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Corresponding author:
1 Vinnytsia National Agrarian University, Ukraine
E-mail: angelikaam@ukr.net
ORCID: https://orcid.org/0000-0001-9514-504X

DOI: https://doi.org/10.30525/2661-5150/2022-2-13

ECONOMIC ESSENCE, FORMS AND TYPES  
OF PAYMENTS FOR EMPLOYEE BENEFITS

Anzhelika Mashevska1

Abstract. The article reveals the economic essence and importance of wages as a component of current payments 
to employees and studies the methodology and organization of accounting and taxation of remuneration.  
The problems of organization and methods of payroll accounting are determined. These are the main shortcomings 
in the field of taxation, as well as the problems of using the tariff system as the basis for accounting and 
documenting payments for remuneration with personnel. Methodology. The normative and legislative regulation 
of accounting and documentation of payments for remuneration is analyzed. The requirements for the formation of 
the organization of remuneration accounting, which determine the tasks, the system of indicators, documentation 
and the system of accounts on which the relevant information is accumulated, are presented. Results. It is concluded 
that the improvement of labor accounting and its remuneration at enterprises should be based on the optimization 
of tariff regulation of wages, namely: improvement of the tariff system by establishing ratios of tariff rates 
depending on the level of qualification of the worker; introduction of flexible forms and systems of remuneration, 
including contract and tariff-free; collective regulation of wages. The main ways to improve the display of wage 
accounting are proposed. Practical implications. The organization of document circulation on employee payments 
is investigated, the methodology of synthetic and analytical accounting of payments to employees for worked 
and unworked time is determined. The methodology of conducting audit procedures for payments to employees 
is considered, the effectiveness of employee benefits is evaluated. Value/originality. The scientific novelty of the 
work consists in summarizing theoretical and practical material on the methodology, economic essence, forms and  
types of payments for employee benefits. The theoretical essence of calculations on remuneration of the  
enterprise is determined, the regulatory and legal regulation of payments to employees in Ukraine is investigated, 
the tasks of accounting, auditing and analysis of employee benefits are considered.

Key words: organization of accounting, payroll taxation, accounting methodology, tariff system, documentation, 
accounting accounts, remuneration.

JEL Classification: M41, J30, J31, J39, M40

1. Introduction
In modern conditions, the need to ensure stable 

economic development of Ukraine and increase the 
living standards of its population is particularly acute. 
The issue of employee payments is now concerned not 
only by legal scholars or economists, but primarily by 
ordinary citizens whose desire is to have a guaranteed 
stable salary. Ukraine's exit from the crisis and socio-
economic development of the country are primarily 
related to the development of production. The solution 
to this problem depends on the level of interest of the 
employee in high-performance work on the basis of 
ensuring proper payments from the actual personal 
labor contribution of the employee, the share of his 
participation in the property, as well as the final results 
of the enterprise's work (Kabachenko, 2015). 

Effective management of a modern enterprise is 
impossible without taking into account one of the 
most valuable resources of today – a person who acts 
as a multifaceted subject of economic relations, which 
not only directly creates added value of products, but 
is also an engine of progress realized due to unlimited 
labor potential. After all, it is a person who, with 
the help of his own knowledge, skills and abilities,  
generates and implements ideas that allow optimizing 
and improving various aspects of management 
(production, management, marketing, etc.) for which 
he must be guaranteed to receive proper payment 
(Laptev, 2015).

Employee payments are one of the significant 
components of the company 's costs. However, the 
accounting of employee benefits is imperfect and is 

This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0



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in the process of reforming. Scientists unanimously 
express the opinion about identifying the essence 
of employee benefits in their functions, but their  
number and content are the subject of discussion, 
which leads to an ambiguous interpretation of the 
composition of employee benefits at different levels of 
their management (Zubilevych, Veyuk, 2014).

Payments to employees are the most important 
component of all expenses of the enterprise, and  
their accounting is one of the most important aspects  
of the accounting process. The introduction of 
innovations in wages at enterprises allows more  
efficient use of human resources and adapt them to 
changes in the enterprise management system. With 
the development of the market economy at agricultural 
enterprises, there are a number of problems of various 
nature, in particular, in the organization of accounting 
for employee benefits.

Improving the methodology, methodology and  
organization of accounting for payments to  
employees at agricultural enterprises is of fundamental 
importance for facilitating control over the socio-
economic return of all types of resources, impro- 
ving the quality indicators of their activities.

In normative documents on regulation and  
accounting at enterprises of Ukraine, the concept of 
"employee payments" is absent. In addition, there are 
not sufficient studies of Ukrainian scientists devoted  
to the deep and justified disclosure of the definition  
of this concept.

As a result of the study of the problems of  
improving the accounting support for the management 
of payments to employees of the enterprise, 
O.F. Yarmolyuk defines "payments to employees as 
compensation payments for services rendered by 
employees accumulated as part of long-term and 
current obligations and provisions of the enterprise" 
(Yarmolyuk, 2014).

The essence of the concept of "employee payments" 
by scientists is considered as a category of accounting. 
It should be noted that the definition of the concept 
of "employee benefits" given in IAS 19 "Employee 

Benefits" is limited and does not fully reflect its  
essence and objects of accounting.

It should be noted that the clear definition of the 
concept of "employee payments" of IAS 26 does not 
provide, only details what payments are included in 
which group, and defines individual terms. Payments  
to employees, in accordance with P(C)BU 26, are 
divided into five groups (Figure 1) (Zhydeeva,  
Starodub, 2017).   

It is proved that payments to employees are part  
of the income of an individual received from the 
employer, a set of accounting objects related to their 
current and future income, which the employee  
receives (will receive) at the expense of the enterprise 
directly or through a third party, as well as the  
obligation of the enterprise to transfer primary and 
secondary equity instruments to the employee (Len, 
Stupun, 2015).

In particular, employee benefits include wages, 
which in turn consist of basic wages, additional 
wages (payments for unworked time, participation in  
profits, etc.), other incentive and compensation 
payments, the composition of which is determined  
by the Instruction on Wage Statistics (Ukraine, 2004).

2. The economic essence  
of payments for employee benefits

Employee payments are one of the essential 
components of the total costs of any enterprise and one 
of the complex objects of accounting, which include 
a fairly significant list of payments, each of which has 
its own characteristics of displaying both in accounting 
and in the external reporting of the enterprise. The level 
of payments to employees and their structure are also of 
great social importance and affect not only the current, 
but also the future performance of the enterprise. In 
this regard, the issues of understanding the essence of 
payments to employees, their structure and accounting  
are relevant, which is a rather important basis for 
justifying their reflection in accounting accounts and  
in financial statements (Len, Stupun, 2015).

Employee benefits

Current 
payments 

(mandatory 
payment within 
12 months after 
the end of the 

execution 
period)

Payments in 
case of 

dismissal
Payments after 
the end of work

Other
long-term
payments

Payments
by equity

instruments of
the enterprise

Figure 1. Structure of payments to employees of the enterprise in accordance with PSB 26 "Employee Benefits"



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In our opinion, having examined the economic 

essence of the meaning of "employee payments", 
we can note that employee benefits are all types of 
compensations and additional benefits provided 
and paid by the enterprise for the work performed 
by the employee and services provided under the  
employment contract.

Remuneration is the basic category in the system of 
employee benefits. It is the signal indicator in which  
all the contradictions of society, all its achievements  
and miscalculations are reflected, therefore, it is 
necessary to approach the solution of legal issues 
of remuneration through the study of objective real  
social relations.

Since wages are a complex economic category and 
are an element of social and labor relations between  
the state, employer and employee, that is why it is the 
object of many scientific studies.

Modern theorists quite diversely substantiate 
various aspects of the essence of remuneration. In the  
conditions of the administrative-command economy  
in what was called socialist, it was argued that the 
worker does not sell his labor force, and wages are 
a form of division by labor. This understanding  
generally corresponded to the existing ideology, but  
was not confirmed in practice (Kostyshyna, 2015). 

Wages are defined as the main form of distribution  
of the personal consumption fund between employees 
in accordance with their shares of participation in 
the total social labor, which establishes the state in 
the planned manner in accordance with the quantity 
and quality of labor; as expressed in money, the share 
of workers and employees in the fund of individual 
consumption in national income, which is the main 
form of the necessary product in its distribution and 
as the amount of monetary remuneration paid to 
the employee for the performance of a certain task of  

the amount of work or the performance of his official 
duties for some time (Kolot, 1998).

In today 's conditions, wages are the main tool for 
implementing social protection of employees. The 
effectiveness of work and results depend on its rational 
organization, and therefore the development of the 
country as a whole. Scientists reasonably argue that 
today wages have actually become one of the options 
for social assistance, which depends little on the results 
of work.

In accordance with the law "On remuneration" – 
a large platform – it is a wine, in a large whirlpool,  
which is with a hard work (Law of Ukraine, 1995).

Believes that the economic basis for the formation  
of wages as the price of labor can be reflected 
schematically (Figure 2).

From the point of view of an employee, wages are 
the main part of his labor income, which he receives  
as a result of the realization of the ability to work 
and which should ensure the objectively necessary 
reproduction of the labor force.

The labor market of the labor force of employees 
is expressed in the form of goods. Like any other 
commodity, labor has a consumer value. The consumer 
value of labor is its ability to create additional value, 
to be a source of capital increase. The cost of labor 
is determined by the amount of vital benefits that  
provide objectively necessary reproduction of labor 
force (Kostyshyna, 2015). 

From the entrepreneur's point of view, wages are 
an element of production costs, and at the same 
time the main factor in ensuring the material interest  
of employees in achieving high final labor results. 

According to Ilyash O.I. and Hrynkevych S.S. in  
their scientific research, the effectiveness of work is to 
some extent determined by the current wage system. 
Wages as a socio-economic category, on the one hand, 

Employer

Marginal labor costs 
that guarantee the 
necessary profit

Cost of labor

Demand for labor

Worker

The cost of living 
necessary to meet the 

needs of the 
employee and his 

family

Labor market (labor)

Demand for labor

The price of labor

Figure 2. Economic basis for the formation of wages as the price of labor



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are the main source of monetary income of workers,  
so its value largely characterizes the level of well-being 
of all members of society. 

On the other hand, its correct organization is of  
interest to workers to increase the efficiency of 
production, and also affects the pace and scale of socio-
economic development of the country (Grishnova, 
2009).

The variety of salary definitions is due to the  
following reasons:
– uncertainty of the goods purchased and sold in the 
labor market; 
– transitional state of remuneration in a transforma-
tional economy, where there are new elements 
characteristic of the market system of remuneration, 
and the old ones that have moved from the command 
and administrative system; 
– difference in methodological approaches to the 
analysis of the system of relations, expressed by the 
category of remuneration; 
– different levels of scientific abstraction to the  
definition of the system of economic relations  
expressed in this category, caused by certain research 
goals (Kostishina, 2009). 

When determining wages as the price of labor, it 
is necessary to take into account a single measure of 
remuneration, the criterion of which is the real cost 
of living of the employee and his family. As the price 
of labor, wages are formed in the labor market and  
are external, relative to the enterprise. As an element 
of the production price, the share in the value created  
by the enterprise should determine wages.

In the process of forming a share of wages, it is 
necessary not to allow compensation for excess labor 
costs, to ensure its increase only due to an increase  
in the number of products produced, more efficient  
use of resources, and an increase in labor productivity.

The essence of remuneration is determined by the 
theoretical and conceptual principles, which consist:  
in the formation of relations of the sphere of  
production and exchange of labor, while wages should 
provide vital benefits for the reproduction of labor  
and the resistance of production activities that 
the worker receives in exchange for his work  
(Lisetska, 2016).

At the present stage, wages are, first of all, the 
motivation and material incentive of the worker to 
reproduce a quality product with his work and the 
interest of employees in achieving high final results.

The amount of wages should depend on the  
following criteria: professional and business 
qualities, complexity of work, effectiveness, 
initiative, responsibility, organizational and executive  
competence, urgency, etc. Also, wages express the 
market value of the use of hired labor, therefore, it 
is an instrument of the labor market, which acts as 
the price at which an employee sells his labor force. 
Thus, remuneration should be considered as a key  
component of the cost of labor, which has peculiar 
features and depends on the employee's labor 
contribution and performs important functions in the 
development of society (Lisetska, 2016).

It should also be noted that wages have always  
acted as the greatest active motivator for the  
activation and use of human potential. At the same  
time, the use of the existing qualification and creative 
potential of employees should depend entirely on the 
scientific validity and choice of methods for linking 
wages with qualifications, the content of the work 
performed, the results of work and the conditions in 
which it is carried out. 

When determining wages as the price of labor, it 
is necessary to take into account a single measure of 
remuneration, the criterion of which is the real cost 
of living of the employee and his family. As the price 
of labor, wages are formed in the labor market and are 
external, relative to the enterprise (Ostrowerkha, 2014).

3. Forms and types of employee benefits
With the development of society, increasing  

economic development, more and more attention  
is paid to the issue and directly the mechanism of 
motivation to work. For, as you know, work is a  
complex and multidimensional phenomenon that  
plays an extremely important role in the life of society 
and each individual and in a broad sense is inalienable 
from human life.

The issue of pay is part of the employment 
relationship. They include the obligations of employers 

Reflects the relationship between the employer and the employee

Labor market element
Production cost element

Wage
The bulk of the employee's income Monetary reward for work

Figure 3. Components of the "salary" category



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and their associations on remuneration, the provision  
of material compensation payments in various forms 
and the organization of this process.

According to the essence of wages, the main  
condition for building a rational system of remune-
ration is the harmonization of its forms and systems 
with the peculiarities of the enterprise, the specifics of 
production technology, the organization of manage-
ment and maintenance (Guryanov, Kostin, 1973).

As stated in the Law of Ukraine "On Remuneration" – 
wages have the following components:
– basic salary – remuneration for the work performed  
in accordance with established labor standards;
– additional wages – remuneration for work, above  
the established norm, for labor success and ingenuity 
and for special working conditions;
– other incentive and compensation payments – 
remuneration based on the results of work for the 
year, bonuses under special systems and provisions, 
compensation and other monetary and material 
payments (Law of Ukraine, 1995).

A more detailed structure of the components  
of wages can be shown in Figure 4.

Analyzing this figure, we propose to add the  
following types of payments to the category "Other 
payments", since they are absent in the national 
regulatory framework but are regulated in IAS 

19 additional paid leave for seniority and additional 
one-time payments for long-term disability.

The proposed types (structure) of payments are 
regulated by IAS 19, but are absent from the national 
regulatory framework.

With the development of the economy, Ukraine wants 
to compare with countries with a developed market 
economy, which widely use completely different forms 
and systems of remuneration, a wide variety of systems 
of material incentives for workers and stimulating  
them to increase performance.

Therefore, the study of the issue, forms and systems 
of remuneration in Ukraine and foreign countries,  
their comparison, research of positive and negative 
aspects in the use of a particular system are quite  
relevant. To use the most effective wage system, it 
is necessary to investigate both domestic payment  
systems and the experience of foreign countries 
(Bozhok, Balanovych, 2015).

The form of remuneration establishes the  
dependence of the amount of remuneration of the 
employee on the results of labor (work performed) 
achieved by him for a certain period of time. The wage 
system is a way to implement the appropriate form of 
remuneration, specially developed and enshrined in 
regulatory documents, and establishes the procedure 
for remuneration of employees.

Wage

Basic salary Additional salary Other incentive and 
compensation payments

Salary accrued 
for the work 

done 

Amounts of interest or 
commission accruals

Author's fee 

Allowances and 
surcharges to tariff 
rates and salaries

Premiums for 
production results

Rewards for seniority, 
work experience

Pay for work on 
weekends and holidays

Other payments

Payment of downtime 
through no fault 
of the employee

Rewards based
on the results of work 

for the year

Bonuses, one-time 
incentives 

Material assistance

The amount of labor 
and social benefits 

provided by the 
enterprise

to employees
additional paid leave 

for seniority

additional lump sum 
payments for

long-term disability

Figure 4. Structure of wages at the enterprise



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The system of remuneration is the organizational 

and economic mechanism of the relationship  
between indicators characterizing the measure (norm) 
of labor and the degree of its payment in accordance 
with the actual achieved (relative to the norms) of  
labor results, tariff conditions of remuneration and the 
price of labor agreed between the employee and the 
employer. 

At the enterprise, remuneration systems are 
established in a collective agreement in compliance 
with all legislative norms and guarantees. Transferring 
workers to another pay system is a change in essential 
working conditions and requires warning workers in 
two months. Practice has developed two main systems 
that are used both in "pure" form and with different 
modifications – timely and piecework systems of 
remuneration (Slepyan, Belova, 2016). 

The most important warehouses of the organization 
of payment for the price of goods, tariffs, tariffs for  
the production of payments, the development of  
forms and systems of payment for prices.

Thus, in the context of the remuneration system, 
N.B. Bolotin and G.I. Chanyshev understand the 
method of calculating the amount of remuneration, 
proper payment to employees in accordance with 
labor costs and, in some cases, their results (Bolotina, 
Chanysheva, 2000). 

O.M. Yaroshenko and S.M. Prylypko give a broader 
definition, pointing out that the wage system is a  
certain relationship between indicators characterizing 
the measure (norm) of labor and the degree of its 
payment within and above the labor rate, which 
guarantee the employee's receipt of wages in  
accordance with the actual achieved labor results 
(relative to the norm) and the price of his labor force 
agreed between the employee and the employer 
(Prylypko, Yaroshenko, 2011).

Kabachenko M.O. noted that the introduction of 
a single tariff system into the practice of organizing 
remuneration was one of the central aspects of the 
wage reform and meant the transition to intersectoral, 
intercategory and interprofessional ordering of tariff 
conditions of remuneration, as well as at enterprises  
and institutions of various forms of ownership 
(Kabachenko, 2015).

In Ukraine, the following main two forms of 
remuneration are most often used, which, in turn, are 
divided into systems.

Let's display the data of the form and wage system in 
Figure 5.

Thus, in the piece form of remuneration, payment 
is made for the quantity and quality of manufactured 
products or the amount of work performed. In this 
case, the measure of labor is the amount of production 
produced.

The piecework system can be individual or collective, 
depending on the method of organization of labor.  

An individual piecework system is used at the  
production site, where a clear accounting of the 
labor of individual workers is provided. Collective  
piecework is established according to the overall 
results of the brigade's work. At the same time, the  
distribution of earnings is carried out using the 
coefficient of labor participation (KTU). 

Under a direct piecework system, the amount of  
wages depends on the performance of each employee, 
and the indirect piecework system is used for the 
material remuneration of auxiliary workers engaged 
in servicing the main pieceworkers. At the same time, 
their earnings depend on the results of the work of the 
pieceworkers they serve (Bolotina, Chanysheva, 2000).

We also draw attention to the fact that the piece form 
of remuneration is divided into piecework-premium 
and piece-progressive. In the piece-premium system, 
remuneration, the employee, in addition to earnings 
under a direct piece system, is charged a premium for 
the performance (or over performance) of certain 
quantitative and qualitative indicators. The amount 
of such a premium is set by the management with 
the consent of the trade union as a percentage of 
tariff earnings determined at piece rates (Bozhok, 
Balanovych, 2015).

With a piece-progressive system of remuneration, 
the employee's earnings are determined by the 
implementation of the production rate, as well as with 
direct piecework payment, that is, at established rates. 
When exceeding the established norm, surcharges 
to the main piece rate progressively increase. Accrual 
of progressive surcharges is carried out based on the  
results of monthly work. Such a system of  
remuneration is usually used in crucial areas, 
which is a "bottleneck", in case of a special need for  
material incentives for workers in the growth of 
production. The disadvantage of this system is that  
an employee's earnings are growing faster than 
productivity (Bozhok, Balanovych, 2015).

Forms and systems 
of remuneration

Piecework

Direct

Piece-premium 
system; Piece-

progressive system 

Hourly

Indirect

Hourly premium system; 
Hourly progresфsive system

Figure 5. Forms and systems of remuneration



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The main advantages of piecework wages are that,  

as already noted, it provides a direct link between 
wages and its quantitative result and, under  
appropriate conditions, seems fair. 

It is also important that the calculation of earnings 
is methodically simple and understandable for each 
employee (Fisunenko, Boychenko, 2017).

At the same time, the piece form of remuneration 
has certain disadvantages that manifest themselves  
in different ways depending on the specific conditions. 

These include:
– it is possible to weaken attention to the quality of 
products by the performers of technological operations 
in order to direct all efforts to the quantitative aspect  
of the work;
– temptation of violation of optimal modes of 
technological processes, their excessive intensification, 
non-compliance with the rules of maintenance of 
machines, safety, which leads to additional costs;
– complex and time-consuming work on labor  
rationing and setting the rate of production and 
piece rates, dissatisfaction of workers with their  
level (Greschak, Grebeshkova, Kotsyuba, 2001).

Consequently, piecework remuneration requires 
enhanced observance of the regimes of the techno-
logical process, the regulations for its maintenance  
and product quality (Fisunenko, Boychenko, 2017).

Piecework remuneration is rational to apply under  
the following conditions:
– a clear quantitative measurement of labor results 
and their dependence on one or more employees 
(brigades);
– employees have the opportunity to increase  
production or the amount of work performed 
(products);
– there is an accurate accounting of the work of each 
performer;
– there is a need at a certain site to stimulate an  
increase in labor productivity or an increase in the 
volume of production;
– at the proper level, the rationing of labor is organized 
(Murashko, 2008). 

These conditions are inherent primarily in processes 
where manual labor plays a significant role in their 
implementation. These are, for example, manual 
assembly work (not in the system of regulated 
conveyors), processing parts at individual machine 
workplaces, performing other mass works (cargo 
movement, extraction of raw materials), etc. With an 
increase in the level of mechanization and automation 
of production, machine regulation of the production 
process and with the corresponding change in the 
functions of workers, the scope of traditional piecework 
wages narrows. However, it always remains an  
effective stimulating tool in a direct or modified  
form in the specific conditions of the enterprise's 
divisions (Fisunenko, Boychenko, 2017).

But, unfortunately, not all enterprises carry out 
accruals and remuneration for the performance of  
work by employees that require additional physical 
activity (as noted above, these are manual assembly 
works; securing cargo, for safe transportation; 
movement of cargo, etc.).

Please note that the remuneration of such types of 
work in European countries is paid additionally and  
is controlled at the legislative level. In Ukraine, it is 
legally provided, but not a mandatory requirement, 
but only has as a recommendatory nature and can 
be applied at enterprises at the request of the head or 
in case of indication in the collective agreement. In 
our opinion, it would be advisable to introduce such 
methods of surcharges on an ongoing basis, this will 
make it possible to improve labor productivity and  
the quality of work by employees. 

Under the direct hourly wage system, the amount 
of earnings is determined depending on the tariff rate  
of the employee and the amount of time worked  
by him for a certain period of time (Bozhok,  
Balanovych, 2015).

The tariff system of remuneration includes:
a) tariff grid – coefficients that are assigned to  
employees depending on qualifications;
b) tariff rates – amounts accrued for a certain period 
of time (hour, day) to employees of the relevant 
qualification (category).

The tariff system of remuneration is used to  
distribute works depending on their complexity, 
and workers – depending on their qualifications  
and responsibility for the categories of the tariff grid. 
It is the basis for the formation and differentiation 
of wages. The main elements of the tariff system are 
tariff-qualification certificates of works and professions 
of workers, qualification certificates of positions of 
managers, specialists and employees, tariff grids and 
rates and schemes of salaries, or a single tariff grid. In 
modern economic conditions, each enterprise can 
independently develop a tariff system, adhering to  
state guarantors and the requirements of general, 
sectoral, regional tariff agreements in accordance with 
the current legislation. 

According to the hourly-premium wage system, 
the employee's earnings are charged not only for the 
time worked, but also for the achievement of certain 
quantitative and qualitative indicators. Quantitative 
indicators include overtime, unscheduled and over-
planned tasks, and qualitative – improving the quality 
of a certain type of product, saving raw  
materials, materials, compliance with technological 
requirements, etc.

The hourly-progressive system is based on wages  
for the implementation of regulatory tasks. That is,  
each employee performs a specific amount of work  
(in pieces, norm-hours), and the result of these works  
is taken into account when calculating tariff earnings. 



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The collective-hourly wage system is based on 
a collective payroll fund earned by brigade members 
jointly, depending on the amount of time worked, 
certain premium indicators, and then, using a specific 
method, is distributed among employees (Bozhok, 
Balanovych, 2015).

At the enterprises, local regulations on KTU are 
adopted, specific indicators are established, the 
procedure for calculating earnings. The qualification of 
the employee is also taken into account. The amount  
of wages may not be lower than the established 
minimum wage.

Such a system as chord pay is also used – remune-
ration for the performance of a complex of works 
(construction object). The final calculation is carried 
out according to the chord outfit after the adoption of 
the entire amount of work, which is the act.

The formation of a methodology for analyzing the 
effectiveness of the remuneration system should be 
carried out on the basis of a number of principles 
that make it possible to consider the wage system as 
a comprehensive system of interrelated indicators.  
The main principles for assessing the effectiveness  
of the remuneration system are: the principle of 
consistency; the principle of complexity; the principle 
of consistency; the principle of continuous variability; 
the principle of stable inequality; the principle of 
sufficiency; principle of conformity 

Foreign experience testifies to the predominant use 
of timely remuneration in its various modifications: 
hourly (clean), hourly with collective premium,  
hourly with individual bonuses. The main condition  
for paying salaries is the full amount of work  
calculated on the basis of progressive labor cost 
standards.

The use of a systematic approach made it possible 
to determine that an effective wage system has a close 
relationship with the categories of competitiveness: 
competitiveness of the workforce, products,  
enterprises, industries, countries, global competi-
tiveness (Slepyan, Belova, 2016).

The priority criteria for the development of the 
efficiency of the remuneration system were the intensity 
of competition and ensuring the necessary legislative, 
social, institutional conditions for its development. 

Factors of positive (negative) impact on these 
conditions were attributed to the indicator of  
stimulating (restraining) impact on the formation 
of the efficiency of the wage system (Chervinska,  
Malaya, 2009). 

The result of the study of remuneration systems  
is the provision of recommendations on the use of 

an effective remuneration system at enterprises of  
Ukraine, namely:
– respect for the constitutional rights and freedoms of 
man to work, which will enable wages to play the role 
that he must play in the realization of social human 
rights and, above all, his right to work;
– ensuring an increase in the price of labor for 
the purpose of its self-sufficient and high-quality 
reproduction due to democratic regulation, taking 
into account the qualifications of the employee, the 
conditions and complexity of labor, the comparison  
of supply and demand in the labor market;
– creation of an effective mechanism for the  
formation of the minimum wage;

Ensuring individualization in the organization of 
wages, strengthening its dependence on the level  
of labor efficiency, professionalism, qualifications, 
complexity, working conditions, which will increase 
labor activity, increase motivation for effective work;
– application of modern motivational and stimulating 
mechanisms of high-performance work, in particular, 
determining the size of wages through the assessment 
of personal contribution and business qualities of the 
employee;
– creation of an optimal mechanism for the formation 
and regulation of remuneration funds at enterprises of 
various industries and forms of ownership, depending 
on the results of production and financial and  
economic activities (Slepyan, Belova, 2016).

4. Conclusions
Thus, if the remuneration system is applied  

rationally, complying with all legislative norms,  
it will contribute to the effective creation of 
a motivational mechanism and improve wages, 
and this in turn increases the competitiveness of  
workers, products, enterprises and the economy of 
Ukraine as a whole.

Thus, wage research occupies an important place 
among modern problems in society. Wages have  
been the subject of research by economists for years. 
It is especially relevant under modern conditions 
of development of the Ukrainian economy due to 
increased competition, globalization of business and 
increased entrepreneurial risks. Today, the economy 
is focused on ensuring the material interest of  
workers and on increasing labor efficiency. Social and 
economic life developed, there was a division of labor 
of varying complexity and this led to the emergence  
and development of a system of accounting for  
payments for employee benefits.



Three Seas Economic Journal

96

Vol. 3 No. 2, 2022

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