This document defines wages, salary, and compensation and discusses wage and salary administration. It provides guidelines from acts like the Payment of Wages Act and Minimum Wages Act. Wage and salary administration aims to acquire and retain qualified employees through a systematic pay system that is logical, equitable and fair. It considers factors like comparable industry pay, ability to pay, productivity, cost of living, and union pressures. The pay system goals are to simplify negotiations and maintain competitiveness, employee expectations, behavior, and good industrial relations.

1. WAGES AND SALARY
ADMINISTRATION
RAHUL SHUKLA
DEEPAK

2. WAGES & SALARY ADMINISTRATION
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.

3. 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

4. Definition
Wage and Salary Administration
• Wage salary and administration is essentially the
application of systematic approach to the problem of
ensuring that employees are paid in logical, equitable
and fair manner.
• Thus, Wage & Salary Administration is the group of
activities involved in the development,
implementation& maintenance of a pay system.

5. Wage Boards / Pay Commissions
Wage Policies are formulated by following
Institutions in India
1. Collective Bargaining & Adjudication
2. Wage Boards
3. Pay Commissions

6. GUIDELINES
Following ACTS provides guidelines to wage
boards to fix wage and salary
• PAYMENT OF WAGES ACT, 1936
• MINIMUM WAGES ACT, 1948

7. The Indian Labour Conference at its 15th session held at New Delhi in
July, 1957 suggested that minimum wage fixation should be need
based. Following are the important points of the Resolution of the
Conference.
•
a) The standard working class family should include three
consumption units for the one earner.
•
b) Calculation of minimum food requirements should be made on
the basis of the recommendation of Dr. Aykoroyed i.e. 27000
calories for an average Indian adult.
c) The workers should get minimum rent as per guidelines fixed by
the government in the industrial housing policy.
•
d) Expenses for fuel, light and so on should be equal to 20% of the
entire minimum wages.

8. Need For Sound Salary Administration
• Most of the employee’s satisfaction and
work performance are based on pay.
• Inequalities in pay create conflict
between employees.

9. OBJECTIVES
• To acquire qualified competent personnel.
• To retain the present employees.
• To ensure desired behavior.
• To keep Labour and Administration cost in line
with Organization ability to pay.
• To simplify Collective bargaining procedure
and negotiations.
• To facilitate payroll

10. 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

11. Principles Governing Salary Administration
• Maintaining Competitiveness
• Matching Employee Expectations
• Reinforcing positive employee behavior
• Eliminating any discrepancy
• Optimization of management and employee
interests
• Maintaining good IR and harmony

12. Conclusion
Wage and salary administration must fix the wages in that
way which enough for employees to fulfill his basic needs
and Organization are able to pay that wage.