This document discusses wage and salary administration. It defines wage and salary administration as the establishment and implementation of compensation policies and practices for employees. This includes job evaluation, wage and salary surveys, analyzing organizational issues, developing and maintaining pay structures, rules for administering wages, incentives, and controlling compensation costs. The objectives of wage and salary administration are to provide reasonable pay, attract qualified candidates, retain current employees, satisfy unions, ensure equal pay, reduce absenteeism, and balance pay expenses with the organization's ability to pay. Common methods for determining wages include time rates based on hours worked, piece rates based on output, and incentive plans that combine minimum wages and additional pay for exceeding production quotas. Organizations also conduct wage surveys to

1. Presented by Donkupar Nongshli
6n
“Wage & Salary
Adminstraion”
Course: MBA
University: DON BOSCO INSTITUTE
OF MANAGEMENT,
Guwahati

3.  According to Ds. Beach, “Wages and Salary administration is the
establishment and implementation of sound policies and
practice of employee compensation. It includes job evaluation,
survey of wage and salaries, analysis of relevant organisational
problem, development and maintained of wages structure,
establishing rules for administrating wages, wage payment
incentives, profit sharing, wages change and adjustments,
supplementary payment, control of compensation costs and
other related expenditure”
 Administration of employee compensation is called wages and
salary administration.
Wages and Salary
Administration

4.  To provide a reasonable and equitable remuneration for all
employees.
 To attract the best resource available in the labour market.
 To retain the current employees and minimise employee
turnover.
 To ensure that the management meets the agreed demand of
trade or employees unions.
 To ensure get equal pay for equal work is provided.
 To minimise employee problems such as absenteeism,
destruction of property, etc.
 To ensure that the expenses for employees and administrative
costs are in balance to the organisation’s capacity to pay.
OBJECTIVE OF WAGE AND SALARY
ADMINISTRATION

5.  Time rate.
 By this system, worker are paid on the basis of the
period of time that they work.
 Wages could fixed at hourly, daily, weekly, monthly,
etc.
 Wages = time used by worker X rate of wage according to
time.
 Piece rate.
 Under this method, worker are paid according to the
amount of work done or the number of unit complete
during a given period of time.
 Quantity of output is the significant factor in fixing
the wages.
 Wages = Units or pieces completed X Rate per unit.
METHOD OF WAGE FIXATION

6.  Incentive wages plan:
 It is the co-ordinated from both the above mentioned for wage
payment.
 Here, the employees get a minimum guaranteed wages based on
the time rate and also earn additional amount based on the
number of units made.
 Incentive wage may rise or fall in the quantity of production
 Wages and salary survey:
 Organisation conducts a survey of the pay levels for specific job
categories with other employees in the same labour market to fix
pay levels.
 This helps organisation to pay employees at the market rate and
at the same time ensure that their employees do not leave the
organisation seeking better opportunities.