Employee Compensation Lecture 6 PDF

Elements of employee compensation: Basic wage component Variable wage component Employee benefits Intangible rewards Basic wage forms: Standard period plan - remuneration for time worked − per month − per hour Piecework rate - a reward for the amount of work done...

Elements of employee compensation: Basic wage component Variable wage component Employee benefits Intangible rewards Basic wage forms: Standard period plan - remuneration for time worked − per month − per hour Piecework rate - a reward for the amount of work done. Share-based (commission-based) wage – based on the quantity sold or services rendered Wages for expected work results Supplementary wage forms: Premium – communicated to employees advance with the conditions, to motivate the performance. Rewards (bonuses) – ex post, for extraordinary performance, stabilisation and loyalty. They can be individual or collective. Merit pay – based on the evaluation of the results achieved, supervisor usually sets a % of the wage rate for next time period (1 year, 3 months…) Shares in the company's results - e.g. profit share. Employee stock ownership plan Additional payments Other payments Additional payments: Compulsory: for overtime work – compulsory, at least 25% of average earnings (unless overtime pay is a part of salary or compensatory time off is granted), or compensatory time off, for work on public holidays – at least the average earnings or compensatory time off, for work on Saturdays and Sundays – at least 10 % of average earnings (unless otherwise agreed), for work in a difficult environment – the types of pollutants that worsen the working environment are specified in Government Regulation - at least 10% for night work (22.00 - 6.00) – at least 10% of average earnings (unless otherwise agreed), optional (for transport, clothing, accommodation,...) Other payments: Thirteenth salary, holiday allowance, life anniversary allowance, work anniversary allowance, recruitment allowance, severance pay Employee benefit systems: we usually do not provide benefits for performance motivation but for satisfaction and loyalty to the company. Benefit systems can be: − the same benefit for everyone,  − reimbursement of receipts up to a certain amount, − provision of vouchers, − Cafeteria system The minimum wage: The minimum wage is the lowest permissible remuneration rate for work performed under an employment relationship or under agreements on work performed outside an employment relationship. It is set by the law. Thus, the wage, salary, or remuneration may not be lower than the minimum wage, which for these purposes does not include overtime pay, holiday pay, night work, work in difficult working conditions, and work on Saturdays and Sundays. 2025 – 20,800 CZK/month, 124.40 CZK/hour The guaranteed wage -the wage or salary to which the employee is entitled. In this sense, the guaranteed wage is the wage (salary) earned by the employee through work performance. However, this guaranteed wage may not fall below the level laid down by government regulation as the least permissible in certain cases. In the Government Decree, the rates of the lowest levels of guaranteed wages are graded into eight groups depending on the complexity, responsibility, and exertion of the work performed. The average wage: Czech Republic − In the 2nd quarter of 2024, the average gross monthly wage in is 45,854 CZK − Medián 38,529 CZK − Medián for men 41,540 CZK, for women 35,565 CZK Zlin region In the 2nd quarter of 2024, the average gross monthly wage is 40,898 CZK.