What is “Fair Remuneration”
It is commonly accepted that everyone who works has the
right to remuneration. The Universal Declaration of Human Rights states in its
article 23.3 that (…): “Everyone who works has the right to just and favorable
remuneration ensuring for himself and his family an existence worthy of human
dignity, and supplemented, if necessary, by other means of social protection.”
Remuneration refers to the total amount an employee receives
for performing a service or for being employed by a company or organization.
Remuneration is all compensation an employee receives for services rendered,
monetary and non-monetary (amfori, 2019).
When preparing fair remuneration pack HR has to play a major
role & this will enable to maintain competitive compensation scheme within
the organization.
As per the amfori (2019) there are three element to thinking
of:
Legal minimum wage: is a legal instrument at the disposal of
governments to protect workers against unduly low pay and to overcome poverty.
Living wage: is a concept introduced by civil society to
address the gap between the prevailing wage and the wage level that could
provide workers and their families with a decent standard of living. Living
wage Is not defined by law & has no binding nature.
Additional qualitative elements: Fair remuneration includes
other components, which are excluded from the legal minimum wage and living
wage calculations such as Premium paid overtime, Social benefits, In-kind
benefits and bonuses, Subsidized or free transportation, subsidized or
free-living space, subsidized or free canteen services, Opportunities for
education or training.
Template for calculating remuneration.
amfori is the leading global business association operating
in Brussels for open and sustainable trade, amfori bring together over 2,400
retailers, importers, brands and associations from more than 40 countries.
Below is the template amfori introduced to calculate faire remuneration.
https://www.amfori.org/sites/default/files/Template%205%20Living%20Wage.pdf
Advantages of fair remuneration
Fair compensation can inspire employees to give their very
best, keeping your top performers engaged and encouraging others to engage
more. It also improves happiness and job satisfaction, which can lead to lower
turnover and higher retention.
B-Lin Apparel (Sri Lanka) Practice on Fair Remuneration
- B-Lin Apparel is a registered business partner with amfori both social & environmental module.
- Senior executive – Social Compliance & Manager Human Resources are responsible to conduct fair remuneration survey each year & result should be submitted to the senior management & to amfori as well.
- Senior management team consider fair remuneration survey details during annual salary increment together with legal requirement on minimum wage Sri Lanka.
- This practice allow each category of employees receiving equal, fair remuneration.
References
amfori, 2019. amfori. [Online]
Available at: https://www.amfori.org/
[Accessed 10 April 2021].
UNRISD,
2020. United Nations Research Institute for Social Development. [Online]
Available at: https://www.unrisd.org/80256B3C005BCCF9/(httpAuxPages)/7D0593E39D1519418025860F00537B7E/$file/RPB30---SDPI-Fair-remuneration.pdf
[Accessed 10 April 2021].
This is a very good article and sensitive topic to discuss. When its come to salary increment and the salary gap between top management vs bottom line staffs there is a vast disparity .
ReplyDelete940% Increase in CEO pay
12% Increase in worker pay
www.unrisd.org › RPB30---S...PDF
Web results
Fair Remuneration - United Nations Research Institute for Social Development
(Accessed on 19th of April )
Agree with the author. Fair Remuneration can be used to appraise the performances of the employees, and it ultimately motivates employees to work with enthusiasm. Author has well explained the topic. Knowledgeable article to read.
ReplyDeleteAuthor has well explained the reality of the selected topic.This is one of the important topics to discuss
ReplyDeleteWhen the companies pays employees well, they can extract maximum talent out of them. This will increase employees moral and motivation. The employer can retain the best employees with them. Also this will lead to good performance.
ReplyDeleteAs per the Lockwood and Walton(2008)One way through which employers can retain the workforce is through offering a good compensation package. An organization can only be successful in its retention strategy if it offers competitive, market-related pay and benefits because this motivates employees to become committed to the organisation
ReplyDeleteOne of the fundamental human rights is the right to fair remuneration. Ruwan has well described about fair remuneration
ReplyDelete