Wages and Salary Administration

Dr. Anil Mehta

control of compensation costs and other related areas. supplementing payments. establishing rules for administrating wage payments. incentives. survey of wages and salaries analysis. development and maintenance of wage structure. . wage changes and adjustments. profit sharing.…refers to the establishment of implementation of sound policy and practices of employee compensation . It includes such areas as job evaluation.

Purposes •Eliminates inequalities •Minimizes chances of favoritism •Establishes sequences of jobs and lines of promotions •Increases employees motivation and morale •To plan and control labor costs •To explain basis of wage payment •To reduce frustration and grievances • to attract qualifies personnel .

Principles •Sufficiently flexible •Based on job evaluation •Consistent with overall organizational plans and programs •In conformity with the social and economic objectives of the country •Responsive to the changing local and national conditions •Simplicity .

.Components Of Employee Remuneration Remuneration financial Hourly and Monthly Rated Wages Salaries NF Fringe Benefits Perquisites Job Contents Incentives PF Company car Challenging Individual plans Gratuity Club Job Responsibilities Group plans Medical care Membership Recognition Accident relief Paid holidays growth Health and Furnished house prospects Group Stock option Insurance etc Schemes etc.

Influencing factors of Remuneration Remuneration External Labour Market Cost of living Labour Unions Government Legislations Society Economy Internal Business Strategy Job evaluation and performance appraisal The Employee .

Devising a Remuneration Plan Job Description Job Evaluation Job Hierarchy Pay Survey Pricing Job .

Challenges of Remuneration Skill based pay Employee participation Remuneration Salary reviews Comparable worth Pay Secrecy .

Concepts of Wages Minimum Wages Fair Wages Living Wages .

Wage Policy in India • Payment of Wages Act 1936 • Minimum wages Act 1936 • Industrial Dispute Act 1947 • Equal Remuneration Act 1976 • Payment of Bonus Act 1965 • Wage Boards • Pay Commission .

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