Wage And Salary Administration Subtitle

Salary Payment, usually paid monthly and usually expressed as an annual amount, made by employers to employees in return for work done. Wage Payment for labor or services usually according to contract. An equivalent or a return for something done, suffered or given.

Theories in Wages Classical Wage Theory This theory is based upon the fundamental concept that the labor is a commodity and we have to pay the price according to supply and demand.

Standard of Living Theory of Wages This theory based on the cost of living. That the cost of living is dependent upon the economic needs of the family for the basic necessities of life for food clothing and shelter.

Wage and Salary Survey Informal Surveys Formal Salary and Wage Survey May be conducted through telephones and informal interviews Formal Salary and Wage Survey It uses questionnaires based on benchmark jobs that are also present in other companies and industries.

The following are the advantages of the wage and salary structure: It affect the workers’ earning and standard of living. It eases the recruitment and maintenance of an effective labor force. It develops employee morale and increases work efficiency. It represents cost and competitive advantage in the industry.

It helps in preparing budgetary allocations and eases computation of salary adjustments and as an aid in short term and a long range plans. It eliminates pay distortions and inequalities in employee compensation. It establishes an equitable salary range for various jobs.

Methods of Wage Payment The main purpose of a formal wage and salary management plan is to have a systematic method of payment to ensure that employees receive fair wage and salary for the work they perform. There are 2 methods of paying salaries: By the Time Worked b. By the Amount of Worked Produced

Classification of Workers Blue Collar - Manual Laborers Other information: Classification of Workers Blue Collar - Manual Laborers White Collar - Office Workers Pink Collar – Jobs associated with women like secretarial , nursing.

3 Categories of Labor Grades Other information: 3 Categories of Labor Grades Skilled Labor – These are workers who have received specialized training to do their jobs. Exp. carpenters, electricians, mechanics etc. Unskilled Labor – These are workers who have received no special training and have few specific skills. Exp const. workers, painters, factory assembly line etc.

3 Categories of Labor Grades Other information: 3 Categories of Labor Grades c. Professionals – elite of the labor grades, there are those workers who need an advanced degree to do their jobs. Exp. Doctors, lawyers etc.

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