1. WAGES AND SALARY ADMINISTRATION

2. Introduction

3. 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

5. 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

6. 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.

7. 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

8. 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 

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

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

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

12. 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

13. Concepts of Different Wages
MINIMUM WAGES: Minimum amount of remuneration paid to workes. Under Minimum Wages Act 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

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

15. Reports & Documentation
Payroll Journal Voucher Payslips (print / PDF / / 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

16. Payroll Software
Accountant
Manual System
PAYROLL PROCESSING
Payroll Outsourcing

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

18. 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.

19. 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.