Modern remuneration system in foreign country

Abstract

The article describes the formation features of modern remuneration systems, taking into account the main aspects and methods of labour organization in foreign countries. It also determines the requirements for compulsory salary increase in certain foreign countries. The article focuses on the observers’ forecast of remuneration level changes and the formation of five trends in employee salary and additional payments, such as: regular bonus payments for performance; transparent remuneration; more employees will receive bonuses; analysis of equity aimed at remuneration payments; the formation by states of their own minimum wage policy. It notes that there has been a positive economic change and an increase in demand among states due to increased political influence on the establishment of minimum wages. The data on the minimum wage for January 2020 has been studied and it was pointed that in 2020 Ukraine took the fifteenth place out of 54 countries in the growth rating of minimum wages in the world. Moreover, the main components of the system used at enterprises to provide incentives and increase productivity of employees have been determined. It is also noted that in some foreign countries there is a tendency to regulate and establish maximum wages of intellectual workers. The article gives a comparative analysis of wages of intellectual workers versus manual workers; and it indicates that the wages of intellectual workers are on average higher than wages of manual workers: in Germany – by 20%; in Italy and Denmark — by 22 %; in Luxembourg — by 44 %; in France and Belgium — by 61 %. In comparison with qualified workers, craftsmen earn more: in Germany – by 15%; in the Netherlands — by 23 %, in France— by 30 %, in Belgium — by 40 %. In the United States, lower-level executives (craftsmen, group and sector leaders) have an annual income on average 1.5 times higher than an annual income of manual workers. The article points out that foreign countries tend to use and combine various remuneration systems, each of which consists of two parts: basic (permanent) and additional (variable). It has been suggested to improve and develop new approaches to provide incentives for employees of domestic enterprises that will have a positive impact on their performance.