Bezoldiging

Remuneration refers to the financial compensation paid by an employer to an employee in exchange for work performed. This encompasses not only base salary but also structural and incidental allowances, bonuses and other benefits granted in consideration for such work.

The term is of considerable significance in employment law, since the level and composition of remuneration determine the calculation of holiday pay, pension contributions, continued payment of wages during illness and any transitional compensation. Proper classification avoids disputes as to what does or does not constitute wages.

In practice, remuneration is set out in employment contracts or collective agreements and may be the subject of negotiations or proceedings before the subdistrict court, for instance where the question arises whether a bonus is to be treated as fixed wages.