bonus
Premium ( Latin praemium 'award' , 'reward', 'price') is a general term for any monetary or non-financial incentive with which success or performance is to be rewarded or is required in return for a performance.
General
The content of the term “premium” depends on the respective specialist area and therefore varies. Particular areas of expertise are banking , the stock exchange , lottery , human resources , sports , government subsidies and insurance .
Banking
The banking industry knows the concept of premium in many different forms.
- With premium savings , the savings premium is an amount of money that is distributed in addition to interest . The bonus savings introduced by the Volks- and Raiffeisenbanken as well as the savings banks - also known as profit saving - is a form of savings in which the saver pays in a certain savings amount and a draw amount within a period. The draw shall be paid into a bonus fund, after deduction of the Betting and Lotteries control by Los shall be distributed to the savers. Premium savings (bonus savings or supplementary savings ) are a special form of savings offered by credit institutions in which the saver concludes a long-term savings contract, regularly pays in savings and receives a premium as additional interest at the end of the term .
- Bonus bond is another word for the lottery bond , which is not a standard bond.
- With the interest rate cap , the seller (usually a bank) receives a one-off premium upon conclusion of the contract, which depends on the amount of the cap, the current market interest rate , the term and the volatility of the reference interest rate . He hedges an interest rate risk .
- The risk premium is generally the compensation for a financial risk assumed by the risk taker . Especially when it comes to capital investments , risk-averse investors have to build a risk premium into their expectations of the real interest rate if there is uncertainty about the development of inflation . For example, the expected equilibrium return on a share is made up of the risk-free base rate and the risk premium. In foreign trade theory , the risk premium is the difference between the expected return on an investment in foreign currency and the return on a comparable investment in domestic currency.
Stock exchange
On the stock exchange, the writer (buyer) of an option must pay the seller ( issuer ) a premium ("option premium") when the contract is concluded in order to be able to exercise his rights under the option. The option premium is the price that the long position (writer) has to pay to the short position .
lottery
As an incentive, lotteries and competitions also distribute prizes in special raffles or prize drawings in addition to the regular chances to win.
marketing
In marketing , bonuses can be used to promote sales . Customers can as a "call premium" the (free) product adding a product , a gift or a coupon will receive.
The award of rewards is also an essential part of many bonus systems such as Miles & More and Payback . There the customer can receive rewards for the bonus points collected .
human Resource
In human resources, there is a bonus wage that is paid by the employer for particularly outstanding work performed by the employee in addition to the wages regulated in the employment contract . It can be paid for quantitative (“volume bonus”) or qualitative additional services (“quality bonus”). The piecework wage is a quantity bonus in which there is a strict link between the wage level and the quantity output. The volume bonus, on the other hand, is granted if the work flow consists of too high a proportion of working hours that cannot be influenced, but this should not affect the bonus. Quality awards are aimed at improving product quality / service quality and thus reducing or avoiding rejects , B-goods or rework .
In the company suggestion scheme , employee suggestions for improvement are rewarded with bonuses. According to the Federal Labor Court (BAG), the employer must award a prize for improvement suggestions that have been used , provided the employee has performed a special service. According to this judgment, a special performance of the employee, in particular a performance of a creative nature that goes beyond the usual work performance and represents a real special performance, is to be additionally remunerated in good faith , even without a special agreement , if it brings the employer a not inconsiderable advantage.
In the public sector there is an authorization in § 42a para. 1 BBesG , performance bonuses and incentive payments to cover outstanding special payments to civil servants , judges (the office do not exercise), soldiers and prosecutors to grant. The performance bonus is a one-off payment and is used to recognize outstanding, special performance; it should be closely related to the performance ( Section 4 BLBV ).
Almost without exception, the premium payments to employees are not pensionable and are therefore not taken into account in the pension calculations.
Sports
In sport - mostly in professional sport - a premium is a certain sum of money or a material prize that is offered by the organizer as a reward for winning a sports competition ("victory bonus"). The winning bonus for a single game is wages , while bonuses for the entire season (e.g. winning the championship ) are a one-off payment. If prizes are paid out for several final positions in a competition, the sums to be won are staggered for each position according to a scheme established by the organizer.
State subsidies
State subsidies are sometimes colloquially referred to as a premium and legally as an allowance . They serve economic or tax policy in the national and European framework .
Among many others there is or was the scrapping bonus for inland vessels , employee savings allowance according to Section 1 of the Fifth Wealth Education Act , investment allowance , child benefit , bonus for the closure of a mill , allowance for the Riester pension , scrapping bonus (in Germany: environmental bonus ) or the housing construction bonus according to § 1 Housing Construction Premium Act (WoPG).
In agriculture should be mentioned the Abschlachtungsprämie, agricultural premium set-aside premium , dairy premium , suckler cow, ewe premium, slaughter premium, special premium for male bovine animals, starch potato or tobacco premium premium (see also: Common Agricultural Policy ).
Insurance
In insurance, the term premium is important for the following issues:
- The insurance premium is the price that a policyholder for the insurance according to the insurance contract to the insurer has to pay. Insurance protection is the assumption of certain risks ( risk transfer ) by the insurer. According to § 1 VVG , the policyholder is obliged to make the agreed payment (premium) to the insurer. Paying the insurance premium is very important. If the insured event occurs and the policyholder is in arrears with the payment of the premium , the insurer is not obliged to pay according to Section 38 (2) VVG. Regular premium payments from all policyholders are intended to ensure that the amount of money necessary to compensate for the damage is available in the event of an insured event.
- The premium risk is the risk that the actual losses from the insurance business in the current financial year will develop worse than the expected loss ratios .
- From an actuarial point of view, the risk premium is an imputed component of the total premium (gross premium) that is set for the pure assumption of risk:
Nettorisikoprämie + Sicherheitszuschlag = Risikoprämie + Betriebskostenzuschlag - Abschlag für Kapitalerträge aus Kapitalanlagen + Gewinnzuschlag + Versicherungsteuer = Bruttoprämie
The risk premium consists of the net risk premium as the expected value of the claims expenditure, the gross risk premium contains the safety premium , which is intended to absorb unexpectedly high losses.
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Individual evidence
- ↑ Springer Fachmedien Wiesbaden (ed.), Compact Lexicon Economy , 2014, p. 102
- ↑ Alexander Klos / Martin Weber, Equity Premium Puzzle , 2000, p. 3
- ↑ Springer Fachmedien Wiesbaden (ed.), Gabler Volkswirtschafts-Lexikon , 1997, p. 513
- ↑ Springer Fachmedien Wiesbaden (ed.), Gabler Volkswirtschafts-Lexikon , 1997, p. 570
- ↑ Springer Fachmedien Wiesbaden (ed.), Gabler Volkswirtschafts-Lexikon , 1997, p. 931
- ↑ Jürgen Krumnow / Ludwig Gramlich / Thomas A. Lange / Thomas M. Dewner (eds.), Gabler Bank-Lexikon: Bank - Börse - Financing , 2002, p. 989
- ↑ Springer Fachmedien Wiesbaden (ed.), Compact Lexicon Economy , 2014, p. 438 f.
- ↑ Springer Fachmedien Wiesbaden (ed.), Compact Lexicon Economy , 2014, p. 355
- ^ Fritz Bisani, Personalführung , 1977, p. 139
- ^ Fritz Bisani, Personalführung , 1977, p. 140
- ↑ Verlag Dr. Th. Gabler (Ed.), Gablers Wirtschafts-Lexikon , Volume 4, 1984, p. 782
- ^ Federal Labor Court, judgment of April 30, 1965, Az .: 3 AZR 291/63 = BAGE 17, 151
- ↑ Christian Rolfs, Sport and Social Insurance , 2009, p. 25
- ↑ Regulation (EEC) No. 1101/89 of the Council of April 27, 1989 on structural adjustment in inland waterway transport
- ↑ Diethildis Wanke, On-Farm Management as a Concept for In-Situ Conservation of the Diversity of Farm Animal Breeds , 2008, p. 122
- ↑ Springer Fachmedien Wiesbaden (ed.), Compact Lexicon Economy , 2014, p. 439
- ↑ Dieter Farny / Elmar Helten / Peter Koch / Reimer Schmidt (eds.), Handwortbuch der Versicherung HdV , 1988, p. 525
- ↑ Springer Fachmedien Wiesbaden (ed.), Compact Lexicon Economy , 2014, p. 585
- ↑ Dieter Farny / Elmar Helten / Peter Koch / Reimer Schmidt (eds.), Handwortbuch der Versicherung HdV , 1988, p. 525 f.
