Many people consider the salary package the first thing they consider when applying for a job. However, they often focus solely on the basic monthly or annual salary and overlook other significant components of the package.
Understanding these elements can lead to more meaningful discussions with company representatives, resulting in a more advantageous compensation package. Here are the key details:
What is a salary package?
A salary package includes more than just the basic salary. This package contains additional benefits such as commissions, annual leave, bonuses, and housing subsidies.
If a company representative mentions the salary package, ask what specific benefits are included. It’s important to clarify this information before accepting a job offer, as making changes to the package after joining the company can be difficult. Prioritize companies that offer comprehensive salary packages with a variety of benefits.
Salary
Salary refers to a fixed amount of compensation. Some companies pay wages based on hourly work, while others may pay weekly or monthly.
The base salary can vary for each employee and is typically determined by factors such as work experience, educational qualifications, and certifications.
Commission
Many companies offer commissions based on employee performance. This incentive is commonly provided when the company meets its established targets.
Commissions are significant in sales roles, and some service companies also reward employees for acquiring new clients.
Year-end bonus
Some companies provide bonuses at the end of the year to motivate employees. These bonuses are often given to high-level executives and finance professionals.
The amount of the year-end bonus is usually based on the employee’s performance and the company’s profitability.
Double pay
Double pay is distinct from a year-end bonus. Depending on their policies, some companies pay double salaries in the 13th or 14th months. The amount of double pay is based on the employee’s monthly salary.
Annual leave
Employees who have worked for a company for more than 12 months are entitled to at least seven paid annual leave days and public holidays.
Some companies allow employees to carry unused annual leave into the following year. Before joining, it’s crucial to inquire about their policies on yearly leave.
Sick leave allowance
Many companies provide a sick leave allowance. In the first year of employment, employees typically receive two paid sick leave days per month, which increases to four paid sick leave days each month in the second year.
However, there are specific criteria for utilizing these leave days: employees must have sufficient sick leave accrued, provide a medical certificate when necessary, and use ill leave within four days.
The sick leave allowance is generally calculated at one-fourth to one-fifth of the average daily wage for the days taken.
Other elements of the salary package
- Health insurance
- Staff discounts
- Education or training concessions
- On-site childcare
- Share incentives or stock options
- Meal expense reimbursement
- Overtime pay
By understanding all the components of a salary package, you can make more informed decisions about job offers and negotiate better terms.