The pay is the amount, which an employer an employee owes due to one between both closed work contract. In Switzerland and the term for monetary values a remuneration is used otherwise rarely. Historically, however not legally, two forms of the payment are differentiated, the salary of an employee and the wages of a worker. Colloquially wages, payment, content, and remuneration are equated.

Terms such as labour costs or continuation of wage payment in the medical case (today: ) Always refer payment continued payment after the payment continued payment law to both payment forms (wages/content).

Determination of the payment height

After the principle of the freedom of contract the height of the remuneration of the employee is freely compatible in the work contract. The market situation plays just as substantial role as the expertise of the employee, which load on the job, which responsibility, which it carries and which conditions of work, under which it works; likewise fundamental considerations can play a role to the wage level (e.g.: the stress ratio between minimum wage and efficiency wages).

It prevails however a structural imbalance between the employer and the employee, which would lead with unrestricted freedom of contract fast to Lohn-Dumping. Due to its there is the payment height adjusting regulations.

If the pay corresponds not to the traffic-usual remuneration, but is appropriate the payment approx. for 1/3 below the usual one, the remuneration agreement is immoral iSv. "§ 138 BGB and thus futile. In place of the futile remuneration agreement then the usual remuneration steps. Criminally the usury facts can be fulfilled "§ 291 exp. 1 sentence 1 Nr.3 StGB.

If no agreement over the payment height was made, then the remuneration height determines itself according to the so-called "„tax "“BGB "§ 612 Abs.2, with absence of a tax according to the traffic-usual remuneration in the area of the work contract.

However at least the remuneration agreed upon in the payment collective agreements form a minimum payment for employer-employee relationships in the range of application of collective agreements, which may not be fallen below.

In former times frequently sex specific is not today because of offence against discrimination prohibitions de jure predominantly spread used payment identification systems, like the use of light wage categories for women, any longer interspersable. Since however the job evaluation differentiates still to favour more typically "“, full-time-busy female employees in the producing trade, trade, credit and insurance trade earn 30% less than their male colleagues e.g. in the old Lands of the Federal Republic. In the new Lands of the Federal Republic the discrepancy with 23% precipitates around some smaller.

In addition light wage categories play a role with the discussion over a low wage segment, which badly trained employee is to serve the integration into the job market.

The height of the wages, as far as they are agreed upon in collective agreements, is documented in public tariff registers, which everyone can see. The Federal Ministry for economics and work and all Lands of the Federal Republic lead tariff registers. In the Lands of the Federal Republic usually the work or Social Departments is responsible.

With temporary inability to work employees and workers payment continued payment is granted.

Taxes and social security contributions

The gross wage and/or the gross salary represents thereby the entire agreed upon amount of compensation. In order the net wage too received, various amounts are taken off, i.e.:

• Contributions to the tax office (taxes)
  • Wage tax (this is an income tax pre-payment)
  • Solidarity tax
  • Church tax if necessary.
• Social security contributions (VGR: Social insurance contributions)
  • Contribution for legal old age pension insurance
  • Contribution to the legal health insurance
  • Contribution for legal unemployment insurance
  • Contribution to the legal nursing care insurance

The net wage and/or the net salary designates the part of the wages, which are available disbursed and thus for living costs.

To note it is also that the employer has to carry the employer portions out additionally to the gross wage still to the social security contributions, so that the Lohnaufwand is appropriate for 20 25% approximately over the gross wage. In the economical Gesamtrechnung thus the gross wages are and - salaries by the social insurance contributions of the employers to increase, in order to come in such a way to the employee payment.

Ground for settlement

The pay can be agreed upon and paid off according to different criteria.

• Account by the hour (hourly wages): The pay is accounted for after the hours actually worked. Also vacation payment or holiday payment is by the hour charged.
• Monthly (e.g. monthly salary): It is agreed upon, independent an amount for a whole month of the length of the monthly.
• Piece/piece-work wage: The payment depends on the numbers of items finished placed. Vacation and holidays are remunerated with an average.
• Overall remuneration: This kind resembles already very strong an independent activity, since for a whole project independently of the work duration one remunerates.
• Commission remuneration: with dependent commercial agents additionally to a basic salary (fixed sum) a certain percentage of the obtained conversion is usually paid.
• Turnover-dependent pay: Here a part of the incomes is paid as payment (e.g. Taxifahrer).

Usually a content is over the months equal lasting amount, while the wages on hour basis are paid and therefore to vary.

Special inventory parts of the payment

To the basic salary still extra pay can to be e.g. come as commissions with field representatives or Christmas benefit or holiday pay. A further special inventory part monetary values of advantages and payments in kind can be or about an addition for Sundays, holiday and night work.

Special forms of the payment computation

Frequently one is monthly agreed upon equal lasting remuneration. The payment can be calculated however after different bases. Accordingly there are the typical Zeitlohn as well as kinds of piece wages to chord and premium wage.

Zeitlohn: With this kind of the computation the yardstick for the remuneration is excluding the duration of the work time.

Piece-work wage: Here the foreign exchange applies "“the more highly the work, the more highly the wages"”.

Premium wage: By the increasing automation of the manufacturing process the piece-work wage loses ever more at meaning. The computer-controlled manufacturing machines take over a majority of the work. To the place of the piece-work wage the premium wage steps.

The premium wage considers above all achievements of qualitative kind. It is paid, if

• Standard times to be fallen below,
• the permissible committee ratio is fallen below,
• the assigned operational funds to be optimally used and thereby the waiting periods shorten,
• succeeds saving energy or materials.

A standard capacity is likewise put at the basis. The enterprise pays thus a basic wage (either as time or as piece-rate wage) and a remuneration, which are achievement dependent. This remuneration does not benefit however as full with the chord the employee; it is divided rather between the enterprise and the employee. The portion of the employee is called premium.

Maturity of the payment

The payment is to be paid usually in accordance with (in Germany "§ 614 BGB) afterwards - thus during monthly remuneration to the end of the month -. Occasionally, but ever more rarely, other maturity times are in work or collective agreements (e.g.: Monthly center)

Economical and economical classification

In the political economy one designates the sum of all payment stream of a national economy, which flow to working for their work, with the Plural of wages however also thus to the factor of production work to be paid in particular. In the economical Gesamtrechnung the gross wages are and - salaries the employee payment less the contributions of the employers for social security. If one from the gross wages and - salaries the contributions of the employees for social security and the wage tax off, then if one receives the net wages and - salaries pull.

In the management economics something similar applies related to an enterprise or a product, whereby the salaries (in the sense the work-repaid for employees) constitute a part of the entire labour costs here usually as overhead costs. From view of the receiver of the pay it is part of its income.

With respect to the political economy still between real wage and tarif wages one differentiates. The real wage differs from tarif wages by freiwillige increased output of the employer, by overtime bonuses etc. the wage drift is the difference of the growth rates of the average real wage and average tarif wages. It is considered as market indicator.

Etymologie of the term payment

"“Payment"” (because phonetically similarly with "“final money"”) does not have to do anything with "“money"”, what one kriegt at the "“end"”. "“Payment"” is called in verbalisierter form "“repays"”, which as much is called as "“recompenses"”.

Articles in category "Pay"

We found here 6 articles.

Related Websites

We found here 4 related websites.

• 2006 Salary Tables and Related Information
  For more information on the General Schedule and Law Enforcement Officer pay tables, agencies may email at pay-performance-policy@opm.gov. ...


• eBay UK
  If you are seeing this page, your browser settings prevent you from automatically redirecting to a new URL. Please click here to continue.


• eBay.com
  If you are seeing this page, your browser settings prevent you from automatically redirecting to a new URL. Please click here to continue.


• PayPal
  PayPal lets you send money to anyone with email. PayPal is free for consumers and works seamlessly with your existing credit card and checking account.