Wages and salaries administration

By: Sheeba Rehman

Compensation management  Compensation is what employees receive in exchange for their contribution to the organisation. Total compensation = Direct + Indirect Compensation Base Pay Incentives Benefits .

Components of employee remuneration Remuneration Financial Basic wages Incentives. Individual plans Group plans Non-financial Job context Challenging job Responsibilities Fringe benefits Growth prospects P.F. Supervision Perquisites Medical care Working conditions Car Accident relief Job sharing etc Club membership Health and Paid holidays Group insurance Furnished house Stock option scheme .

Concepts of Wages  Minimum Wages  Fair Wages  Living wages .

Objectives of compensation planning  Internal equity  External equity  Individual equity  Attract talent  Retain talent  Ensure equity  New and desired behavior  Control costs  Ease of operation .

Motivation and performance model Feedback to employees Employees set Goals and expectations Rewards are given Employee considers Equity of Performance rewards Performance Is rewarded Employee sets new goals and Expectations based on prior experiences .

Importance of an ideal remuneration system Desire for more pay performance strikes grievances search for options absenteeism turnover Pay dissatisfaction lower attractiveness of jobs job dissatisfaction absenteeism psychological withdrawal visits to the Doctor poor mental health .

Legislations Society Economy Internal Business Strategy Job evaluation & PA The Employee .Influencing factors of Remuneration Remuneration External Labour Market Cost of Living Labour Unions Govt.

Devising a remuneration plan Job Description Job Evaluation Job Hierarchy Pay Survey Pricing Jobs .

The Development of a wage trendline New key Job B 10 9 Wages 8 or salaries 7 6 5 4 100 200 300 400 500 600 700 800 900 1000 Point Values Key Job A Wage-trend Line .

Challenges of remuneration Skills-based pay Salary reviews Remuneration Employee participation Comparable worth Pay secrecy .

Wages Policy in India  Payment of Wages Act. 1947  Minimum Wages Act. 1965  Wage Board . 1948  Equal remuneration Act. 1936  Industrial Dispute Act. 1976  Payment of Bonus Act.

Fringe Benefits (golden handcuffs)  Bonus  Social security  Medical  Canteen  Gratuity  Pension  Workmen¶s Compensation  Retirement benefits .

Objectives of fringe benefits  To create and maintain sound Industrial relations  To boost up employee moral and motivate them by identifying and satisfying their unsatisfied needs  To create sense of belongingness and retain them  To improve the quality of work life  To provide security to employees against social risk like old age  To protect the health of employees and provide safety against accident .

life insurance. travel time. festival bonus  Health protection: Accident insurance. gratuity. paid rest. housing subsidy. disability insurance. health insurance. medical benefit for retired employees. employee¶s insurance. profit sharing. job to son or daughter  Legal payment : unemployment/ lay-off compensation. paid lunch time. old age benefits under social security . vacation pay. sick leave. grievance time  Extra-pay for time worked: Bonus. travelling concession. old age insurance. medical care  Old age and retirement: Pension.Types of fringe Benefits  Payment for time not worked: Sick leave with pay.

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