Fixed pay
It refers to the basic salary plus all guaranteed pay received by an employee over the year (e.g. Christmas bonus).
The guaranteed bonuses refer to amounts of money which the employee receives regardless of performance.
Usually all salary surveys and reward consultants refer to the gross annual amount.
Fixed pay = Basic pay + All guaranteed bonuses
Example:
Let's say we have an employee that received last year the following gross amounts:
- Basic pay (salary) per month - 1000
- Christmas bonus - 1000
- Performance bonus - 2000 - twice a year
- Sales bonus - 3000 - once a year
- Meal vouchers - 300 per month
From the above guaranteed pay is Christmas bonus. All other, except salary, depend on employee performance or are benefits.
Fixed pay = (1000 x 12) + 1000 = 13000
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