Remuneration Packaging involves paying an employee with a combination of cash salary and employee negotiated benefits. A well constructed salary package contains incentives for both employers and employees. Whether your goal is to use company resources more efficiently and therefore save money, increase accountability of salary expenses, or increase employee remuneration, remuneration packaging can offer a wide range of benefits to employers and employees alike.
A recent report in The Australian predicts that 90-95% of employees in Australia will receive the benefits of salary packaging within five years. Presently, the majority of remuneration services providers are interested solely in providing administration services to employer groups with little consideration given to the provision of quality advice either at the corporate level or to employees.
Clients are often faced with a process which is largely misunderstood by the general public and specialists alike. As a result, the proper and effective construction of employees’ packages and therefore the processing of payments on behalf of employees can become an administrative nightmare for employers and in many cases prohibits the offering of remuneration packaging to staff.
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