Question

The term 'remuneration' means compensation or pay, but it has a broader meaning than pay because it can include not just basic salary or bonuses but commissions and other payments or benefits paid under the terms of an employment contract as well. It is the reward for employment in the form of pay, salary, or wage, including allowances, benefits (such as company car, medical plan, and pension plan), bonuses, cash incentives, and monetary value of the non-cash incentives.

Which of the following are the correct methods of remuneration in the factories?

(i) Time-rate system
(ii) Amount-rate system
(iii) Piece-rate system
(iv) Absence-rate system

[1 mark]

• A. (i) and (ii)
• B. (i), (ii), and (iii)
• C. (i) and (iii)
• D. (i), (ii), (iii), and (iv)

Answer 1

The correct option is C (i) and (iii)

The two broad methods of calculation of remuneration are time-rate system and piece-rate system.