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Wages and salary administration
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- 3. Development of APay System Review of Job Description Conduct Job Evaluation Pay Structure Gather Wage Survey Information Administer Individual Pay Adjustments Monitor & Upgrade Pay System
- 5. Factors Affecting Wage/ Salary Levels • Remuneration in comparable industries • Firm’s ability to pay • Relating to price index • Productivity • Cost of Living • Union Pressures & Strategies • Government Legislations
- 6. WAGES & SALARYADMINISTRATION DEFINITION WAGES & SALARY • Base wages and salaries are defined as the hourly, weekly and monthly pay that employees receive for their work in an Organization. • Can term it as compensation management. • Thus, Wage & Salary Administration is the group of activities involved in the development, implementation& maintenance of a pay system.
- 7. Difference in Wages,Salary & Compensation Terms WAGES Paid to BLUE Collared On Daily, weekly, Monthly Can be measured in terms of money SALARY Paid to WHITE collared Employees Paid at specified Intervals Paid to Employees whose contribution cannot be measured COMPENSATION Comparative Form All Basic , gross amount , allowances + Benefits
- 8. Principles Governing Compensation Administration MaintainingEquity Maintaining Competitiveness Matching Employee Expectations Reinforcing positive employee behavior Eliminating any discrepancy Optimization of management and employee interests Maintaining good IR and harmony
- 9. Purpose of Wage& Salary Attracting talented resources Retaining and motivating employees Financial Management Legal Requirements
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- 12. Types of IncentivePlans • SHORT TERM PLANS: Halsey Plan, Rowan, Barth, Point Rating System, Progressive Bonus • LONG TERM PLANS: Annual Bonus, Profit Sharing Direct Compensation (Base Pay, Incentives) Indirect (Benefits) TOTAL COMPENSATION
- 13. Concepts of DifferentWages MINIMUM WAGES: Minimum amount of remuneration paid to workes. Under Minimum Wages Act 1948. FAIR WAGES: Workers performing work of equal skills, difficulty or unpleasantness should receive equal or fair wages Match the prevailing wage rates LIVING WAGES: Living wages should enable the male earner to provide for himself and his family, not only the bare essentials of food, clothing and shelter, but also a measure of frugal comfort including: Education for the children , Protection against ill-health ,Requirements of essential social needs , A Measure of insurance against the more important misfortunes including old age
- 14. Wage Boards /Pay Commissions Wage Policies are formulated by following Institutions in India 1. Collective Bargaining & Adjudication 2. Wage Boards 3. Pay Commissions
- 15. Reports & Documentation •Salary and Payroll Processing Statutory Payroll Reports Leave Management Employee Self Service Payroll Reconciliation Tools Reimbursements & Loans Payroll Processors & Outsourcers Arrears & final settlement Head count summary • Payroll Journal Voucher Payslips (print / PDF / email / online) Salary Statements Dynamic report writer tool PF & ESI reports (monthly, annual) Monthly Profession Tax reports Income tax statement Form 16 PDFs Quarterly eTDS filing (Form 24Q)
- 16. PAYROLL PROCESSING Payroll Outsourcing Payroll Software ManualSystem Accountant
- 17. Evolution of StrategicCompensation Traditional Compensation System Change in Compensation System Modern Compensation Systems
- 18. Trainings • This programfocuses on building a broad understanding of compensation, and covers: • HR’s role in compensation • Components of total compensation • Laws and regulations affecting compensation programs • Independent contractors • Indirect compensation (benefits) programs • Legally required programs • Who Should Attend? This fundamental program is designed for HR practitioners just entering the field, established HR employees with little or no formal training, other employees who have responsibilities that fall under the HR umbrella, and business owners and managers without HR departments.
- 19. Conclusion • Compensation isa hot potato for the Human Resource Department. The motivation level of the employees to great extent lies in monetary rewards. In the current state of affairs it is indispensable to restructure the pay models. Similar to changes bought about in the other departments the HR should also emphasize on restructuring the costs so as to bring the variable cost close to zilch. • The major challenges what manager’s face today is retention of the man power and the major cause of it is that they are paid better in the other organizations.