Wage and salary administration

Wage

Remuneration paid by the employer for

employee services of hourly, daily, weekly, and
fortnightly
 Salary
Remuneration paid to the clerical and
managerial personnel employed on the
monthly or annual basis.
Need and objectives
 Factors affecting wage and salary levels

• Remuneration in comparable industries

• Firm ability to pay
• Relating to price index
• Productivity
• Union pressure and strategies
• Demand and supply of labour
• Government legislations
– Payment of wages Act, 1936
– Minimum wages Act, 1948
– The payment of bonus Act,2015
– The equal remuneration Act,1976
 Wage policy in India
• Minimum wage
• Fair wage
• Living wage
 Two methods of wage payment
• Time wage method(time)
• Piece rate method(production)(price per
piece/unit of output)
– Straight piece rate
– Piece rate with guaranteed time rate
– Differential piece rate
 Fringe benefits
• Extra benefits given in addition to
compensation
 Types

Payment for time not worked

Employee security benefits
Safety and health related benefits
Welfare /recreational benefits
Old age and retirement benefits
 Incentives and performance linked
compensation
• Incentives or reward can be anything that
motivates an employee complete the
assignment work with zeal, enthusiasm and
commitment
• Individual incentives
• Group incentives
• Organisation incentives
 Individual incentives based on time rate or
piece rate
• Taylor’s differential piece rate system
• Merrick’s differential piece rate system
• Halsey plan(time)
• Rowan plan
• Gantt task and bonus plan
• Bedeaux plan
• Haynes manit plan
• Emerson’s efficiency plan
Bonus and performance based incentives
Group and organisation wide incentives

• Profit sharing
• Gain sharing
• Employee stock ownership plans
Pay for performance
Merit pay
Skill based pay
Competency base pay
Variable pay