1. Wages and salaries
administration
By: Sheeba Rehman

2. Compensation management
 Compensation is what employees
receive in exchange for their
contribution to the organisation.
Total compensation =
Direct + Indirect Compensation
Base Pay Incentives Benefits

3. 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

4. Concepts of Wages
 Minimum Wages
 Fair Wages
 Living wages

5. 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

6. 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

7. 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

8. 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

9. Devising a remuneration plan
Job Description
Job Evaluation
Job Hierarchy
Pay Survey
Pricing Jobs

10. 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

11. Challenges of remuneration
Skills-based Salary
pay reviews
Remuneration Pay
secrecy
Employee
participation
Comparable
worth

12. 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