How to find the best remuneration systems?

The amount and components of remuneration for work are determined using the accepted remuneration system. However, it should be remembered that it is not possible to determine the remuneration lower than the minimum remuneration for work due to employees on the basis of generally applicable regulations.

Remuneration systems

Most often, we meet with three pay systems:

  • Time,
  • Piecework,
  • Commission

The employer may apply different remuneration systems to his employees.

Time system

In the case of a time system, the amount of remuneration depends on the amount of time worked in a given accounting period.

In this system, the rates of remuneration are set in relation to the number of time units, which are:

  • Hour
  • Day
  • Week
  • Month

In the time system, work efficiency has no effect on the number of rates.

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The amount of remuneration rates depends on the type of work performed and the employee’s qualifications

Hourly and day rates are most often applied to employees employed in worker positions. Their remuneration is determined by multiplying the rate per hour or day by the number worked in a given accounting period.

The monthly time system is most often used for administrative and office employees. Employees receive a fixed remuneration at the end of each month of employment, as indicated in the employment contract.

It is widely believed that the time system is considered low motivating. It is not dependent on the results of the work done. The time system is often supported by bonuses and rewards that are to motivate employees to work more efficiently.