WAGES AND SALARY ADMINISTRATION

Introduction

Development of A Pay System Review of Job Description Conduct Job Evaluation Gather Wage Survey Information Pay Structure Administer Individual Pay Adjustments Monitor & Upgrade Pay System

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

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. Can term it as compensation management. Thus, Wage & Salary Administration is the group of activities involved in the development, implementation& maintenance of a pay system.

Difference in Wages, Salary & Compensation Terms 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

Principles Governing Compensation Administration Maintaining Equity Maintaining Competitiveness Matching Employee Expectations Reinforcing positive employee behavior Eliminating any discrepancy Optimization of management and employee interests Maintaining good IR and harmony 

Purpose of Wage & Salary Attracting talented resources Retaining and motivating employees Financial Management Legal Requirements

Medical Reimbursement Special Allowances Basic Salary DIRECT COMPENSATION Bonus House Rent Allowance Leave Travel Allowance Conveyance

INDIRECT COMPENSATION Overtime Allowance Hospitalization Leave Policy Insurance INDIRECT COMPENSATION Flexible Timings Leave Travel Holiday Homes Retirement Benefits

Types of Incentive Plans SHORT TERM PLANS: Halsey Plan, Rowan, Barth, Point Rating System, Progressive Bonus LONG TERM PLANS: Annual Bonus, Profit Sharing Direct Compensation (Base Pay, Incentives) Indirect (Benefits) TOTAL COMPENSATION

Concepts of Different Wages MINIMUM WAGES: Minimum amount of remuneration paid to workes. Under Minimum Wages Act 1948. FAIR WAGES: Workers performing work of equal skills, difficulty or unpleasantness should receive equal or fair wages Match the prevailing wage rates LIVING WAGES: Living wages should enable the male earner to provide for himself and his family, not only the bare essentials of food, clothing and shelter, but also a measure of frugal comfort including: Education for the children , Protection against ill-health ,Requirements of essential social needs , A Measure of insurance against the more important misfortunes including old age

Wage Boards / Pay Commissions Wage Policies are formulated by following Institutions in India Collective Bargaining & Adjudication Wage Boards Pay Commissions

Reports & Documentation Payroll Journal Voucher Payslips (print / PDF / email / online) Salary Statements Dynamic report writer tool PF & ESI reports (monthly, annual) Monthly Profession Tax reports Income tax statement Form 16 PDFs  Quarterly eTDS filing (Form 24Q) Salary and Payroll Processing Statutory Payroll Reports Leave Management Employee Self Service Payroll Reconciliation Tools Reimbursements & Loans Payroll Processors & Outsourcers  Arrears & final settlement Head count summary

Payroll Software Accountant Manual System PAYROLL PROCESSING Payroll Outsourcing

Evolution of Strategic Compensation Modern Compensation Systems Traditional Compensation System Change in Compensation System

Trainings This program focuses on building a broad understanding of compensation, and covers: HR’s role in compensation Components of total compensation Laws and regulations affecting compensation programs Independent contractors Indirect compensation (benefits) programs Legally required programs Who Should Attend? This fundamental program is designed for HR practitioners just entering the field, established HR employees with little or no formal training, other employees who have responsibilities that fall under the HR umbrella, and business owners and managers without HR departments.

Conclusion Compensation is a hot potato for the Human Resource Department. The motivation level of the employees to great extent lies in monetary rewards. In the current state of affairs it is indispensable to restructure the pay models. Similar to changes bought about in the other departments the HR should also emphasize on restructuring the costs so as to bring the variable cost close to zilch. The major challenges what manager’s face today is retention of the man power and the major cause of it is that they are paid better in the other organizations.