Each employer can independently decide which pay system will be used in his company. All varieties of such systems have certain positive and negative parameters. Widespread is the salary system used in various organizations. It refers to the types of time-based payments, but it involves the strict appointment of a specific specialist a certain fixed salary. Such a system has several advantages, but it is not without drawbacks.
System concept
Often, employers think about what it is - a pay system. It is represented by a certain method of calculating salaries for employees. It is a subspecies of time payment. In another way, it is called a fixed salary.
Often companies use a payroll system. What kind of system is this? It lies in the fact that a particular employee has a fixed salary, which does not change over time. It does not depend on the number of working days in a month, but this applies only to salary excluding bonuses. Therefore, in February, where there are only 20 working days, the salary will be the same as in March.
An exception would be the situation when the employee does not work all the working days, but leaves on sick leave or takes out leave without maintenance. In this case, his earnings will decrease. For this, the accountant during the calculation takes into account the exact number of days worked by the employee in the company.
System features
The salary system is considered easy to calculate, since the calculation requires adding up the monthly salary with different bonuses and surcharges. Earnings for each employee of the company consists of a fixed part, represented by a salary, as well as non-permanent, which is different surcharges, allowances or other payments.
Surcharges are assigned in certain situations, which include:
- the specialist is engaged in his work duties at off-hours;
- a citizen works on holidays or weekends;
- Engaged in night work;
- benefits for mothers or pregnant women;
- labor is carried out in harmful or completely dangerous conditions;
- teenagers get a job;
- charging money for downtime associated with equipment repair.
The salary is assigned without the influence of the above factors, so its amount remains unchanged.
What determines the salary?
The full-time salary system is considered interesting and in demand for many organizations. It allows you to fairly distribute funds between all specialists, but at the same time it is possible to allocate specific workers by paying a high bonus.
The size of the salary depends on various factors, which include:
- employee qualifications;
- available degrees, awards or achievements;
- length of service;
- the presence of various unique skills or knowledge, which include knowledge of a foreign language or the ability to work with complex computer programs;
- effective employee activities leading to increased sales;
- combination of several professions by one specialist;
- work experience and available education.
The fairness of the salary system is being established, therefore, these or those specialists working in the organization are not discredited.
The salary increases in the company exclusively to employees who have earned such a promotion.Therefore, based on various achievements, there is an increase in salary, for which the director of the company issues an appropriate order.
Accrual methods
With the salary system, the salary is accrued either in a particular organization or as a whole in a separate industry. In the first case, the enterprise is private, so the director independently decides to increase the salary of his employees.
If the salary in a particular industry rises, then such changes will affect only state institutions and their employees.
The salary is directly affected by the sphere in which the citizen works. The region of residence is also taken into account, since the minimum wage and other indicators differ significantly in different cities. Art. 129 TC contains information about what is the minimum salary with different allowances, so employers cannot pay funds that are less than this indicator.
How is the system applied in companies?
If the employer decides on the use of the full-time salary system, then he must understand how it is installed in the enterprise. For this, the following nuances are taken into account:
- the system is introduced by a collective agreement or an internal regulatory act of the organization;
- if the enterprise has a trade union, then its opinion is necessarily taken into account when introducing such a scheme;
- the salary is set in the form of a fixed amount, which is paid if the employee works out the required number of hours in the company;
- for each specialist, the salary is determined individually, since his work experience, qualifications, complexity of activity and other significant factors are taken into account;
- different skills of an employee can be taken into account separately or in aggregate, therefore, the salary of employees holding one position may slightly or even significantly differ;
- if the same salary is set for all employees of the same position, then the earnings of specialists are regulated by assigning different bonuses and bonuses, for which qualification or complexity of work is taken into account.
Therefore, the application of the salary system is considered to be a rather complicated process, as the employer must take into account many nuances in order not to offend any employee in any way.
Where is it used?
In Russian companies, such a system is used quite often. It is not very important to use the payroll system with a shift schedule, as the employer and employees do not have accurate information on how many hours will be worked out during the month. Therefore, difficulties will arise in calculating salaries when an employee enters sick leave or unpaid leave.
Most often, such a system is used in state or municipal institutions. Salaries are assigned to employees who minimize the income received by the company. Typically, a time-based salary system is used for accountants or managers, government employees or administrators.
Salaries are paid even to some contracted military personnel. The salary wage system with a shift schedule can be used, but at the same time, the accountant may have serious difficulties in calculating the earnings of specialists. Therefore, the company should maintain a time sheet.
Advantages of the system for company executives
Often, different companies establish a salary system for calculating employee earnings. Earnings of employees remains unchanged for a long time. Therefore, the payment of salaries is automated. For employers, the use of a payroll system for employees has the following positive parameters:
- clearly planned costs of the company;
- there is an opportunity to individually encourage any specialists, for which various bonuses, rewards or additional payments are assigned;
- due to the fact that the salary does not depend on the income of the company, savings are made for the organization’s budget.
The disadvantages of using such a system for the employer include the lack of motivation for employees to increase production or sales. This minus is eliminated by assigning various surcharges or bonuses. Another negative point is that you have to pay not only working days, but also weekends.
System example
You can consider the salary system of remuneration on the example of an organization engaged in the production of food. All employees receive the same salary, but the results of their activities are taken into account.
If any specialist exceeds the established plan, then he can count on a high premium. If he goes on sick leave, his salary does not decrease due to the absence from work for a certain amount of time. Such a system is considered effective for a manufacturing company, since it is possible to plan the organization’s expenses for employee wages without problems.
Advantages and disadvantages for employees
There are disadvantages and advantages of the salary system of remuneration for employees of different enterprises. The positive aspects of its application include the following:
- the specialist is confident that regardless of the result of work, downtime or other specific factors, he will receive a fixed salary, therefore, no external or internal circumstances can affect earnings;
- salaries can be calculated independently, so employees themselves can control the work of an accountant;
- approximately the same salary is set for all citizens, therefore there is no injustice in the company;
- if one of the employees is distinguished by any unique achievements, then he can count on encouragement in the form of a bonus or other rewards;
- team building is ensured through transparency in payroll.
The disadvantages of such a system for employees include the fact that they cannot independently influence their monthly income. They can only hope that for various achievements and actions they will be awarded a prize by the employer. Employees of the organization cannot rely on any part of the profit, therefore if in one month the organization receives a large amount of money, then only the company's management will feel it.
Calculation Examples
The peculiarity of the salary system of remuneration is that the calculation is simple, if there is accurate information about how much time was worked out by a specialist for a month. The company may not assign additional payments to employees, so specialists can only receive unchanged salaries.
For example, a company has introduced a salary system. All employees receive the same salary equal to 20 thousand rubles. per month. One specialist worked completely all month, but one day was spent on field activities, for which he was assigned a bonus of 3 thousand rubles. Therefore, his earnings will be 23 thousand rubles.
Features of the calculation when working on weekends or holidays
Often, companies need to hire specialists on holidays or weekends for various reasons. If employees receive a salary, then the provisions of art. 153 TC. Therefore, the calculation rules include:
- if the worked day is included in the monthly norm, then, in addition to the salary, a one-time daily rate or hourly rate is assigned;
- if it is established that work on a non-working day led to processing for an employee of the organization, then it exceeds the monthly rate, therefore a double rate is applied per day or hour.
Difficulties with the accountant may arise when determining the hourly or daily rate, since the legislation does not have rules for calculating these indicators. Therefore, based on the letter of Rostrud No. 2822-6-1, it is required to divide the monthly rate by the number of working hours in one month to calculate the hourly rate. It is important to consider possible shortened days.
Nuances with a shift schedule
If you decide to use the salary in the presence of a shift schedule, then some important features of the process are taken into account. These include:
- if a specialist works out all the month, he is paid a full salary;
- if the period is not worked out completely, then the amount of income is reduced in proportion to the number of days worked;
- if processing is detected, then additional funds are transferred to the employee in the form of an additional payment.
During shift work, the accountant has to pay a lot of attention to accounting for the working hours worked by each employee. For this purpose, a special time and attendance journal is kept at the enterprise. It should have a unified form and contain important information for calculation.
How is overtime paid?
If processing is detected, it is necessary to pay for such overtime work in an increased amount. In the first two hours of processing, the hourly salary increases by 1.5 times. If the processing exceeds 2 hours, then the subsequent time is paid in double size.
To determine the optimal payment amount, it is necessary to determine the exact number of processing hours, after which the hourly salary is calculated. The resulting values are multiplied.
Conclusion
The payroll system is used by many companies. It is most relevant to apply it in state or municipal institutions. When using this scheme, all employees of the company receive a constant salary, which can increase due to various bonuses and allowances. It has both pluses and minuses. Most often employers prefer to use such a system, receiving high profits from the company’s work, since in this case the costs of the company are reduced and regulated.
Each accountant must know how to properly calculate the salary when processing or working on weekends and holidays. To account for working hours in the company, you must fill out a special time sheet.