A Study on the Impact of Wages & Salary Admin in Current Organisation System

Abstract

This unit starts with the discussion on the concepts of wages. Then the different theories of wage payments and wage determination process are described elaborately. Wage payment procedures and types of wage are two important issues which are discussed in detail in this unit. In the last part of this unit, we have discussed on wage differentials. ‘Wage and Salary Administration’ refers to the establishment and implementation of sound policies and practices of employee compensation. The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure. Wages and salaries are often one of the largest components of cost of production and such have serious implications for growth and profitability of the company. On the other hand, they are the only source of workers’ income.
After the independence and particularly after 1948, some new terms relating to wages began to be used. These are:
1.Statutory Minimum Wages
2. Basic Minimum Wages
3. Minimum Wages
4. Fair Wages