When you work, you earn to be paid and your pay could be anything which has financial value - however, this usually consists of money.
Your pay may be calculated on time basis so that you receive either wages on an hourly rate or a monthly salary. Your pay may also be wholly or partly based on your performance and results. The amount and the basis of pay should be recorded in the employment contract.
Minimum wages and salaries are stipulated in the sectoral collective agreements for the various groups of workers, and for the different levels of qualifications and responsibilities. Your pay should not be lower than the relevant pay level defined by your sectoral collective agreement, but it can, of course, be higher. The employer and the employee may further agree upon individual additional pay for reasons of the special skills, expertise and achievements of the employee.
It is always advisable to check the collective agreement which has been negotiated for your field of employment before you agree to any wages or salary. If you are a member of a trade union, you will receive help and information from the union on an appropriate level of pay.
Wages and salaries are raised according to the collective agreement, but the employer may, of course, increase any pay to a level which is above that stated in a collective agreement. Pay can only be lowered with the consent of the employee, although it cannot be lowered to a level which is less than the minimum as stated in the collective agreement.
If there is no collective agreement in an employee’s particular sector of work and if pay has not been agreed upon, the employee must receive the prevailing and reasonable pay for the work which has been done.