1. Wage and Salary Administration

2. COMPENSATION
It refers to a wide range of financial and non financial rewards to the employees for the services rendered to the organisation .
It is is paid in the form of
Wages
Salaries
Employee benefits
Paid vacations
Free travel facility
Insurance benefits
Retirement benefits

3. Objectives of Wage &Salary Administration
To establish a fair and equitable remuneration
To attract competent personnel
To retain the present employees
To improve productivity
To control Costs
To improve union management relations
To improve the public image of the company

4. Essentials of sound wage and Salary structure
Internal Equity
External Competitiveness
Built in incentive
Link with productivity
Maintain Real Wages
Increments

5. Wage and Salary Base compensation
Wage : Remuneration to workers doing manual or physical work.Usually given to unskilled workers. It may be given on an hourly ,weekly ,monthly basis
Salary:It refers to the compensation paid to the officeemployees,foremen,managers,professional and technical staff .

6. Fringe Benefits Supplementary compensation
Compensation over and above the base compensation to retain the employees on a long term basis . The basic purpose behind this is to attract and retain the employees and motivate them
Also known as
Service programs
Employee benefits
Non wage payments

7. Examples Fringe benefits Perquisites or “perks”
Payment for time not worked
Housing
Insurance
Career counseling
crèche
Paid memberships in professional organizations
Perquisites or “perks”
take home vehicles /chauffeur driven vehicles
Paid vacations
Club membership
Entertainment allowance
Paternity leave
free refreshments
leisure activities on work time (golf, etc.),

8. Base compensation Vs Supplementary compensation
Payment to the workers for their work
Payment is in cash
Wage & salaries are paid to compensate for their services
Determined by job evaluation,demand & Supply of labour ,organizations capacity to pay ,bargaining power of trade unions ,productivity ,govt regulations .
It denotes fringe benefits over &above their wages /salary
Paid in the from of employee services (Housing,canteen)
They are paid to increase their efficiency & retain them
Determined by the history of the organisation,capacity of the organisation to pay ,need to retain the talented employees ,desire to enhance the public image ,philosophy of the management

9. General and Individual Factors affecting Wages
Employee’s Age and work Experience
Educational Qualification
Promotion possibilities
Hazards involved in the job
Stability of Employment
Demand for the product
Industry’s role in the economy
Potentials of an employee
General Factors
Demand for and Supply of labour
Ability to pay of the Organization
Labour Unions
Cost of Living
Prevailing wage rates
Job Requirements
Productivity
State Regulation

10. Wage policy in India
It refers to all systematic efforts of the government in relation to the wage and salary system. The major objectives are
To obtain to the workers a just share of the fruits of economic development.
Set minimum wages for the workers whose bargaining power is weak
To bring about a more efficient allocation and utilization of human resources
To abolish malpractices and abuses in wage and salary payments .

11. The enactment of Payment of wages Act 1936
The Industrial Disputes act 1947
The minimum Wages Act 1948
The Equal Remuneration Act 1976
Constituted Wage Boards that are tripartite in nature
Pay Commissions at the central and state level