Wage and Salary AdmlnlsLraLlon ls Lhe group of acLlvlLles lnvolved ln Lhe developmenL

lmplemenLaLlon and malnLenance of a pay sysLem Pere wage and salary admlnlsLraLlon
lncludes allowances leave faclllLles houslng Lravel eLc and noncosL rewards such as
recognlLlon prlvlleges and symbols of sLaLus lL ls an ongolng process of managlng a wage and
salary sLrucLure
C8!LC1lvLS
O 1o have a sclenLlflc raLlonal and balanced wage salary sLrucLure
Pere Lhe employer should noL feel LhaL Lhe employees are pald more Lhan Lhey deserve and Lhe
employees should noL feel LhaL Lhey are underpald unless Lhere ls a sclenLlflc approach/meLhod
we cannoL solve Lhls confllcL
Under reward, Over-reward and inconsistency oI reward not only tend to lead to lower
satisIaction to promote equity and satisIaction

ueflnlLlon of wage and salary
Wage ald Lo bluecollar workerspald dally weekly or monLhlypald for Lhe [obs whlch can Lo
some exLenL be measured ln Lerms of money's worLh
Salary ald Lo whlLe collar workerspald monLhlypald Lo employees whose conLrlbuLlon cannoL
be easlly measured
Factors influencing wage and salary structure and administration
A sound wage policy is to adopt a job evaluation programme in order to establish fair differentials
in wages based upon diIIerences in job contents. Beside the basic Iactors provided by a job description
and job evaluation, those that are usually taken into consideration for wage and salary
administration are:
The organizations ability to pay;
Supply and demand of labour;
The prevailing market rate;
The cost of living;
Living wage;
Productivity;
Trade unions bargaining power;
1ob requirements;
Managerial attitudes; and
Psychological and sociological factors.
Levels of skills available in the market.
ADMINISTRATION OF WAGES AND SALARIES
Wage and salary administration should be controlled by some proper agency. This responsibility may be
entrusted to the personnel department or to some job executive.The major Iunctions oI such Committee
are:
pproval and/or recommendation to management on job evaluation methods and Iindings;
Review and recommendation oI basic wage and salary structure;
Help in the Iormulation oI wage policies Irom time to time;
Co-ordination and review oI relative departmental rates to ensure conIormity; and
Review oI budget estimates Ior wage and salary adjustments and increases.

This Committee should be supported by the advice oI the technical staII. Such staII committees may be
Ior job evolution. Job description, merit rating, wage and salary surveys in an industry, and Ior a review
oI present wage rates procedure and policies.
PRINCIPLES OF WAGES AND SALARY ADMINISTRATION
The generally accepted principles governing the fixation of wages and salary are:
There should be deIinite plan to ensure that diIIerences in pay Ior jobs are based upon variations
in job requirements, such as skill eIIort, responsibility or job or working conditions and mental
and physical requirements.
The general level oI wages and salaries should be reasonably in line with that prevailing in the
labour market.
The plan should careIully distinguish between jobs and employees. job carries a certain wage
rate, and a person is assigned to Iill it that rate.
Equal pay Ior equal work, i.e., iI two jobs have equal diIIiculty requirements, the pay should be
the same, regardless oI who Iills them.
There should be a clearly established procedure Ior hearing and adjusting wage complaints. This
may be integrated with the regular grievance procedure, iI it exists.
The employees and the trade union, iI there is one, should be inIormed about the procedure used
to establish wage rates. Every employee should be inIormed oI his own position, and oI the wage
and salary structure.
The wage and salary structure should be Ilexible so that changing conditions can be easily met.