It is necessary to understand the process of how wages and salary are being given and allotted to each employees. The Human Resource Dept is the source to the take the responsibility of this task. Hence, it is important to understand how this works and how we are able to understand its function. I have included the Social Security topic here as it is a basic requirement of understanding how the process of acquiring a social security. It also includes the Social security in Indian context and it's laws governing social security schemes. etc

2. WAGES &
SALARIES

3. CONTENTS :
1.Introduction
01
2.Necessity
02
3.Objective
03
4.Wages
Payment
Method
04
5.Incentive
Plan
05

4. NECCESSITY
1.Attract and
Retain the
employees.
01
2.Builds High
Morale.
02
3.Satisfied
employees.
03
4.No
favoritism.
04
5.Clearly
drawn line of
promotion.
05
6.Image of
progressive
employer.
06
7.Harmonious
industrial
relation.
07

5. WAGES PAYMENT
METHOD
1.Time Rate System.
2.Piece Rate System.
3.Balance and Debt Method.
LAWS :
*The Payment Of Wages Act 1936
*The Industrial Dispute Act 1947
*The Minimum Wages Act 1948
*The Equal Remuneration Act 1976

6. INCENTIVES PLAN
TYPES OF INCENTIVES PLAN :
1.Individual Incentive Plan
2.Group Incentive Plan

7. REQUIREMENTS OF GOOD INCENTIVE PLAN :
1.It should be easy to understand.
2.It must be fair.
3.It should be fixed on upper limits.
4.Incentives should be pay as soon as possible.
5.It should be cost effectives.
6.The rates of incentives should not be change frequently.

8. OBJECTIVES :
1.To establish a fair and equal compensation.
2.To attract competent and qualified people.
3.To retain the present employees.
4.To improve the morale of employees.
5.To improve the relation between employees and
employers.
6.To minimize chances of favourtisms.

9. SOCIAL SECURITY

10. Contents:
• What is Social security?
• Evolution of social security
• Scope of social security
• Social security in India
• Social security laws in India

11. What is social security?
• It represent basically a system of protection of individuals who are in
need of such protection by the State as an agent of the society.
• Social security means:
• The security of an income to take the place of earnings.
• To provide against loss of support by death of another person and to meet
exceptional expenditure.

12. Evolution of Social security
The term ‘Social Security’ originated in the USA in 1935, the social
security Act was passed there and the Social Security Board was
established to govern and administer the scheme of unemployment
sickness and old age insurance.

13. SCOPE OF SOCIAL SECURITY
Social insurance:
 Periodical contribution to a fund by the workers.
Social Assistance:
 Non- contributory
 Government aided

14. SCOPE OF SOCIAL SECURITY
Public service:
Directly financed by
the Government.

16. Background information on Social Security
• Joint family

17. • Urbanisation, migration & demographic

18. • Create awareness

19. Social Security law in India

20. The Workmen’s compensation Act, 1923
• Oblige employers to pay compensation to workers for accidents
• The amount of compensation depends upon the nature of injury and
the average wage of the worker
• Injuries have been divided into three categories
• Causing death.
• Total or partial permanent disablement.
• Temporary disablement.

21. The Employee’s State Insurance Act, 1948
• Provides medical facilities
• Amendments (a minor change or addition designed to improve a text, piece of
legislation)
• It is compulsory and contributory
• Allocation of the Act:
• Employees Insurance Corporation.
• Members representing the inion and the states government, parliament,
employers’ and employees’ organizations.

22. The State provides 5 types of benefits
• Sickness benefit:
• Cash payment to the worker for 91 days per year.
• The daily rate of sickness benefit is calculated at half of average daily wage.

23. o Maternity Benefit
• Cash payment to the worker.

24. o Disablement Benefit (Unfit or incapable)
• Injuries arising out of and in the course of employment..

25. o Dependent benefit
(Relying on or requiring the aid or support of another)
• Insured upon the dependent of the worker

26. o Medical benefit
• Available to workers in need of medical attention due to health related
issues

27. Maternity Benefit Act, 1961
• It applied to all factories, mines & plantations
• To provide for the payment of maturity benefit to women worker

28. The Employee’s Provident Fund Act, 1952
• Provide retirement fund in the form of Provident fund, family pension..
• This Act is applicable to any factory where 20 or more person are employed or as
directed.
• Not apply to new establishments for 3 years from the date of establishment.

30. • Provident Fund Scheme
• Contributory fund
• It is deposited with The Provident Fund Commissioner @the
provident fund office

31. Employee’s Family Pension Scheme, 1971
• Pension is paid to the widow or children.
• New pension scheme guidelines.

32. • The Payment of Gratuity Act, 1972 (a sum of money
paid to an employee at the end of a period of employment.)
• This Act is applicable to all factories, mines, oil fields, plantations, etc..
• Empowerment of the Act.
• Gratuity payability.

33. Any Questions??

34. Thank You