance with its norms.
2. Piece-rate payment, in which during the calculation of the patch, the amount of work done, the products or services that have been delivered are taken into account.

With the usual time-based payment, the amount of wages charged is directly dependent on the tariff rate, which is set for the unit of actually worked time.

The usual piece-rate payment is calculated even easier - the price accepted for the basis is multiplied by the number of goods that were produced. The quotation depends on the level of work, the rate of production or time.

In modern practice, there is a combination of these two forms.

If you pay time-premium, the size of the tariff rate and premium depends on the fulfillment of the plan for the production of a large number of high-quality products, the saving of materials and raw materials, the fulfillment of all the obligations listed in the contract.

When paying a piecework bonus, fixed earnings are supplemented with a bonus for performance, and all the more for overfulfilment of the norms established earlier, for the absence of marriage, material saving, and the acquisition of new skills.

With a lump-sum payment, wages are not charged for the unit of output produced, but for the whole range of works.

All existing methods of payment are established on the basis of labor legislation and other legal acts that contain labor law norms.