Downloaded 385 times
More Related Content
Similar to Employee remuneration
Employee remuneration
- 1.
- 2. WAGE AND SALARYADMINISTRATION • Refers to the establishment and implementation of sound policies and practices of employee compensation • Denotes the process of managing a company’s compensation program
- 3. OBJECTIVES OF WAGEAND SALARY ADMINISTRATION • To establish a fair and equitable compensation offering similar pay for similar work • To attract competent and qualified personnel • To retain the present employees • To keep such costs in line with the ability to pay • To improve motivation and morale • Contd…
- 4. OBJECTIVES OF WAGEAND SALARY ADMINISTRATION Contd… • To improve union management relations • To project a good image of the company • To comply with legal needs relating to wages and salaries • To establish job sequences and lines of promotion wherever applicable • To minimize chances of favoritism
- 5. PRINCIPLES OF WAGEAND SALARY ADMINISTRATION • Interest of all parties concerned viz. employer, employees, consumers and the society to be kept in mind • Flexible to changes in internal and external conditions of the organization • Pay differences to be based on skill, responsibility, efforts and mental and physical requirements • Contd…
- 6. PRINCIPLES OF WAGEAND SALARY ADMINISTRATION Contd… • Be consistent with overall organizational plans and programs • To be in conformity with social and economic objectives of the country like attainment of equality in income distribution and controlling inflation, etc. • Workers should be associated as far as possible • Contd….
- 7. PRINCIPLES OF WAGEAND SALARY ADMINISTRATION Contd… • To be reasonably in line with the prevailing wages and salaries in the labor market • Workers should receive guaranteed minimum wages • To pay promptly and correctly • To be reviewed and revised periodically
- 8. CONCEPTS OF WAGES •Minimum wages • Fair wages • Living wages
- 9. MINIMUM WAGE • Toprovide not merely for bare sustenance of life but also for the preservation of the efficiency of the workers • Minimum wage must provide for some measure of cost of education, medical requirements and amenities • In India, determined mainly under the provision of Minimum Wages Act, 1948
- 10. FAIR WAGE • Ina narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighborhood for similar work • In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country
- 11. LIVING WAGE • Thisis higher than fair wage • Enables the wage earner to provide for himself and his family not only the bare necessities like food, clothing and shelter but a frugal comport to meet cost of eduction, medical, social needs, misfortunes and old age • Varies from country to country • Tribunals, awards and wage boards play major role in fair wage fixation
- 12. COMPONENTS OF WAGEAND SALARY • Financial • Non-financial
- 13. WAGES AND SALARIES • Hourly rates of pay • Monthly rate of pay • Annual increments • Differs from employee to employee
- 14. INCENTIVES • Paid additionally • Payment by results • Individual incentive scheme • Group incentive scheme
- 15. FRINGE BENEFITS • PF • Gratuity • Medical • Accident relief • Group insurance • Canteen facility • Uniform • Recreation
- 16. PERQUISITES • Allowed to executives • Company car • Club membership; • Paid holidays • Furnished house • Furniture • Stock option
- 17. NON MONETARY BENEFITS • Challenging job • Responsibilities • Recognition of merit • Growth prospects • Comfortable working conditions • Flexi time
- 18. FACTORS INFLUENCING WAGESAND SALARIES • EXTERNAL FACTORS • Demand and Supply • Cost of Living • Trade Unions’ Bargaining Power • Government Legislation • Psychological and Social Factors • Economy • Technological Development • Prevailing Market Rates
- 19. FACTORS INFLUENCING WAGESAND SALARIES Contd… • INTERNAL FACTORS • Ability to pay • Job requirements • Management Strategy • Employee related • Performance • Productivity • Seniority • Experience • Potential • Luck