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Wages and salaries

administration

By: Sheeba Rehman

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Compensation management

Compensation is what employees

receive in exchange for their

contribution to the organisation.

Total compensation =

Direct + Indirect Compensation

Base Pay Incentives Benefits

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Components of employee remuneration

Remuneration

Financial Non-financial

Basic wages Incentives,

Individual plansGroup plans

Fringe benefits

P.F.

Medical careAccident relief

Health and

Group insurance

Perquisites

CarClub membership

Paid holidays

Furnished house

Stock option scheme

Job context

Challenging job

Responsibilities

Growth prospects

Supervision

Working conditionsJob sharing etc

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Concepts of Wages

Minimum Wages

Fair Wages

Living wages

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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

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Motivation and performance model

Employees set

Goals and

expectations

Performance

Is rewarded

Employee considersEquity of

Performance

rewards

Feedback to

employees

Rewards are

given

Employee sets new goals and

Expectations based on prior experiences

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Importance of an ideal remuneration

systemDesire for performance

more pay strikes

grievances

search for options absenteeism

turnoverPay dissatisfaction

lower job psychological

attractiveness dissatisfaction withdrawal

ofjobs absenteeism visits to the

Doctor

poor mental

health

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Influencing factors of Remuneration

Remuneration

External Internal

LabourMarketCost of Living

Labour Unions

Govt. Legislations

Society

Economy

Business StrategyJob evaluation &

PA

The Employee

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Devising a remuneration plan

Job Description

Job Evaluation

Job Hierarchy

Pay Survey

Pricing Jobs

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The Development of a wage trend-

line

100 200 500 700 800600300 400 1000900

10

9

8

7

6

5

4

Key Job A

New key Job B

Wage-trend Line

Point Values

Wagesor

salaries

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Challenges of remuneration

Remuneration

Skills-based

pay

Employee

participation

Comparable

worth

Pay

secrecy

Salary

reviews

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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