Wage Fund - this is the amount of funds (cash), which is intended to pay for the results of labor of employees. Its composition includes:
- the amount of remuneration accrued by the business entity for the hours worked, as well as allowances and bonuses of a stimulating and compensatory nature, the accrual of which is connected with working conditions and the working day regime;
- payment accrued for unworked hours;
- lump-sum incentive bonuses;
- regular payments to pay for fuel, housing, food.
The payroll in terms of remuneration for hours worked includes:
- cash accrued at salaries and tariff rates, as well as piecework rates;
- the value of the goods issued in kind;
- remuneration and bonuses of a regular or periodic nature (regardless of the source of payments);
- surcharges and allowances to salaries and tariff rates, performing a stimulating function (for combination, professional skill, etc.);
- additional remuneration that is associated with dangerous or harmful working conditions, as well as work at night or overtime;
- accruals for hours worked for employees not included in the payroll, and part-time workers.
The payroll in terms of cash accrued for unworked hours includes:
- paid man-days, which are part of the additional (according to the legislation or the collective agreement) and regular holidays ;
- accrual of funds for the period of study and retraining of personnel;
- remuneration for unworked hours during the working day;
- cash payments to employees involved in the performance of public or state duties;
- payment for grace hours for adolescents;
- the amount of money that the company accrues to its employees who are forced by part of the administration or as a result of downtime to work part time.
The salary fund in terms of lump-sum incentive payments includes:
- one-time bonuses;
- cash additional payments accrued upon the provision of holidays;
- remuneration based on the results of annual labor;
- compensation payments for unused vacation days;
- remuneration associated with length of service;
- the amount of shares issued to employees free of charge, etc.
The payroll in terms of payment of housing, fuel and food expenses also includes the monetary equivalent:
- food products issued free of charge or at discounted prices;
- provided free housing and utilities or the amount of payment for them;
- fuel provided free of charge.
The calculation of the amount that makes up the payroll is made for the reporting month, quarter or year. The value of these indicators is necessary for:
- determining the costs of the enterprise for the payment of labor resources;
- compilation of income generation accounts in the SNA;
- determination using the distribution method of gross domestic product.
Knowing the value of the wage fund, it is possible to determine the average wage of enterprises, organizations, industries, as well as the whole economic structure.
The amount of remuneration to employees of a business entity is taken into account depending on their categories. The structure of the payroll is not the same for individual groups of personnel as a whole. The results of the economic analysis indicate the difference in categories in various sectors of the economy. Knowledge of the structure of the payroll is a prerequisite for developing a strategy in the field of remuneration for labor and collective bargaining between organizations and employees.