What is Consolidated pay?

Posted on 29th Jun 2018 | 5361 views

4 avg. rating (80% score) - 1 votes

Consolidated salary meaning

Consolidated salary meaning is the amount you get without any allowances or perks it is the permanent salary irrespective of performance criteria or target achieved etc. For example, if your Consolidation salary is Rs15000 means you'll surely get Rs15000 and rest above depends on your performance. Consolidated pay sometimes refers to the full amount salary which includes both fixed and changeable pay. Consolidated pay means the cost to the company that includes all costs incurred by the company at the request of an employee like employers contribution to the car with Chauffeur, Free house/company leased accommodation, PF, Gratuity Insurance, etc. An employee needs to know the breakup of the benefits which are included in such a package. When an employee has a short period view of the employment, this choice might be suitable and take home salary will be high when compared to Normal pay.

Consolidated salary

Consolidated salary

Consolidated salary includes all profits and all costs incurred by an organization on the employee like employers contribution to Gratuity Insurance, PF, accommodation assistance, children’s education, leave travel, medical insurance etc. It must be a very rare case for an organization to offer, there are some companies in the market who are doing this, a choice of consolidated or regular salary. If you have such an opportunity to opt then think intelligently for there are other elements also to be considered in terms of service and separation, tax, leave and so on. Hence consolidated pay meaning is the total amount of pay the company will be directly or indirectly paying if it recruits an individual. This includes every possible cost the organization pays for an employee which is possible can't even imagine.

Example of consolidated salary

A Company has compensation as

•Base pay: 20,000 per annum

•Joining bonus (this is a one-time bonus that an organization gives for joining them): 5,000

•Stock award for a period of 5 years: 6,000

With the following perks:

•Free food

•Free insurance

Then,

Consolidated salary= 20,000 + 5,000 + 6,000 + cost of food for one employee per year + cost of insurance for the employee

0 Comments on What is Consolidated pay?

Comment as a guest:

All rights reserved © 2020 Wisdom IT Services India Pvt. Ltd DMCA.com Protection Status

<