Contemporary issues in wage systems

1. THE CONTEMPORARY
ISSUES IN WAGE SYSTEM

2. THE CONTEMPORARY
ISSUES IN WAGE SYSTEM
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3. THE CONTEMPORARY ISSUES IN WAGE SYSTEM
▪ In industries, wage system is associated with number of
issues. Some of the issues are,
1. Differences in the interest of stakeholders while employees
want to improve the wage levels and reduce unit labour costs.
2. Feeling of disparity or inequity among the employees
belonging to various sectors, having different or same levels of
skills. Both in regular full time employment and temporary job,
the difference in the ratio of cash salary is high for same skill
level employees.
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4. THE CONTEMPORARY ISSUES IN WAGE SYSTEM
3. The labour standards are getting lowered due to cost cutting
competition.
4. Difference in wages is based on business strategy, sectorial
differences and ownership. Also job evaluation is not much
used in determining wage differentials.
5. The problems like inequity in lowest and the highest paid
employees of private sector, corporate governance and
proportionality, misuse of stock options and propriety related
issues etc., has a significant impact on executive and
managerial remuneration resulting in distortions.
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5. THE CONTEMPORARY ISSUES IN WAGE SYSTEM
6. Complicated issue arises in tax planning, when the tax
provisions change frequently.
7. Age group differences are also seems to be problematic as the
older employees prefer retirement benefits and the younger
ones are much concerned about cash.
8. Job hopping is increasing day by day leading to increased
needs of employees in terms of portability in insurance,
retirement and health benefits.
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6. THE CONTEMPORARY ISSUES IN WAGE SYSTEM
9. Retirement benefits are found to be uncertain due to the fall of
interest rates and shift from defined benefits to defined
contributions.
10.Difficulty in securing legal compliances for minimum wage
legislation.
The outdated legal threshold limits does not ensure to cover the
employees of entire organized sector.
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7. THANKS!
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