Do you use consistent salary terminology?

Last updated by Ben Dunkerley [SSW] 5 months ago.See history

When discussing pay, ambiguity is a foe. Terms like 'salary' or 'pay' are too vague and can lead to misconceptions about what is included in an employee’s final payment.

In Australia, there is a mix of terms used:

  • Remuneration
  • Total Remuneration Package (TRP)
  • Remuneration Package
  • Remuneration paid to an employee as a reward for their services
  • Pay
  • Pay Terms
  • Payment Package
  • Salary
  • Salary Package
  • Earnings
  • Compensation
  • Compensation Package
  • Wage structure
  • Salary Package Including Super (Recommended ✅)

The last option is the best because it prevents misunderstandings. The term makes it clear that the figure includes superannuation contribution, which is essential to avoid the unpleasant surprise of salary shock where employees may not realize that super is part of their total pay.

Figure: Bad example - ambiguous phrase means confusion

Figure: Good example - no confusion as to what the payment includes

Whenever you are worried there might be confusion about a phrase, it’s always a good idea to clarify with the other person and you should put in writing what you agreed with the phrase 'as per your conversation'.

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