This document discusses compensation and remuneration in the workplace. It covers topics like components of employee pay, both financial and non-financial. Objectives of compensation planning include internal equity, attracting and retaining talent, and controlling costs. Factors that influence remuneration include the external labor market, cost of living, and internal factors like job evaluation. The document outlines steps to devising a remuneration plan, including job description, evaluation, and pay surveys. It also discusses challenges in remuneration and relevant wage policies in India.

1. Wages and salaries
administration
By: Sheeba Rehman

2. Compensation management
Compensation is what employees
receive in exchange for their
contribution to the organisation.
Total compensation =
Direct + Indirect Compensation
Base Pay Incentives Benefits

3. Components of employee remuneration
Remuneration
Financial Non-financial
Basic wages Incentives,
Individual plans
Group plans
Fringe benefits
P.F.
Medical care
Accident relief
Health and
Group insurance
Perquisites
Car
Club membership
Paid holidays
Furnished house
Stock option scheme
Job context
Challenging job
Responsibilities
Growth prospects
Supervision
Working conditions
Job sharing etc

4. Concepts of Wages
Minimum Wages
Fair Wages
Living wages

5. Objectives of compensation
planning
Internal equity
External equity
Individual equity
Attract talent
Retain talent
Ensure equity
New and desired behavior
Control costs
Ease of operation

6. Motivation and performance model
Employees set
Goals and
expectations
Performance
Is rewarded
Employee considers
Equity of
Performance
rewards
Feedback to
employees
Rewards are
given
Employee sets new goals and
Expectations based on prior experiences

7. Importance of an ideal remuneration
system
Desire for performance
more pay strikes
grievances
search for options absenteeism
turnover
Pay dissatisfaction
lower job psychological
attractiveness dissatisfaction withdrawal
of jobs absenteeism visits to the
Doctor
poor mental
health

8. Influencing factors of Remuneration
Remuneration
External Internal
Labour Market
Cost of Living
Labour Unions
Govt. Legislations
Society
Economy
Business Strategy
Job evaluation &
PA
The Employee

9. Devising a remuneration plan
Job Description
Job Evaluation
Job Hierarchy
Pay Survey
Pricing Jobs

10. The Development of a wage trend-line
New key Job B
100 200 300 400 500 600 700 800 900 1000
10
9
8
7
6
5
4
Key Job A
Wage-trend Line
Point Values
Wages
or
salaries

11. Challenges of remuneration
Skills-based
pay
Remuneration
Employee
participation
Comparable
worth
Salary
reviews
Pay
secrecy

12. Wages Policy in India
Payment of Wages Act, 1936
Industrial Dispute Act, 1947
Minimum Wages Act, 1948
Equal remuneration Act, 1976
Payment of Bonus Act, 1965
Wage Board