1. HRD
EMPLOYEE REMUNERATION

2. WAGE AND SALARY ADMINISTRATION
• Refers to the establishment and
implementation of sound policies and
practices of employee compensation
• Denotes the process of managing a company’s
compensation program

3. OBJECTIVES OF WAGE AND SALARY
ADMINISTRATION
• To establish a fair and equitable compensation
offering similar pay for similar work
• To attract competent and qualified personnel
• To retain the present employees
• To keep such costs in line with the ability to
pay
• To improve motivation and morale
• Contd…

4. OBJECTIVES OF WAGE AND SALARY
ADMINISTRATION Contd…
• To improve union management relations
• To project a good image of the company
• To comply with legal needs relating to wages
and salaries
• To establish job sequences and lines of
promotion wherever applicable
• To minimize chances of favoritism

5. PRINCIPLES OF WAGE AND SALARY
ADMINISTRATION
• Interest of all parties concerned viz. employer,
employees, consumers and the society to be
kept in mind
• Flexible to changes in internal and external
conditions of the organization
• Pay differences to be based on skill,
responsibility, efforts and mental and physical
requirements
• Contd…

6. PRINCIPLES OF WAGE AND SALARY
ADMINISTRATION Contd…
• Be consistent with overall organizational plans
and programs
• To be in conformity with social and economic
objectives of the country like attainment of
equality in income distribution and controlling
inflation, etc.
• Workers should be associated as far as
possible
• Contd….

7. PRINCIPLES OF WAGE AND SALARY
ADMINISTRATION Contd…
• To be reasonably in line with the prevailing
wages and salaries in the labor market
• Workers should receive guaranteed minimum
wages
• To pay promptly and correctly
• To be reviewed and revised periodically

8. CONCEPTS OF WAGES
• Minimum wages
• Fair wages
• Living wages

9. MINIMUM WAGE
• To provide not merely for bare sustenance of
life but also for the preservation of the
efficiency of the workers
• Minimum wage must provide for some
measure of cost of education, medical
requirements and amenities
• In India, determined mainly under the
provision of Minimum Wages Act, 1948

10. FAIR WAGE
• In a narrow sense, wage is fair if it is equal to
the rate prevailing in the same trade and in
the neighborhood for similar work
• In a wider sense, it will be fair if it is equal to
the predominant rate for similar work
throughout the country

11. LIVING WAGE
• This is higher than fair wage
• Enables the wage earner to provide for
himself and his family not only the bare
necessities like food, clothing and shelter but
a frugal comport to meet cost of eduction,
medical, social needs, misfortunes and old age
• Varies from country to country
• Tribunals, awards and wage boards play major
role in fair wage fixation

12. COMPONENTS OF WAGE AND SALARY
• Financial
• Non-financial

13. WAGES AND SALARIES
• Hourly rates of pay
• Monthly rate of pay
• Annual increments
• Differs from employee to employee

14. INCENTIVES
• Paid additionally
• Payment by results
• Individual incentive scheme
• Group incentive scheme

15. FRINGE BENEFITS
• PF
• Gratuity
• Medical
• Accident relief
• Group insurance
• Canteen facility
• Uniform
• Recreation

16. PERQUISITES
• Allowed to executives
• Company car
• Club membership;
• Paid holidays
• Furnished house
• Furniture
• Stock option

17. NON MONETARY BENEFITS
• Challenging job
• Responsibilities
• Recognition of merit
• Growth prospects
• Comfortable working conditions
• Flexi time

18. FACTORS INFLUENCING WAGES AND
SALARIES
• EXTERNAL FACTORS
• Demand and Supply
• Cost of Living
• Trade Unions’ Bargaining Power
• Government Legislation
• Psychological and Social Factors
• Economy
• Technological Development
• Prevailing Market Rates

19. FACTORS INFLUENCING WAGES AND
SALARIES Contd…
• INTERNAL FACTORS
• Ability to pay
• Job requirements
• Management Strategy
• Employee related
• Performance
• Productivity
• Seniority
• Experience
• Potential
• Luck