Example of a total remuneration statement

Statement of Pay and Benefits for John Smith 

Smith Jones Ltd 1 April 2004

As part of our ongoing research into the competitiveness of Smith Jones Ltd's employee benefits, we have prepared this personal statement for you. Our company values relate to the link between performance and reward, and in line with this we wanted to show you how competitive your total benefits package is when compared with other companies. This statement summarizes your pay and the value of your personal benefits. Hay Group, a major provider of market salary and benefits information, have prepared this statement using information provided by Smith Jones and information from their comprehensive databases.

Your Total Package

The graph below shows how your total remuneration package is made up:

Pay and Benefits

Your basic annual salary as at 1 April 2004 is:	£ 30,000 p.a.
Other Cash Payment (such as shift payments or a substitution allowance):	£ 3,500 p.a.
Potential Bonus: (actual 2003 payment was £2,000)	£ 4,500 p.a.
Potential Earnings:	£38,500 p.a.

The table below sets out the cost to Smith Jones of the benefits you are entitled to receive, as valued by Hay:

Retirement, Death and Ill-health benefits:	£4,500 p.a.
Holidays:	£700 p.a.
Company Car:	£5,200 p.a.
Other Fringe Benefits (see below for more details):	£1,500 p.a.
Total Cost of Benefits:	£11,900 p.a.
Total Package Value:	£49,900 p.a.

Other Benefits included above:

• Meals at subsidized cost or lunch allowances;
• Gifts, awards, advice and counselling (including pre-retirement and financial counselling);
• Professional subscriptions, where relevant to job;
• Free products;
• Sports and social facilities;
• Personal and accident insurance;
• Private health care.

In addition, you are currently eligible to receive the following benefits, which have not been included in the above valuation: l

• Further education assistance, where relevant to job;
• Free car parking facilities;
• Site facilities.

Comparison with Other Employers

We have commissioned Hay Group to conduct an independent assessment of the benefits offered by us compared with other UK companies in our market sector. The chart below compares the benefits package provided by Smith Jones to those provided for similar jobs by other employers. The chart shows that the total benefits package provided by Smith Jones is higher than that provided by most other organizations.

The Market Practice on this graph is based on the typical (median) figures from the Hay database of companies in our market sector.

Conclusion

We hope this Statement aids your understanding of your Total Remuneration Package. If you have any questions regarding this statement, please contact the Human Resources department, on 0207 1555 1234.

Neville Graham
Human Resource Manager

Notes

The base salary figure shown above is your base salary as at 1 April 2004. However, the other figures are based on the payments achieved and benefits you were eligible to receive during the 2003 calendar year (1 January to 31 December). National Insurance Contributions payable by us on your behalf have been excluded.

Your package has been valued by Hay based on annual pension costs over an average career (using Hay's method) and using typical costs for other benefits (as advised by Hay). The figures (such as the one for Retirement, Death and Ill-health benefits) may therefore be different to information previously provided to you by Smith Jones Ltd.

Although there is no legal requirement in the UK for a minimum holiday allocation, employers typically offer a minimum of 20 days' leave (excluding bank holidays). This statement therefore values the amount paid for any holidays over this 20-day minimum.

Every effort has been made to ensure the accuracy of this statement as at 1 April 2004. If this statement is not consistent with your actual package, as outlined in your contract of employment, then the terms and conditions stated in that contract will prevail.

If you have joined Smith Jones within the last year, you may not have been eligible to receive all of the payments and benefits detailed above. However, it is expected that such benefits will be offered to you during 1998, subject to your performance as an employee of Smith Jones.

The valuation of your benefits (other than pay) is intended to illustrate the total value of your package and to allow comparisons with those provided by other employers; the figures should not be used for any other purpose. This statement does not take into account your individual family or financial circumstances or your health, and is not a recommendation for you to follow any particular course of action.