What’s in a Salary Package? Well quite a lot perhaps!
As much as we would all love to be working in a job that we are really passionate about, the reality is that many, if not most of us are working for the money. Paying the bills and putting the bread on the table are the priorities after all.
When looking for a new job therefore, one of the first things we look at is what it would be paying us. What is the annual salary? What would the take-home pay be? What other benefits are there? Most companies these days tend to offer additional perks and benefits to their employees on top of the basic salary. This can make the overall remuneration a lot more attractive. To help you weigh up what is in a Salary Package, here are some basic factors to consider:
Bonuses
Commission and bonus schemes are common, particularly in sales related careers. Consider how they are calculated – are they monthly or annual? Are they based on individual or team performances ? And most importantly are the targets associated with them realistic?
Company Car / Car Allowance
Although having a fancy company car may seem like an exciting option, it must be remembered that you will be taxed on it. the amount you are taxed will relate directly to how much you use the car for work purposes. If you already have a car, you may be offered a Car Allowance instead which is simply paid as part of your salary.
Pension
Retiring may seem a long way off, but it is never too early to think about your pension. Some firms offer Final Salary pension schemes which give you a benefit based on what your salary was towards the end of your employment. Other schemes include Money Purchase schemes where you or your employer invest money regularly with the aim in the end of receiving an annuity. Later this year, the UK government is introducing auto-enrolment which will mean that all eligible employees automatically can become members of a qualifying pension scheme. Try and find out what options would be available to you and what contributions you and your employer would both be making.
Relocation Allowance
If you have to relocate to take up the position, many companies offer an allowance to help with the move. This may include the actual costs of selling your home and buying a new one and / or the actual removal costs for your furniture and other possessions.
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