Wage and

Salary
Administration
Wage & Salary Administration
 An integral part of management.
 Systematic approach to provide
monetary values to employees.
 It is Administration of Employee
Compensation.
 Aims to establish and maintain an
equitable wage and salary structure.
Definition
 According to D.S. Beach-
“It refers to the establishment and
implementation of sound policies and practices
of employee compensation.”

 According to Bewath and Reins-

“It is essentially the application of a systematic
approach to the problem of ensuring that
employees are paid in a logical, equitable and
fair manner”
Wage Salary & Compensation

Wages Salary

Compensation
Wages

 Paid to Blue Collared employees.

 Daily, Weekly or Monthly work paid.

 Forjobs which can be measured to some

extent in terms of money’s worth.
Salary

 Paid to White Collared employees.

 Paid monthly, or bimonthly.

 Contribution of work can not be easily

measured.
Compensation

 Compensation is a comparative term.

 Itincludes wage and all other allowances

and benefits like allowances, leave
facilities, housing, travel and non-cost
such as recognition, privileges and
symbols of status
Concept of Wages

Fair Wage

Minimum Wage Living Wage

Statutory Minimum Basic Minimum

Need Based
Objectives
 Establish fair and equitable compensation.
 Attract competent and qualified personnel.
 To retain present employees.
 To keep labor cost align with organization
ability to pay.
 To improve motivation and morale of
employees.
 To project good image of the company.
 To minimize chance of favoritism.
Principles
 Interest of all the parties should be
considered.
 Wage Plans should be flexible and responsive
to changes.
 Differences in wages should be based on
logical facts.
 Consistently align with organization plan.
 Expedite and Simplify administrative process.
 In line with prevailing market rates.
Factors Affecting

External Internal
Factors Factors
External Factors
• Demand and Supply
• Cost of Living
• Trade Union’s Bargaining Power
• Government Legislation
• Psychological and Social Factors
• Economy
• Technological Developments
• Prevailing Market Rates.
Internal Factors

Ability to Pay

Job Requirements

Management Strategy

Employee
Process
Job Analysis

Wage Survey

Group Similar Jobs to Pay Grades

Price Each Pay Grade

Fin- Tune Pay Rates

Wage Administration Rules

Types of Wages

Time Wage

Piece Wage

Wage Incentive Plan

Wage Incentive Plan
Halsey Premium Scheme

Rowan Premium Scheme

Taylor’s Plan

Merrick Plan

Gantt Plan

Emerson Plan

Profit-Sharing Scheme

Scanlon Plan
Submitted to-
Dr. Praveen
Saxena

Submitted by-

Anjali Patel