Wednesday, December 1, 2010

Free Prep For Cogat Test

What is a wage Intermediate - again a little theory

Over the years, the development of forms of remuneration, which is the intermediate wage, formed three main objectives of the remuneration in the form. The first of these is the willingness to supply part of their salary in a different way than in the form of salary.

The main reasons for this are the favorable conditions for the wage tax. The second objective is to increase security for the inevitable situation, such as pension or accident. Such a wage is often intermediate to force by law, such as health and pension contributions but the employer also has the option to increase its funding through additional contributions such as the third pension pillar. The third objective is to increase the purchasing power of the employee by allowing him to buy at a lower price for specific products. The employer has the ability to exploit economies of scale through Employee group purchases. By increasing the size of the purchase by buying multiple products from the same supplier, the employer is able to reduce the cost of buying the product desired by the employee. An example might be medical insurance. This aspect may also be used during the freezing of salaries. In this period the employer has the option to replace part of the basic salary for shopping group, thus without increasing the cost of maintaining the employee in the organization, increases the possibility of obtaining the goods desired by him. Such products include: sunglasses, health insurance, credit, etc.

[Tropman, JE (2001). The Compensation Solution. Lexington: University of Michigan Business School Management Series, pages 113-116]

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