Get to know further employee salary components on your business
Employees or employees in a company are certainly very important. Without employees or employees, a company certainly doesn’t go well. As a reciprocal for employee staff, a company then issues what is called a salary. To issue a salary, the company certainly must take into account the first salary component that must be paid.
Understanding of salary components
Salary is a reward that is the right to obtain every employee who works on a company. Salary is also a component that is obliged to be paid by the company as a form of reciprocal for the energy donated by employees to the company. The company must pay a salary in accordance with the agreement or employment contract that has been agreed upon.
In determining salary, each company cannot be separated from various rules in the law. The existing law regulates the salary component that must be paid to employees so that there is a balance for each party. While for the amount of salary value, it returns to the company while still referring to the regulating law.
The type of salary component paid according to law
In Indonesia, there have been laws that regulate the granting of salaries or wages from the company to their employees. The law from the Minister of Manpower of the Republic of Indonesia regulates the grouping of components described as wages and non-wages. More detailed, here are various components of salary that must be taken into account by the company to its employees.
The type of salary component paid according to law
In some countries there have been laws that regulate the granting of salaries or wages from the company to their employees. The law from the Minister of Manpower, the countries regulate the grouping of components described as wages and non-wages. More detailed, here are various components of salary that must be taken into account by the company to its employees.
1. Basic wages
The principal or commonly known as basic salary is a basic wage that has been determined according to the level of office or certain tasks. Every position in the company certainly reflects the position and responsibility that must be carried out. The higher the position or position of a person in a company, the greater the responsibility and competence needed.
The magnitude of the basic wage is worth no less than 75% of the total salary that will be received by an employee. To determine the magnitude of the wages or basic salary, the company can refer to the UMR value or regional minimum wage that has been governed by the government. Wages or basic salary are also influenced by the position and responsibility of an employee.
2. Fixed benefits
Fixed allowances are a component of salary whose payment is carried out regularly. Payment of this allowance is paid along with the principal wage, still has no connection with the presence or performance of an employee in the company. Some permanent benefits commonly obtained by an employee include wife benefits, child benefits, or health benefits.
Allowances can still be interpreted as benefits received by an employee when working in a particular company. The value of this fixed allowance will generally change if an employee experiences promotion, democracy decreases position, mutation, other conditions such as marriage. However, the value of this allowance remains and is not related to the presence of an employee.
3. Not fixed benefits
Just like fixed benefits, allowances do not remain a component that must be included in the payment of an employee’s salary. In giving this fixed allowance must also be directly given to the employee. Some companies usually pay this fixed allowance together with basic wages on the payday date according to the company’s rules.
Unlike fixed benefits, this remained allowance is related to the number of attendance, the performance of an employee, to the profit obtained by the company. These components can change in a certain period so that it is referred to as non-fixed benefits. Some companies also include daily dining allowances related to the presence of employees in the office.
4. overtime wages
Similar to allowances, overtime wages are also an additional component that must be paid by the company. Payment of this overtime wage component has a fixed amount every time an employee does overtime. However, the payment is not fixed, because it is not always an employee will do overtime in each month.
Overtime itself is interpreted as the completion of the work charged by an employee from the company outside of his work hours. The administration of this overtime wage has been regulated in the Labor Act. Related to the payment, the frequent wages of overtime are included in one income component received by an employee every month.
In addition to components that can increase the amount of salary received by an employee, the component in salary must also take into account some of the set pieces. This salary discount will reduce the nominal salary received by an employee. Some components that can reduce employee salaries include taxes, health insurance contributions, or other pieces as punishment.
Every employee who already has a mandatory salary to pay income tax charged to him. But in practice, payment of this income tax is carried out by the company so that employees only receive clean salary and proof of tax. This proof of tax cut is very important for reporting income and tax payments every year.
Management considerations in determining salary components
To determine the salary amount of an employee in a company is usually done by Finance staff or HRD. In determining the salary amount of an employee, a HRD worked with Finance staff by looking at the burden of the duties and responsibilities charged by the company to an employee. Giving salary must be in accordance with the duties and responsibilities of an employee.
Some other components that are usually included in the determination of salary are the achievements shown by an employee. So to appreciate the achievement achievements, the company will include additional bonuses entered into the employee’s salary component. The existence of a bonus can also trigger employees to improve its performance in the company.
Calculating salary components is very important, especially for you business attendants. By calculating the determination of salary magnitude in each employee in detail and in accordance with applicable laws in Indonesia, you can make your business performance and development better while forming a solid team on business.
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