• Kiia-Bettina

Salary vs Remuneration

Päivitetty: 3. joulu 2019

I want to write a few postings related to billing. I myself do not have complete control over these, so I want to write about this so that I will repeat these to myself.

What to keep in mind when billing for an assignment?

Salary: The salary of an employee who is in employment, ie a person with an employment contract / employment relationship. Wages are thus net income.

The salary statement distinguishes between all social expenses, ie retirement, ie compulsory unemployment and pension contributions and other obligations. The employer has other paid contributions, such as sick pay / holiday pay and any overtime pay.

These appear in the payroll slip with a +/- sign and can be enjoyed or not.

Entrepreneur / freelancer / light entrepreneurs are less likely to be paid by companies where they work on consignment.

That is, salary is what the employer pays.

Remuneration: What for example does an entrepreneur / freelancer / light entrepreneur, ie a non-employee, get for work where unemployment and pension contributions have not been paid.

That is, these costs must be paid by the entrepreneur.

Because of this, the amount of salary and remuneration is different even if the job was the same. When paying the bonus, the contractor does not have to worry about side costs, which means that the tax card does not have to be delivered and a salary does not have to be paid. Just paying the bill is enough.

In an employment relationship, the employer must ensure that collective agreements and / or minimum wage matters are implemented. That is, the entrepreneur himself has to make sure that he asks for a decent compensation and puts a realistic price on the job because that will cover all the expenses.

Here is the difference between pay and compensation. An entrepreneur may lose a lot of income on a monthly basis, but spending usually stays flat, both for the company and for his personal expenses.

Part-time workers and zero-hour etc. workers could somehow be compared to entrepreneurs because jobs depend on supply. Even consignment workers have monthly expenses like rent, food etc.

The employer is responsible for the employee's legal expenses. Again, the remuneration recipient must take care of them himself and be aware.


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