1. Wage and
Salary
Administration

2. Wage & Salary Administration
 An integral part of management.
 Systematic approach to provide
monetary values to employees.
 It is Administration of Employee
Compensation.
 Aims to establish and maintain an
equitable wage and salary structure.

3. Definition
 According to D.S. Beach-
“It refers to the establishment and
implementation of sound policies and practices
of employee compensation.”
 According to Bewath and Reins-
“It is essentially the application of a systematic
approach to the problem of ensuring that
employees are paid in a logical, equitable and
fair manner”

4. Wage Salary & Compensation
Wages Salary
Compensation

5. Wages
 Paid to Blue Collared employees.
 Daily, Weekly or Monthly work paid.
 Forjobs which can be measured to some
extent in terms of money’s worth.

6. Salary
 Paid to White Collared employees.
 Paid monthly, or bimonthly.
 Contribution of work can not be easily
measured.

7. Compensation
 Compensation is a comparative term.
 Itincludes wage and all other allowances
and benefits like allowances, leave
facilities, housing, travel and non-cost
such as recognition, privileges and
symbols of status

8. Concept of Wages
Fair Wage
Minimum Wage Living Wage
Statutory Minimum Basic Minimum
Need Based

9. Objectives
 Establish fair and equitable compensation.
 Attract competent and qualified personnel.
 To retain present employees.
 To keep labor cost align with organization
ability to pay.
 To improve motivation and morale of
employees.
 To project good image of the company.
 To minimize chance of favoritism.

10. Principles
 Interest of all the parties should be
considered.
 Wage Plans should be flexible and responsive
to changes.
 Differences in wages should be based on
logical facts.
 Consistently align with organization plan.
 Expedite and Simplify administrative process.
 In line with prevailing market rates.

11. Factors Affecting
External Internal
Factors Factors

12. External Factors
• Demand and Supply
• Cost of Living
• Trade Union’s Bargaining Power
• Government Legislation
• Psychological and Social Factors
• Economy
• Technological Developments
• Prevailing Market Rates.

13. Internal Factors
Ability to Pay
Job Requirements
Management Strategy
Employee

14. Process
Job Analysis
Wage Survey
Group Similar Jobs to Pay Grades
Price Each Pay Grade
Fin- Tune Pay Rates
Wage Administration Rules

15. Types of Wages
Time Wage
Piece Wage
Wage Incentive Plan

16. Wage Incentive Plan
Halsey Premium Scheme
Rowan Premium Scheme
Taylor’s Plan
Merrick Plan
Gantt Plan
Emerson Plan
Profit-Sharing Scheme
Scanlon Plan

17. Submitted to-
Dr. Praveen
Saxena
Submitted by-
Anjali Patel