In accordance with the provisions of Article 135 of the Labor Code of the Russian Federation, the employee’s wages are established by the employment contract in accordance with those in force for the given employer wage systems.
Accordingly, each employer must have its own system of remuneration for employees. The basis for its development will be the provisions of the Labor Code and other norms of current legislation. What does current legislation mean by the remuneration system and what are the requirements for it? As is clear from the name itself, the remuneration system means a certain set of conditions for an employee to receive wages - remuneration for his work.
In accordance with Article 129 of the Labor Code of the Russian Federation, wages (employee remuneration) are remuneration for work, which depends on:
- employee qualifications,
- complexity, quantity, quality and conditions of the work performed.
- compensation payments*,
- incentive payments (additional payments and bonuses of an incentive nature, bonuses, other incentive payments).
In accordance with the provisions of Article 135 of the Labor Code of the Russian Federation, the remuneration system, including:
- Dimensions:
- tariff rates,
- official salaries,
- additional payments and allowances of a compensatory nature, including for work in conditions deviating from normal,
- Systems:
- additional payments and bonuses of an incentive nature,
- bonuses,
All these documents must be drawn up in accordance with labor legislation and other regulatory legal acts containing labor law norms.
When choosing and developing in-house employee remuneration systems, various systems can be used:
- Tariff systems of remuneration.
- Tariff-free wage systems.
- Mixed remuneration systems.
This article is intended to help novice specialists understand the types and forms of remuneration systems when analyzing (and, if necessary, developing) the company’s internal remuneration systems.
Tariff system of remuneration
Many companies use tariff systems for remunerating employees. As follows from the provisions of Article 143 of the Labor Code of the Russian Federation, tariff wage systems are wage systems based on a tariff system of differentiation of wages for workers of different categories. At the same time, it is necessary to take into account that only tariff systems of remuneration are directly provided for by the Labor Code.Other types of systems are not established by the Labor Code, however, in accordance with the provisions of Article 135 of the Labor Code of the Russian Federation, the employer has the right to install at his enterprise any remuneration systems that must meet one single condition:
- they must not contradict the requirements of the Labor Code of the Russian Federation and other documents containing labor law norms.
- tariff rates,
- salaries (official salaries),
- tariff schedule,
- tariff coefficients.
Tariff category is a value that reflects the complexity of work and the level of qualifications of the worker. A qualification category is a value that reflects the level of professional training of an employee. Tariffication of work is the assignment of types of labor to tariff categories or qualification categories depending on the complexity of the work. The complexity of the work performed is determined based on their pricing.
Tariffication of work and assignment of tariff categories to employees are carried out taking into account the unified tariff and qualification directory of works and professions of workers, the unified qualification directory of positions of managers, specialists and employees, or taking into account professional standards.
These reference books and the procedure for their use are approved in accordance with the Decree of the Government of the Russian Federation of October 31, 2002. No. 787 “On the procedure for approving the Unified Tariff and Qualification Directory of Work and Professions of Workers, the Unified Qualification Directory of Positions of Managers, Specialists and Employees.”
Tariff systems of remuneration are established by collective agreements, agreements, local regulations in accordance with labor legislation and other regulatory legal acts containing labor law standards.
Tariff systems of remuneration are established taking into account:
- unified tariff and qualification directory of works and professions of workers,
- a unified qualification reference book for positions of managers, specialists and employees or professional standards,
- state guarantees for wages.
At the same time, the “above-tariff part” of wages (allowances, additional payments and other payments) may be different for different employees, including depending on:
- qualifications,
- difficulty of work,
- quantity and quality of labor.
At the same time, the salary of each employee depends on his qualifications, the complexity of the work performed, the quantity and quality of labor expended (Article 132 of the Labor Code of the Russian Federation).
At the same time, any discrimination in establishing wage conditions is prohibited.
*That is, establishing the official salary for a vacant position from the minimum to the maximum.
The main forms of the tariff system of remuneration are time-based and piece-rate.
The difference between time-based and piece-rate wages is that with time-based wages, payment depends on the amount of time worked, and with piece-rate wages, on the quantity of:
- units of production produced,
- completed operations.
- Time-based form of remuneration.
This form of remuneration is used when the employee’s work is not subject to rationing or it is too difficult to organize records of completed operations.
Typically, a time-based wage system is used to pay administrative and managerial personnel, as well as employees of auxiliary production and service facilities.
In addition, this form of payment is used when paying part-time workers.
At simple time-based form of remuneration, wages are paid for a certain amount of time worked and do not depend on the number of operations performed.
The calculation is based on the tariff rate or salary and the amount of time worked.
The amount of wages is determined as the product of the tariff rate (official salary) by the amount of time actually worked.
If an employee does not fully work a month, the employee will be paid only for the time actually worked.
If a company uses an hourly or daily wage system, then the employee’s salary will be determined based on the hourly (daily) rate multiplied by the number of hours or days actually worked.
At time-bonus In the form of remuneration, when calculating wages, not only the time worked is taken into account, but also the quantity/quality of work, based on which the employee is awarded a bonus.
The amount of the bonus can be set as a percentage of the salary (tariff rate) of the employee, in accordance with the current rules in the company:
- regulations on bonuses,
- collective agreement,
- by order of the head of the company.
- Piecework form of remuneration.
The piecework form of remuneration encourages employees to increase productivity and quality of work performed.
The amount of wages is determined on the basis of piece rates provided for the implementation of each unit of production or operation.
The piecework form of remuneration is used in organizations that have the ability to clearly record the quantity and quality of products produced and operations performed.
The piecework form of remuneration, in turn, is divided, depending on the chosen method of wage calculation, into the following types:
- Direct piecework wages.
- Piece-bonus wages.
- Piece-progressive wages.
- Indirect piecework wages.
- Accordal remuneration.
Using straight piecework form of remuneration, employees’ wages directly depend on the number of units manufactured and operations performed.
Salaries are calculated based on piece rates. The number of units manufactured (operations performed) is multiplied by the corresponding piece rates.
At piecework-bonus wages, employee salaries consist of two parts:
- The first part is calculated based on output and piece rates.
- The second part consists of a bonus calculated as a percentage of the amount of piecework earnings.
Using piecework-progressive forms of remuneration, employee salaries are calculated as follows:
- For manufacturing products/performing operations within the norms, wages are calculated at fixed rates.
- For manufacturing products/performing operations in excess of established standards, wages are calculated at increased (progressive) rates.
Usage indirect piecework Forms of remuneration are usually carried out when calculating wages with employees of auxiliary production and service facilities.
The salary of such employees depends on the output of the main working personnel and is paid at indirect piece rates for the number of products/operations performed by the company.
Also, the earnings of service workers can be set as a percentage of the wages of the main workers.
At chord wages and salaries of employees do not depend on the volume of units of production/operations performed, but are set for a set of works.
At the same time, depending on how the production process is organized at the enterprise, piecework wages can be individual piecework and collective piecework.
In the case of individual piecework wages, an employee’s salary is calculated based on the quantity of products he produces and its quality.
The amount of earnings is calculated based on piece rates.
With collective piecework wages, employees' salaries are determined in total, taking into account the actual products produced and work performed, and their piecework rates.
The salary of each individual employee is calculated based on the volume of products produced by the entire department (team) and the quantity (quality) of his labor in the total volume of work performed.
Thus, the salary of one employee with collective piecework wages depends on the total output.
Tariff-free wage system
The non-tariff wage system is characterized by a close connection between the employee’s salary level and the wage fund, determined based on the specific results of the work of the workforce.Each employee is assigned a constant qualification level coefficient.
At the same time, when calculating earnings, the labor participation coefficient (LFC) of a specific employee in the company’s performance results is taken into account.
When using a tariff-free system, employees are not given a fixed salary or tariff rate.
In this case:
- amounts of salaries, bonuses, other incentive payments,
- their ratio between individual categories of employees,
An employee’s earnings under such a remuneration system depend on the final results of the work of the organization, structural unit, as well as on the amount of money allocated by the company to replenish the wage fund.
Accordingly, the salary of each employee is calculated as a share of the total wage fund.
A tariff-free remuneration system is used in situations where it is possible to organize accounting of an employee’s work results.
Such a system stimulates the general interest of the team in the results of work and increases the level of responsibility of each employee for their achievement.
Accordingly, the tariff-free system cannot be used by large companies.
Moreover, if the activities of companies are related to the production of products and, accordingly, the use of a tariff-free system may infringe on the interests of employees in terms of the guarantees provided for by the Labor Code.
In such cases, companies use mixed remuneration systems, with elements of tariff and non-tariff systems. We will talk about them below.
Mixed remuneration system
The mixed wage system is interesting because it combines both the features of a tariff system and the features of a non-tariff wage system.A system of this type can be used, for example, in a budget organization that has the right to carry out entrepreneurial activities in accordance with the constituent documents.
Mixed remuneration systems include:
- system of "floating" salaries,
- commission form of remuneration,
- dealer mechanism.
Such a system can be used to pay administrative and managerial personnel and specialists.
Accordingly, the size of the salary depends on the quality of the employee’s performance of his job duties.
Application commission form of remuneration is now quite common.
This system pays for the work of many sales department specialists.
An employee’s salary for performing his job duties is determined in this case as a fixed percentage of income from the sale of goods, products, works and services.
At the same time, the choice of a specific mechanism for calculating wages, when using a commission form of remuneration, is regulated exclusively by the company’s internal regulations and depends on the specifics of the organization’s activities.
Many trading companies, for example, set commissions as a fixed percentage of the proceeds from the sale of goods.
In addition, the company may establish a differentiated interest rate, depending on the type of goods sold and their economic return.
Also, often, instead of percentages, fixed prices are used for the sale of each product unit/batch of goods.
In large organizations, quite often a percentage scale is established for the sales department, which is applied to the so-called “basic tariff” (salary) depending on sales volumes (if the sales quota is not met, then the % decreases, and if it is met or exceeded, it increases).
In conclusion, let's talk about dealer mechanism.
This remuneration system is based on the fact that a company employee purchases company goods at his own expense in order to sell them independently.
Accordingly, the employee’s earnings in this case are the difference between the price at which the employee purchased the goods and the price at which he sold them to customers.
Don’t know what remuneration system to establish so that employees work for results and use their working time rationally? We will tell you in the article what types of remuneration exist and how to apply them.
From the article you will learn:
Remuneration systems: types and characteristics
The remuneration system and its types in 2017 establish a certain procedure for the calculation and payment of wages in the company. The employer independently determines the forms, types and systems wages In the organisation. Moreover, the remuneration system, its types and characteristics can be either uniform throughout the company (the same for all employees) or different (for different positions, structural units, the employer can establish different types of remuneration).
The types, forms and systems of remuneration in 2017 are briefly summarized in Table 1.
Download documents on the topic:
Table 1. Types and forms of remuneration in 2017
Important! Types and forms and systems of remuneration are established by collective agreements, agreements, local regulations in accordance with labor legislation and other regulatory legal acts containing labor law standards. Local regulations establishing wage systems are adopted by the employer taking into account the opinion of the representative body of employees.
This means that each company must have a local regulatory act regulating these issues. The absence of such a document is a violation. This may be a separate Regulation. A sample of the Remuneration Regulations can be downloaded .
Forms of payment for work
Let's consider the forms of remuneration:
- monetary – types of remuneration and forms of payment must have a monetary value. Cash wages are the main form of remuneration for an employee.
Important! Wages must be paid to employees in the currency of the Russian Federation (in rubles); payment of wages in foreign currency is not allowed.
- non-monetary - in this case, instead of money, the employee can receive, for example, a product that the company produces. The non-monetary part cannot exceed 20% of the employee’s total salary.
Question from practice
How to set up a wage system?
The answer was prepared jointly with the editors
Nina Kovyazina answers
Deputy Director of the Department of Medical Education and Personnel Policy in Healthcare of the Russian Ministry of Health
An organization can simultaneously apply several remuneration systems. For example, for some employees - piecework, and for others - time-based. There is no prohibition on the establishment of several remuneration systems in the Labor Code of the Russian Federation.
Ask your question to the experts
Pay for work systems
To remunerate employees, the employer can establish the following types of remuneration system:
- tariff– these are types of remuneration systems that are based on a tariff system of differentiation of wages for different categories of workers;
- tariff-free– these are types of remuneration systems in which it is not known in advance how much money the employee will receive, since he is not given a specific salary, and earnings depend on the final results of the work of the company as a whole or a separate structural unit, team, and so on;
- mixed– these are types of remuneration systems that contain features of a tariff and non-tariff system.
Remuneration system: forms and types of remuneration
The main remuneration systems used by the employer are as follows:
- time-based– wages are paid for actual time worked;
- piecework– wages are paid for work actually performed.
Table 2 shows the types of remuneration systems.
Table 2. Types of remuneration system
|
Remuneration system, types |
Description |
Based on what document is salary calculated? |
|
Simple time-based |
The employee is given an official salary or hourly rate, the salary is paid for the time actually worked |
|
|
Time-based bonus |
In addition to the salary for the time actually worked, the employee bonus is paid |
As with a simple time-based + Regulations on bonuses (a sample employment contract with bonuses is shown in Figure 1) |
|
Direct piecework |
The amount of work performed (product units) is multiplied by the piece rate established by the company |
|
|
Piece-progressive |
The worker is given a standard, which is paid at the basic rate; when work is performed above the standard, the cost of the piece rate increases |
As with direct piecework |
|
Piece-bonus |
In addition to the salary at piece rates for the work actually performed, the employee is additionally paid a bonus |
As with direct piecework + Regulations on bonuses |
|
Indirect piecework |
An employee’s salary depends on the results of the work of other employees whom he helps in performing work (for example, servicing the machine at which the employees are working) |
|
Practical situation
How to choose wages and write them down in the contract. Five formulations for different situations
The answer was prepared jointly with the editors of the magazine "
Andrey BEREZHNOV answers,
K. Yu. Sc., lawyer at Balashova Legal Consultants, associate professor of the Department of Labor Law, Faculty of Law, Moscow State University named after M.V. Lomonosov (Moscow)
When an employee produces products according to a standard and its quality and quantity can be assessed, this is used as the basis for remuneration. Piece payment encourages employees to perform their work efficiently and on time, and not to depend on the results of the team. Piece payment is being introduced in production areas.
What determines the amount of remuneration? The employer multiplies the quantity of quality products produced by an employee over a certain period by the cost of a unit of production. This ultimately determines the amount of wages. The more products an employee creates, the higher the salary...
Table 3. Types of remuneration
|
Description |
|
|
Commission |
The amount of an employee's salary depends on the results of his activities. For example, a sales department employee is paid a salary of 10% of the total cost of goods sold by him for the month (a sample employment order with a commission system can be downloaded). The most common option is when an employee is given a salary of a certain amount and, in addition, a percentage of the revenue. |
|
Chord |
Salaries are paid for the final work (a set of works), and not for a separately completed task. |
In this article, we examined the types, forms and systems of remuneration that can be established in a company. Determining the type of remuneration is the right of the employer. And the company’s task is to establish a system that will bring maximum effect to the organization, but will not limit the rights of employees and worsen their situation.
The Labor Code of the Russian Federation in Article 129 synonymizes the concepts of “remuneration” and “wages” and defines them as a set of three elements:
However, it is worth considering that not all components are required to be paid to the employee.
Monthly earnings cannot be lower than the level established by the Government, and includes allowances for the complexity of the work and special conditions (work on weekends, etc.). But incentives remain at the discretion of the employer and are awarded only if the employee has done his job well, in the opinion of the employer.
As a result, it turns out that the concept of remuneration is broader than the concept of wages, because is a list of all the elements from which the wages of a particular employee are subsequently collected.
Each employer decides independently how to pay wages, taking into account the minimum provisions of the Labor Code.
Art. Art. 23 and 132 of the Labor Code establish the impossibility of discrimination against workers with equal qualifications, output and quality of work. This means that you cannot set different pay for the same work.
Accordingly, the employer must apply uniform parameters when setting wages. A variation of such parameters represents a remuneration system. It must be based on legal norms and not worsen the employee’s position in comparison with them.
Forms of remuneration
Do not confuse the concepts of “payment system” and “form of payment” - they are not identical, although in the literature they replace each other.
A system is a set of rules for remuneration. Form is one of these rules.
Art. 131 of the Labor Code of the Russian Federation establishes two forms in which labor can be paid:
- Cash - made in rubles.
- Non-monetary - natural - paid in any material or immaterial form not prohibited by law. The size of the natural part is no more than 15% of the person’s entire salary.
Pay systems
Remuneration system- this is a documented “instruction” on how to calculate an employee’s salary for a specific period worked, containing a complete list of parameters for the accrual and deduction of funds.
The employer, depending on the nature of the business activity, can use wages to increase output and/or reduce costs. To do this, you need to choose rational remuneration systems.
There are 3 main systems, divided into many types. For clarity, they are all presented in the table below.
Tariff system of remuneration
Tariff SOT is the most common, used by both government agencies and commercial organizations. It is based on the ranking of employee salaries depending on their qualifications, work experience, acquired skills, output, conditions and nature of work. In government agencies, the Unified Tariff Schedule is used. In commercial ones - documents similar to it, approved taking into account the opinion of the trade union body.
Tariffing is regulated by law for many industries. For example, for employees in the education sector, an individual tariff SOT has been established in accordance with Government Decree No. 583 dated 05.08.2008.
There are two types of tariff systems: piecework and time-based.
Time-based form of remuneration
Time-based SOT is used at those enterprises where there is no need or opportunity to normalize production. Employees' job functions do not include the production of goods or services, so it is optimal to pay wages for time, and not for the amount of work. Almost all administrative and economic personnel “sit” on this COT. Payment will be made based on the employee’s qualifications and actual time worked in the accounting period.
Peculiarities of salary calculation for different types of time-based wages
When idle Time-based SOT is paid for the time worked in the period. Periods can be recognized as: hours, days, months and variations of these periods.
At premium– a bonus for the quality of work is added to the salary for the time, calculated as a percentage of the salary at the rate. The bonus may be one-time or applied on an ongoing basis.
With salary– the employee has the right to count on a monthly salary in the amount as established in the employment contract. Upon achieving a certain qualification (determined subjectively by the employer), the salary may be increased.
Piece-rate wage system
Piece work is used by organizations that provide services, perform work, or produce goods. Their profit directly depends on the speed of their employees’ work, so it is profitable to pay not per unit of time, but per unit of output. The payment formula is as follows: as much as you did, you received as much. The quantity of the product is multiplied by the unit price (piece rate). Such SOT encourages employees to constantly improve their output and quality of work. The second indicator is no less important, because Salaries are calculated based on the results of the period strictly after analyzing the work. Those. if Petrov produces 200 parts, of which 100 are unusable, only 100 will be paid for.
The basis for calculating wages will be documents confirming that employees have fulfilled their personal production plan. In order to facilitate calculations and minimize errors, it is necessary to carefully consider the system for recording employee performance.
How labor is paid for different types of piecework wages
When straight- payment is made for the number of output units at the same price for each.
With progressive– the piece rate increases for each unit above the plan.
At premium– to the salary calculated according to the direct piece-rate system, a bonus is added for fulfilling the plan, compressing deadlines, absence of defects, economy of material consumption, etc.
With indirect the work of support staff is paid, the amount of payment is set as a percentage of the salary of the main employee.
With chord wages are awarded for the comprehensive implementation of the plan in general; the unit of output in this case does not play a role. There are:
- individual piecework SOT - salary for achieving one’s own indicators;
- collective - the salary of one person depends on the successful achievement of goals by the entire team. This system develops team spirit in the team.
Tariff-free wage system
The tariff-free SOP is similar to the option system in startups. There is a payroll and employees. Let’s assume 100 thousand rubles and 10 people. The employer establishes that:
- The payroll can be increased if the company’s profits rise,
- The share of each employee’s salary is 10%.
The share can rank employees by the amount of participation in work or be the same for everyone.
In the employment contract, of course, they will write down 10 thousand rubles - salary per month. It is impossible to mention % according to the Labor Code, and it is not very profitable for the company.
After the announcement of working conditions, there is no need to establish additional incentives; employees themselves will strive to increase the company’s income. This model is applicable to small, start-up companies that will not go public, but want to interest employees without having money for bonuses.
Mixed remuneration system
A mixed SOT combines tariff and non-tariff SOT - the employee has a certain salary, but in this case it directly depends on the success of his work: on the number of sales, on the quality of developments, on time worked, etc.
The more output, the higher the salary. And vice versa. The difference from the tariff is that the entire salary is reduced down to the minimum wage.
How are salaries calculated for different types of mixed labor protection?
The floating salary system involves recalculating salaries on a monthly basis based on the results of work for the previous period.
In commission calculations, an employee can count on a percentage of the company’s profit in general, or from each unit of output. This COT is very often used in insurance companies.
Remuneration in a dealer network is very close to payment under a civil contract, but it also occurs in labor law. An employee is obliged to sell a certain amount of company goods, which he purchases at his own expense. The difference between the purchase price and the selling price to third parties is the person’s wages.
The legislation provides for certain remuneration systems. Of these, each organization must choose exactly the one that suits it to the maximum extent. How to make a choice and how to reflect wages in local documents, read the article.
From this article you will learn
Each organization has one or more remuneration systems and prescribes these rules in a local act or collective agreement. This requirement is established by Article 135 of the Labor Code of the Russian Federation. If a company does not have a collective agreement, the most appropriate solution is to develop a separate local act. For example, the Regulations on wages, where all the main issues related to wages are stated. Find out about.
Basic remuneration systems
Despite the fact that the Labor Code of the Russian Federation no longer names others, employee remuneration systems are not limited to just these two main types. Remuneration in Russia also allows for other types. But the difficulty of their use lies in the fact that the Labor Code of the Russian Federation does not directly regulate these types. However, this does not mean that other systems cannot be used. The expert will tell you more information about existing remuneration systems in Russia: "".
Let's look at the types that are named in the Labor Code of the Russian Federation.
Time-based wage system
This is the most widely applicable form. As the name suggests, in this case, the time worked by each employee is taken into account for calculating wages. Based on this indicator, a specific calculation of the monthly payment is made.
The elements of the time system are:
- Salary. This is a fixed payment, which is provided for a month of work.
- Tariff rate. It most often happens hourly or daily. What makes her salary different is that it is a fixed payout for an hour or a day of work, as opposed to a salary, which is a fixed payout per month.
The definition of both salary and tariff rate is contained in the article.
In practice, in local acts of companies or employment contracts one comes across such an expression as “salary per hour”. It should be noted that such a term cannot be used in the work. If you want to provide for hourly wages in your employment contract, call it .
The time-based wage system is applicable everywhere. It is used in situations where employees do not produce units of products or do not provide a certain number of services. This system is ideal for:
- administrative staff;
- office workers;
- doctors, teachers and other categories of employees.
Nina Kovyazina answers,
Deputy Director of the Department of Medical Education and Personnel Policy in Healthcare of the Russian Ministry of Health
Application cases
As a rule, they apply to employees:
- who do not produce material assets (for example, an accountant, a secretary);
- whose output does not depend on personal skills (for example, an employee working on an assembly line).
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Time-based bonus systems for remuneration of workers
Above we talked about a simple time-based system. It does not imply additional incentive or incentive payments. In addition to the fixed part, organizations provide a variable component. Workers may be paid bonuses and other incentive payments.
So, if in addition to the salary or tariff rate the payment of bonuses is provided, this will take place.
Example of the wording of an employment contract:
Important! Each organization sets the procedure and conditions for paying bonuses independently. This order must be enshrined in a local act. In practice, companies develop a separate or include it in .
The issue of awarding bonuses often causes difficulties for employers. Therefore, we recommend that you familiarize yourself with the material: .
Piece-rate wage system
The second most common option is the establishment of a piecework wage system. It is used in situations where an organization can count the number of products manufactured by an employee or services provided. In practice, such a system is used in production or in the provision of services, when a quantitative indicator can be assessed.
When establishing such payment, the organization will need:
- Enter piece rates for each type of product manufactured or service provided.
- Keep records of production. To do this, you will need to develop a separate document or use existing ones, for example, a waybill, work order, and so on.
Accordingly, the salary will be calculated as follows. It is necessary to multiply the number of units of manufactured products (rendered services) by the established piece rates. This will determine the monthly salary. You will find a detailed analysis in the article:
Important! The introduction of a piece-rate wage system does not relieve the employer from fulfilling the obligations established by the Labor Code of the Russian Federation. Therefore, just like with time-based work, wages must be paid. And the monthly salary, subject to full working hours, must be no less than the established minimum wage.
Therefore, if an employee works full-time, the employer must set production standards for him so that if they are met, the monthly salary will not be less than the minimum wage. Let us recall that the obligation to provide employees with work rests with the employer (Article 22 of the Labor Code of the Russian Federation). Therefore, it is the company that must provide the employee with the scope of work determined by the employment contract.
The piecework system also has its variations:
A simple piece rate is an option when, in addition to payment at piece rates, no additional payments are made to the employee. All other subspecies provide their own nuances.
What are the main forms of remuneration in the world? What is this anyway? How is earnings calculated in this or that case? All this is extremely important for both employees and employers. After all, understanding the situation as a whole will help you understand which payment system your boss should choose to receive benefits. And subordinates will be able to figure out exactly what kind of earnings they can expect in a given case. This way no one will be deceived.
Types and forms
Salary is a point that requires special attention. Now there are various forms and types of it. They differ in the allocation of funds to employees. This means you have to choose the best option. The main forms of remuneration are the following systems:
- time-based;
- piecework.
But these types already have specific subsystems. They very accurately determine the format for assigning earnings in a particular case. So it's worth paying attention to.
By time
The greatest demand among both employees and employers is a time-based wage system. It allows you to reward the employee for his work as accurately as possible. It is used where it is impossible to evaluate the contribution of a subordinate and the volume of work performed. This system has many varieties. Thus, the main forms of time-based wages are:
- simple;
- tariff-free;
- premium.
Sometimes the option “by agreement, depending on the time worked” occurs. But with permanent employment, such a system does not exist. The time-based form is the formation of earnings solely for the time spent at the workplace. The volume and quality of products is not taken into account. Ideal for most employers and employees. Typically, a system of tariff hourly rates is used when calculating earnings. The higher it is, the higher the salary at the end of the month for the time worked.
Simple time system
And now a little specifics. After all, it is not yet clear how the above two subtypes differ from each other. And which option is more suitable for most corporations, both from the employer’s and employee’s perspectives.
Basic forms of remuneration include a simple time-based system. When using it, earnings will be calculated only taking into account the time spent at the workplace. Most often it reflects the “net” salary without allowances and bonuses. 
Hourly rates are used here. It is formed in order to determine the “cost” of an hour of work for a specific employee. May vary depending on position. Suitable for most companies, especially those hiring students. Satisfied with many employees. As they put it, “you can just do your allotted work time and go home.” You don’t have to worry about the quality and volume of products (provision of services). All this does not affect your earnings in any way.
Additional incentive
The main forms (systems) of remuneration are, as we have already found out, time-based, non-tariff and piece-rate calculation schemes. But it’s not yet clear by what principles your salary will be calculated. There is a premium subtype in the time-based system. Many employees are interested in it, but employers are not particularly interested in it.
We are talking about a time-based bonus system. It implies additional incentives for employees in order to improve the quality of the product. In this case, the calculation is based on the time worked. But additional bonuses are paid. They are awarded for the quality of goods and services. A great way to increase it without increasing discontent among employees. But this kind of system is not used very often. Although it does exist. What else do the main types (forms) of remuneration include? What features do they have? All this is extremely important to understand in order not to be deceived in certain cases.
Tariff rate
It is necessary to understand such a moment as the tariff rate. It occurs not only with time-based wages. So this is the main component of earnings in most cases.
The tariff rate refers to the price per unit of the system of valued labor. That is, if you pay by time, it will be an hour. You can also enter a tariff per unit of output. Usually, using this component, it is easy to calculate exactly how much each employee should receive. 
The tariff rate is the main point in all payment systems, with the exception of the non-tariff form. Otherwise, it takes place. To some extent, you can call a tariff a price.
Piece system
The main forms of remuneration are piecework, time-based and non-tariff. We've already dealt with the second one. It is used in practice very often. What is a piecework system? How will it be paid for? Does it have any subsystems?
Piece-rate wages are the formation of an employee’s wages without taking into account the time worked. The amount of your monetary compensation depends only on the quality and quantity of goods produced and services provided. To some extent, a very good way to earn money. Most often used in all areas where it is possible to quantify the amount of work performed. It has many subsystems, namely:
- simple (similar to time-based);
- premium;
- indirect;
- progressive;
- chord
All these are the main forms of remuneration (in construction, a time-based system is often used, for example) for those who want to improve the quality of the work performed, and not the volume of it. True, the system has its shortcomings. Namely, direct assessment of work. Quality is not so easy to define and evaluate in monetary terms. Therefore, it is customary to use special prices (tariff) per unit of product, as well as for a certain quality (it will be considered according to an algorithm developed by the company). 
It's simple
You were asked: “Name the main forms of remuneration and their subsystems”? Fulfilling the request is much easier than understanding all the systems for calculating earnings in a given case. What should you do if at work you are told that simple piecework wages are used here?
Be prepared for the fact that payment will be made exclusively for the volume of goods produced (or for the number of services provided to clients). In this case, the time for completing the work is not limited. It doesn’t matter whether you completed the task in an hour or 5 hours - your earnings will not change if the same amount of products was produced.
To accurately calculate the monetary reward, you need to use unit prices. They are set by the enterprise in a fixed amount and act as an analogue of the tariff (with an hourly system). There is nothing difficult or incomprehensible yet. Work according to the principle “as much as you do, so much you get.”
Piece-bonus system
The next option is the premium form. It is used when you want to somehow stimulate employees to do more work with better quality. Why?
We know all the main forms of remuneration. But it is important to know the features of each system and subsystem. Only then can one distinguish the types of earnings in essence. With a piece-rate bonus, the employer sets a certain work plan, the so-called norm, for subordinates. It is charged at the normal rate. But for exceeding this, bonuses are paid. Cash rewards for quality performance of products are also possible. A great way to increase productivity and production quality. This is also a fairly common option, but it is not very respected by employers. If you manage to improve both the quality and quantity of goods and services produced, you will have to pay a lot. And employers are not particularly interested in big expenses. Especially if sales volume does not increase, but remains at the same level. 
Indirect piecework
But that is not all. In some cases, there is indirect piecework earnings. It is not in demand very often, but exists in practice. The forms of basic remuneration for workers of certain companies are already known. But the features of each subsystem are not completely clear. This needs to be corrected in order to fully understand the principles by which employers can calculate with you.
The indirect piecework system is intended for monetary remuneration of “auxiliary” employees who influence the volume and pace of work performed by the main personnel. Earnings are calculated on a simple piece-rate basis, but depend on how many products the “base” of the corporation produced. This option does not include any other features.
Chord system
The basic forms of remuneration at an enterprise are exactly the same as in any other organization. It all depends on what exactly the employer chooses. There is a lump sum system of earnings. It refers to the piecework form.
There are also some peculiarities here. The employer does not pay for a specific unit of production, but a certain volume of it. A standard is set that must be met. For it, according to the prices, you are paid earnings. In this case, not only the volume completed, but also the time spent is indicated to the employer.
In some ways a very good choice. After all, you yourself are able to control your working time. If you want, complete the quota in an hour; if you want, “stretch” it over the entire shift. It is your right. Typically, products completed beyond the norm are not paid for. This system does not encourage employees to increase production. 
Piece-progressive system
The main forms of remuneration are: time-based, non-tariff and piece-rate systems. The latter has a subsystem called "progressive". It is more suitable for enterprises than the chord one. Especially if you need to increase production without sacrificing quality.
The piece-progressive form converges with the chord form. Only with such a development of events, earnings are formed not only due to the fulfilled norm. It is usually paid at regular rates. But everything that you did above the norm established by the enterprise is additionally rewarded. But not with bonus payments.
As then? In this case, prices will be increased several times for the volume of products completed. In practice, double tariffs are most often encountered. It turns out that in order to increase earnings, an employee will strive to fulfill the established form with certain quality indicators, as well as do something additional for the company. A very interesting scheme, but not all employers are interested in it. Therefore, most often, with a piece-rate system, there is a simple option for calculating earnings. Or premium. Other schemes exist, but are not so often encountered in practice.
No tariffs
The main forms of remuneration are piecework, time-based and non-tariff systems. The last arrangement interests many. This happens quite often in practice. And it’s happening more and more often lately.
Tariff-free earnings, as the name suggests, do not imply any rates or prices. But how then can you calculate an employee’s earnings? Easy and simple - it is set in the form of a fixed salary, which the employee receives monthly. Regardless of the time worked or the products produced/services provided.
As a rule, the salary will depend on the employee’s position, as well as on the chosen profession. In some areas of activity the population earns more, in others less. So keep that in mind. Most often, in a non-tariff system, there are bonuses paid for certain achievements. This type of income is considered the most reliable and stable, but not always fair. Especially if you are constantly improving the quality and quantity of products produced/services provided, but do not receive bonuses for this. 
Results
The main forms and systems of remuneration are now known to us. Moreover, it is clear what features each option has. It is not so difficult to choose the most suitable option for calculating earnings.
It is recommended to use the hourly system if the qualitative and quantitative indicators of the goods produced are not important. Otherwise, piecework is suitable. The tariff-free system is also included in the main forms of remuneration. It is used most often when you don’t really want to develop tariff rates and it is impossible to estimate the volume of products produced (or if doing this is very problematic).
Which option should you choose? Each employer decides this for himself. But if you prefer tariff-free, try to introduce bonuses for certain personnel achievements. They will be a good incentive to improve the quality of work.
