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Wage fund: structure, payroll planning
Wage fund: structure, payroll planning

An entrepreneur who establishes an employment relationship with an employee is obliged to hire him for a certain amount in the form of wages. The employer is obliged to make payments in favor of his employees, taking into account benefits, additional payments and bonuses. At the same time, the composition and structure of the wage fund is regulated within the company.

Essence of wages

Salary is the amount that is allocated as a reward to employees. It can also be called monetary compensation, established depending on the qualifications, complexity of the work, quality and conditions of performance. It is documented in the employment agreement.

Payroll must contain the following elements:

  • employer name;
  • period to which the calculation relates;
  • date of payment of remuneration - according to this date, social security contributions and taxes are calculated;
  • payroll number or name;
  • signatures of people preparing calculations;
  • all constituent elements, including taxes and bonuses, other deductions.
payroll structure

Concept and concept

In every company, one of the most important elements is the payroll fund (PWF). It includes salary data from employees' personal cards and data on the monthly amount of cash compensation.

Under the wage fund is understood the total values ​​of remuneration to the company's employees, acting as the costs of the company itself in kind.

There is no clear definition of payroll in the legislation today. However, the Tax Code of the Russian Federation has an article on the cost of wages in the company (Article 255), which can be used to determine this category. The payroll must contain information such as data on the composition of payments to the employee (base salary, bonuses, allowances, remuneration, etc.).

The need for a payroll is caused by the following factors in the importance of employee benefits:

  • on salary and tariff rate;
  • co-payments and bonuses;
  • hard work awards;
  • skill bonuses;
  • increases for the results of labor;
  • other amounts.

Sources of payroll at the enterprise are:

  • product cost;
  • employer's own funds;
  • Targeted funding.

The size of the payroll may change throughout the year under the influence of factors: changes in the number of employees, dynamics of staff working hours and tariff rates.

fund structure analysis

Performed functions

The main functions of the FOT are:

  1. Social. This is the formation of goodworking climate and conflict prevention. In carrying out this function, the organization ensures the payment of remuneration to each employee for a full time. The remuneration must not be less than the minimum amount established by law. The wages of workers must also avoid a fall in real value. This fact can cause dissatisfaction and weaken the motivation of employees to work due to the possible deterioration of their financial situation. The social dimension is presented in an attempt to prevent deep income inequalities that could lead to increased poverty and exclusion.
  2. Expensive. Payroll management implements a cost function because remuneration is a cost to the employer. Reducing costs in individual enterprises determines the competitiveness of the economy.
  3. Profitable. In relation to the employee, remuneration corresponds to a function of profit. The wages of employees constitute income. Therefore, the employee is interested in maximizing the amount of remuneration.
  4. Motivational. Done using four premises: wages inspire people to take a job, provide stability in the organization, promote high performance and encourage employees to develop their skills, which leads to the development of the company and maximum results.
structure of the general fund

Composition characteristics

Structure, as a set of elements, largely depends on the wage system itself. It is a set of rulesregulating payments. The structure of the payroll implies that remuneration is payment for work already completed or advance amounts for activities that the employee will perform only in accordance with previously agreed terms of the contract.

The reward system can be of two types: fixed or variable. A permanent (fixed) level directly depends on the performance of an employee, group or organization. The amount of variable remuneration depends on the direction of changes in the basis of their formation. Factors affecting this size: individual or group work effects, financial results of the organization.

The payroll and its structure can be briefly described as fair, at the same time competitive. Employees must feel they are being fairly compensated and the employer must not incur unreasonable staffing costs.

Internal structure

Analysis of the structure of the wage fund is a mandatory element of management activities in the company. In the process of such a study, the internal and external elements of the amount of payments are studied.

The main purpose of the internal structure of the payroll is to implement a stimulating function. However, the motivation should not come from the pay amount itself, but from the fact that payouts can be modified using the appropriate components:

  • principal amount;
  • bonus;
  • awards;
  • fees;
  • profit share;
  • overtime value;
  • functional additives;
  • tuition allowances and more.

However, an effective reward does not have to include all of the above components. A structure that allows you to fully realize its function should be simple. Too much accumulation of various factors can negatively affect the motivation of employees. The output of this component in the system should be a direct reflection of the requirements established in the job description, and serve a specific purpose. Of course, all the above components can be divided into several groups.

dynamics and structure of the fund

External structure

Because within the organization there are differences in positions, in job content, in productivity, salaries should vary depending on the profession. The external remuneration structure serves to identify differences and ratios in payout amounts. The tools for determining this structure are the wage system.

Analysis of the dynamics and structure of the wage fund allows us to distinguish the following among the main internal structural factors:

  1. Wage distribution is the main range within the same job category.
  2. Subject range - determines how many different positions can be in one rank of positions.
  3. Average value - the arithmetic mean between the pay interval within the same job category.
  4. Penetration - This factor determines how much a person can earn a base salary at a lower ora higher category than the one under consideration. In this case, it is worth establishing such differences so that the positions are not too close. Diversity motivates to improve competencies, promotes promotion.
  5. Pay policy - the company's decision regarding the level of salary in the company when compared with competing firms.
  6. Rate increase - the amount by which an employee's base salary can be increased.
  7. The top remuneration rate is the maximum level of the base amount that an employee in this category can achieve.
  8. Low rate - the minimum level of basic pay that an employee in this position can achieve.

When identifying factors in an organization, it should be taken into account that they should be the result of an accepted general remuneration policy. It is also worth adding that the corresponding range of payments affects the implementation of the social and incentive function of the payroll in the company. It happens that an unreasonably large gap can become a source of work conflicts.

the structure of the fund is

Shaping the structure

The wage fund and its structure can be briefly characterized by the process that creates the level of individual remuneration. This is the payout structure that defines the payroll components. These components are related to the contribution to the work (base amount), the effect of the work (bonuses, bonuses), the culture of the company, the needs of the staff (various benefits).

The general principle of the formation of the internal composition and structure of the payroll is the simplicity and clarity of the componentselements. The main criterion for dividing into internal components that form the employee's income is the goal set for the remuneration system, in particular, the relationship with the content of work and its consequences.

Given the many descriptions of the literature in this area, as well as the variety of applied activities in the practice of companies (companies create their own payroll systems for their needs, freely forming the number and structure of employee benefits), it is reasonable to indicate a certain range of applied solutions. An effective reward, of course, does not have to consist of all the components presented. Each element should serve a specific purpose and should be a direct reflection of the requirements of the content of the work and the results of the action. However, payroll components can be grouped into several main groups, where the criterion for separation is the basis for their provision - the content of the work, its results, legal norms, specific conditions.

  1. Components of remuneration arising from the work performed, its requirements, the level of results, the quality of work and the qualification potential of the employee. These are the base amount, bonuses, rewards for results and quality, profit share, commissions, packages, payment under civil law contracts.
  2. Components arising from legal norms, working conditions, having the nature of social benefits. These are various allowances provided for by the Labor Code of the Russian Federation (overtime work, night work, burdensome conditions, etc.) and benefits (vacation pay, disability, etc.);
  3. Elements flowingfrom the individual characteristics of the company and internal conditions: anniversaries, internships, functional additions, various types of benefits, the thirteenth salary, etc.

Sample composition and structure

The table shows an example of the composition and structure of the wage fund

Structure elements

Use of individual payroll components

Basic salary

Job requirements, job complexity, job content, job ranking, position in the company, prestige, sense of security, vertical advancement tool, professional development, company development, current income, competence, job market price


Job impact, short-term goals, level of work done, behavioral expectations, performance evaluation, sense of equity, creativity


Exceptional behaviour, extraordinary actions, beyond mediocrity, employee recognition, budget for special projects. The value of premiums should be large, rarely used. For a small number of employees, it gives a sense of justice


Achieving the current financial results of the company, providing the company to the employee with the results of his effective work, confirming the professionalism of the employee, his awareness, development of the sales strategy

Bonus perks

Bonuses link the employee and the company, highlighting groups of employees, diversifying motivation tools, organizational culture, retaining employees

Profit Sharing

Motivational participation, company ownership, company identification, organizational climate

Assets and financial items

Activation of management personnel, increase in the cost of the incentive package without company costs - transferring them to the market, identification with the company, deferred income

Components of the motivational part of wages

Individualization of the motivational offer, reduction of the fiscal burden, linking the employee and the company, differentiation of employee groups, diversification of motivational tools, a tool to fight in the labor market

Overtime wages

Monitoring of working time, implementation of the provisions of the Labor Code of the Russian Federation, encouragement of additional time, organizational justice

Functional additions

Implementation of specific functions of the position, incentive to occupy leadership positions

Internship supplements

Loy alty during a period of unemployment loses its value and value of "old" workers.

salary fund in a nutshell

Formation rules

Amongthe basic rules for the dynamics and structure of the wage fund can be identified:

  1. Material reward is the basis for meeting the needs of the individual. The amount should be set in such a way that management can expect special treatment, behaviour, results, performance or individual development from the employee.
  2. Components should be appropriately and rationally related to the type of work and its results.
  3. The system must be consistent with the company's goals, strategy and market situation. In addition, it must be clear and legible so that the person knows what he is actually being rewarded for.
  4. FOT should depend on the position and condition of the enterprise. The motivation of workers should be increased not only by wages, but also by providing employment. However, the salary must be attractive enough to hire qualified employees. The pay system should be linked to the overall and HR strategy.
  5. The amount of remuneration should be related to the results of work and its consequences. Differences on this issue can lead to dissatisfaction.
  6. Too much internal fragmentation and vague award criteria create misunderstandings among employees.
  7. Differentiation by level, components and forms of payment as a result of performance evaluation.
  8. The system must comply with the law and the organizational culture of the company.

However, in order for the above principles to come into force, when building the structure of the general payrolltwo things to consider:

  1. Internal consistency of the system. It should be objective and fair, thanks to which it will guarantee the stability of employment, increase the willingness of employees to develop and motivate them to work.
  2. External competitiveness. The remuneration should be attractive in relation to salaries in other companies, which will help attract new employees.
fund at the enterprise

Shaping tools

Each company has its own payroll policy that ensures appropriate resources and proper allocation, allowing for the designation of a remuneration system. However, the basis for determining the structure of the wage fund at the enterprise is the allocation of appropriate tools for the elements of the internal structure. These tools serve as a source of information needed to determine the levels of components of the payroll.

The table shows the main tools for forming the structure of the wage fund.

Performance evaluation

Labor market analysis

Competence systems

  • employee evaluation system;
  • work rules;
  • management by goals
  • analysis of practice in the company;
  • position held

employee needs

analysis of dynamics and structure


Structurethe total wage fund consists of the following elements.

1 component - basic salary, this is a fixed element of remuneration. The amount is determined based on the company's payout tables. The principal amount is formed according to the competence, experience and responsibility of the employee. This is a contribution to the work.

2 element: additional components (variables):

  • bonuses are rewards for the effects of both individual and group work;
  • remuneration is an expression of recognition from an employer to an employee;
  • commissions - amounts for the employee's participation in the company's turnover;
  • special (one-time) payment - used when the bonus system is insufficient;
  • benefits - related to pension insurance, sick pay or he alth insurance;
  • privileges - a form of remuneration most often given to employees in leadership positions (allocation of a car from a company that covers telephone costs);
  • participation in profits or in the capital of the company.

3 element - components guaranteed by the provisions of the Labor Code of the Russian Federation. Are mandatory. They must be paid in the event of certain situations provided for by labor legislation. These include:

  • reward for downtime and availability;
  • for overtime;
  • night work allowance;
  • sick leave;
  • during the annual leave.

According to another suggestion, the components could be organized into four modules,forming a complete package of the FOT structure:

  • fixed amount - includes base pay, permanent allowances, overtime and legal allowances;
  • short-term incentives are bonuses and rewards;
  • long-term incentives - we althy influences, such as stocks, shares in profits or savings, such as trust funds;
  • additional benefits (benefits) - these include such tangible things as a company car, discount on fuel, a service phone, housing and equipment; cultural elements such as invitations to cinemas, theatres, recreational facilities such as swimming pools, gyms, etc.

All of these modules can be applied in different ways in companies. Some of them may not exist at all. It all depends on the scope of business and the organizational form of the company.

The first two modules can be called direct income, while the last two remain indirect in the payroll structure. Thus, the structure of the general payroll consists of three main elements: basic pay, bonuses and benefits.

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