Wage Compensation Models: An attractive way to reward your employees
Companies tend to consider the possibility of compensating their collaborators in different ways, since human capital today is often motivated by more complex remunerations, including in addition to the common salary, bonuses such as salaries in kind, emotional salary, and even compensation of nature other than salary.
Did you know that in Costa Rica you can compensate your employee’s through means other than the common wage?
Due to this, wage compensation models come to play an important role when questioning the different methods of compensation for the human capital of a company.
Concepts such as the double Christmas bonus or triple unemployment compensation are usually presented as “distant” or unknown; even though they are recognized in Costa Rican labor law, there are few employers who apply it.
So… what are the wage compensation models, and how can I apply them in my company?
This option consists of several schemes that allow a job reward other than salary remuneration – remember that salaries are subject to social and tax charges – for which the wage compensation models are extremely attractive, meaning savings in said charges and consequently carrying benefits for both parties in the employment relationship.
Within these schemes, we can find options such as:
- Double Christmas Bonus
- Double or Triple Unemployment Compensation.
These compensations are a discretional power of the employer, who can voluntarily decide their application and regularity.
Although these compensation schemes are beneficial for both parties under the employment relationship, it is important to take into consideration that when implemented they must be carried out with the correct legal advice since they must be duly developed and documented to achieve their objective of a nature other than salary.