WAGES AND SALARY ADMINISTARION

 Wages
A wages is a monetary compensation or remuneration paid to the worker for doing
physical or manual work. The payment of wages done on the basis of hourly, daily,
weekly and Monthly.
 Salary
Salary is the decided monetary amount that an employer offer to an employee in lieu
of the service offered by the employee. If generally paid on monthly or yearly basis.
 Compensation
Compensation is a systematic approach to providing monetary value to employees in
exchange for work performance.
WAGES AND SALARY ADMINISTARION

INTRODUCTION:
Wages and salary administration is defined as the process by which wages and salary
levels and structure are determined in organisational settings.
The basis purpose of wages and salary administration is to establish
and maintain an equitable wages and salary structure. wages and salary are often one
of the largest component of cost of production and such have serious implementation
for growth and profitability of the company.
PROCESS OF WAGES AND SALARY ADMINISTARION
 WAGES DETERMINATION PROCES
 Job analysis :
Job analysis is the process of studying a job to determine which activities and
responsibilities it includes, its relative important to other jobs, the qualifications
necessary for performance of the job and the conditions under which the work is
performed.
 The Wages survey
The survey gives information on base salaries and benefits. This can be used by the
human resource manage to calculate the organisation’s competitive position and to
plan any corrective action required.as a first step in this process the human resources
manager must identify the organisation for labour.
 Conti…….

 Group Similar jobs into Pay Grades

After the results of job analysis and salary surveys have been received the committee
can turn to the task of assigning pay rates to each job, but it will usually want to first
group jobs into pay grades.
 Price Each Pay Grade
The next step is to assign pay rates to pay grades. Assigning pay rates to each pay
grade is usually accomplished with a wage curve. The wage curve depicts graphically
the pay rates currently being paid for jobs in each pay grade, relative to the points or
ranking assigned to each job or grade by the job evaluation.
 Conti……
 Fine-tune Pay Rates
Fine turning involves correcting out of line rates and developing rate ranges.
They have 2 process i:g
a) Correcting out of line rates
b) Developing rate Ranges
 Wages Administration Rules
The development of rules of wages administration has to be done in the next step. It
is considered advisable in the interests of the concern and the employees that the
information about average salaries and range in the salaries of group should be
made known to the employees concern.
 INTRODUCTION OF COMPENSATION POLICY

A Compensation policy is a principal of action proposed by

an organization in regard to an employee’s salary, benefits
and bonuses. There are many different forms of
compensation and each is subject to differing state laws and
regulations, in addition to the company’s culture and
insurance policies.
 DEFINITION

 Compensation is what employees receive in exchange for their contribution to the

organization. Financial rewards include wages, bonuses, pension plan and paid leaves.
 Non-Financial rewards helps in making the job more attractive and are somewhat subjective
in nature. Employees vary greatly on what types they find desirable. Compensation it is to
be noted here includes both intrinsic rewards as well as extrinsic rewards.
 OBJECTIVES OF COMPENSATION POLICY
 The most important objective of any pay system is fairness or equity .
The term “equity” has three dimensions :
 INTERNAL EQUITY :-
This ensure s that more difficult jobs are paid more
 EXTERNAL EQUITY:-
This ensure that job are fairly compensated in comparison to similar jobs in the labour market
 INDIVIDUAL EQUITY:-
It ensure equal pay for equal work i.e., each individual pay each fair in comparison to other doing the similar
jobs .
 WAGES AND SALARY ADMINISTRATION

 Wages and salary Administration refers to the establishment and implementation of sound policies and
practices of employee compensation.
After the independence and particularly after 1948 some new terms relating to wages
began to wages began to be used. These are
1. Statutory Minimum wages
2. Basic Minimum Wages
3. Minimum Wages
4. Fair wages
5. Living wages
6. Need based Wages
 CONCLUSION

After discussing about compensation administration administration , we come to

know what is compensation administered. It is managed to attract and retain the talent
in the organisation.
the main purpose of compensation is to attract keep and retain
the right employee in the organisation.