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Offering a remuneration package is an excellent way for a company to attract new employees and minimise employee turnover. In this article, our solicitors outline everything you need to know about a remuneration package.
A recent study outlines that 69% of employees choose a job that offers a better remuneration package.
If you’re an employer or an employee who has any queries regarding a remuneration package, please call us on 020 3007 5500.
Remuneration meaning.
In short, remuneration is any form of compensation an individual receives in exchange for their work or services. This compensation can come in the form of:
- Salary
- Benefits
- Other company perks
Remuneration varies between organisations and job roles. Remuneration offered by an employer usually suits the type of role to ensure the position is attractive in the job market.
Common incentives.
Remuneration can cover a variety of incentives on top of an employee’s salary. Some common examples of remuneration incentives include:
- Company shares
- Performance-related pay and bonuses
- Accommodation
- Enhanced pension provision
- Enhanced annual leave entitlement
- Subsidised transport costs
- A company mobile phone
- Wellness programmes. For example, gym membership.
What is a remuneration package?
A remuneration package is a complete bundle of company benefits and perks offered or given to an employee.
Example:
Michael lives 40 miles away from his office. Therefore his company offered him a remuneration package, which gives him a competitive salary, company car, monthly fuel allowance and remote working on Fridays.
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Do you pay tax on remuneration?
In short, yes.
In the UK, if you are an employee or are incorporated as a part of a Limited Company you are required by law to pay income tax on all employment earnings. Therefore, you are obliged to pay income tax on any remuneration that you receive.
Please note, that for income tax purposes, any company benefit is treated as earnings and taxed accordingly. Usually, the cash equivalent of the company benefit is determined to help calculate how much income tax an employee is due to pay.
Remember...
How can Britton and Time Solicitors help?
For an employer, offering a remuneration package is a great way to attract new talent and ensure low staff turnover. However, when considering a remuneration package, it’s essential to use an employment solicitor. An employment solicitor will ensure that both parties understand and are happy with the terms and conditions of the contract to reduce the risk of future breaches of contract and employment tribunal claims.
When it comes to producing an employment contract, our employment solicitors can help both employers and employees with the following:
- Drafting an employment contract. Our solicitors will ensure that the employment contract is in line with your intentions and legally compliant. Furthermore, in any circumstances where an employee is unhappy with the terms and conditions of an employment contract, our solicitors can negotiate on your behalf.
- Reviewing an employment contract. If you’re an employee and you’re not happy with the terms and conditions of your contract. Our solicitors can provide advice and negotiate any changes on your behalf.
- Resolving a dispute. Suppose any disputes arise over an employment contract. In that case, our employment solicitors will inform you of your legal standpoint, advise you on your options and help resolve the dispute amicably. Our employment solicitors have experience resolving disputes through alternative dispute resolution (ADR) and the employment tribunal.
For more information, please visit our employment law page or contact our employment solicitors directly on 020 3007 5500.
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