What are the elements of salary?

What are the elements of salary?

An average employee in the organized sector is entitling to several benefits- both financial and non-financial. The component of salary includes:

a. Wages and salary: wages is the hourly rates of pay while salary refers to monthly rate of pay.

b. Incentive: These are paid in addition to wages and salary. Incentive depends upon productivity, sales, profit or cost reduction efforts.

c. Fringe benefits: these include such employee benefits as PF, gratuity, medical care etc.

d. Perquisites: these are allowed to executives and include company car, club memberships etc.

e. Non monetary benefits: These include challenging job responsibilities, recognition of merit, growth prospects, comfortable working condition etc.