Wages and salaries

administration

By: Sheeba Rehman

Compensation management
Compensation is what employees
receive in exchange for their
contribution to the organisation.

Total compensation =

Direct + Indirect Compensation

Base Pay Incentives Benefits

 Components of employee remuneration
Remuneration

Financial Non-financial

Basic wages Incentives,

Job context
Individual plans
Challenging job
Group plans
Responsibilities
Fringe benefits Growth prospects
P.F. Perquisites Supervision
Medical care Car Working conditions
Accident relief Club membership Job sharing etc
Health and Paid holidays
Group insurance Furnished house
Stock option scheme
Concepts of Wages
Minimum Wages
Fair Wages
Living wages
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
Motivation and performance model
Feedback to
Rewards are
given
employees

Employee considers
Employees set Equity of
Performance
Goals and Performance
Is rewarded
expectations rewards

Employee sets new goals and

Expectations based on prior experiences

Importance of an ideal remuneration
system
Desire for performance
more pay strikes
grievances
search for options absenteeism
turnover
Pay dissatisfaction

lower job psychological

attractiveness dissatisfaction withdrawal
of jobs absenteeism visits to the
Doctor
poor mental
health
Influencing factors of Remuneration
Remuneration

External Internal

Labour Market Business Strategy

Cost of Living Job evaluation &
Labour Unions PA
Govt. Legislations The Employee
Society
Economy
Devising a remuneration plan
Job Description

Job Evaluation

Job Hierarchy

Pay Survey

Pricing Jobs
 The Development of a wage trend-
line
New key Job B

10 Key Job A
9
Wages
8
or
salaries 7
6 Wage-trend Line
5
4

100 200 300 400 500 600 700 800 900 1000
Point Values
Challenges of remuneration

Skills-based Salary
pay reviews

Remuneration Pay
secrecy
Employee
participation

Comparable
worth
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