As remuneration gets more complicated and as employees try and plan their lives , I think it is a great idea to agree with your employees what they are entitled to in terms of the policy and what they will be paid this year. Generally the medical aid increases can also be discussed and how this will affect take home pay.
It is also an opportunity for the employee to ask any questions or to make any changes that they wish to make as to how there remuneration is structured
We call this the remuneration contract.
A remuneration contract is an agreement between you and your staff, detailing what and how they will be paid for this year. It would typically cover:
1) Your cost to company total and how it is made up
2) Your monthly cash component
3) Any agreements on a 13 cheque
4) Your car allowance or company car or the details of the mileage reinbursive scheme.
5) Medical aid subscriptions and changes to the scheme
6) Retirement planning
7) Group life insurance and dread disease cover.
8) Any agreements on commission, production bonus
9) Number of annual leave days available and details of the leave scheme
Download a free sample remuneration contract HERE