CONCEPT OF WAGE & SALARY

ADMINISTRATION
By,
Amit Wani
Roll No.:- 58
Definition of Wages & Salary
• Base wages and salaries are defined as the
hourly, weekly and monthly pay that employees
receive for their work in and Organization
Principles Governing Compensation
Administration
• Maintaining Equity
• Maintaining Competitiveness
• Matching Employee Expectations
• Reinforcing positive employee behavior
• Eliminating any discrepancies
• Devising a system that is most efficient
• Optimization of management and employee
interests
• Maintaining good IR and harmony
Purpose of Wage & Salary
• Attracting talented resources
• Retaining and motivating employees
• Financial Management
• Legal Requirements
Concepts of Different Wages
MINIMUM WAGES
• It is amount of remuneration, which is just sufficient
to enable an average worker to fulfill all his
obligations.
• It is applicable to workers across the country and is
governed by the Minimum Wages Act 1948
• The law states that an employer who cannot pay the
minimum wage has no right to engage labour and no
justification to run a firm
• The current minimum wage in India is Rs. 66 per
day to all the workers in scheduled employment
• It is revised every 5 yrs
Concepts of Different Wages
FAIR WAGES
• Workers performing work of equal skills, difficulty
or unpleasantness should receive equal or fair wages
• The basis of fair wage is the minimum wage, within
the capacity of the organization to pay
• Fair wage should be related to the productivity of
the labour
• It should match the prevailing rates of wages in the
same or neighboring localities
• It should reflect the level of national income and its
distribution
Concepts of Different Wages
LIVING WAGES
• Living wages should enable the male earner to
provide for himself and his family, not only the
bare essentials of food, clothing and shelter, but
also a measure of frugal comfort including:
▫ Education for the children
▫ Protection against ill-health
▫ Requirements of essential social needs
▫ A Measure of insurance against the more
important misfortunes including old age