Payroll costs and compensation

Wage costs

Wage costs refer to the expenses incurred by an employer for an employee. In our country, these costs depend on various conditions that are often defined in a collective labor agreement (CAO) for different sectors.

The following parameters determine the monthly wage, which, along with holiday pay and year-end bonuses, contributes to the employee’s gross salary. After these components, additional deductions apply.

1. Legal status of the employee: Whether they are a worker or a white-collar employee.
2. Job function or hierarchical level of the employee.
3. Age and years of experience.
4. Number of hours worked per month.
5. Sector in which your company operates.

Gross pay

Gross pay refers to the total salary of an employee before deductions for social charges and taxes. It includes various components such as:

1. Compensation for hours worked.
2. Year-end bonus.
3. Pay for public holidays and vacation days.
4. Possible overtime and fringe benefits.

Alternative or flexible compensation

With alternative or flexible compensation you choose innovative methods to pay your employees. This way you save on labour costs and motivate your employees with remuneration tailored to their needs and wishes.

There are various types of alternative remuneration and optimisations for your wage policy:

• The Salary bonus
• The Cafetaria plan
• Research & development