It refers to the sum of the annual compensation package of the employee, which includes incentives, basic salary, commission and all the financial and non-financial benefits. It helps in analysing that the employer must withhold income taxes and other necessary taxation. Here are some of the basic aspects which get included in Total Remuneration:
- Incentives
- Basic salary
- Bonuses
- Stock option
- Financial benefits
- Non-financial benefits
- Plans related to pension
In terms of HRM, there are two major types of Remuneration: Direct and indirect. The direct remuneration consists of and financial benefits of the employee and the indirect form includes all the non-financial benefits like child care assistance and insurance.
