Wage and Salary Administration

6872 Words28 Pages
Wages and Salary Administration
Present by, Mosammat Rasheda Khanom Lipa

Contents page no. 1.0. Introduction 1 2.0. What is wages and salaries 1 2.1. Difference between wage and salary 1-2
3.0. Wage and salary administration 2
3.1. Nature and purpose of wage and salary administration 2-3
3.2. Principles of wage and salary administration 3-4
4.0. Types of wages 4-5
5.0. Factors affecting wages and salaries 5-6
6.0. Factors guiding wage fixation for industrial workers 6-7
7.0. Wage differentials 7-9
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Wage represent hourly rates of pay, and Salary refers to the monthly rate of pay, irrespective of the number of hours put in by an employee. They differ from employee to employee, and depend upon the nature of job, seniority and merit.
2.1 Difference between Wage and Salary
Wage is compensation to the employees for services rendered to the organization. In case the quantum of services rendered is difficult to measure, then the payment is called salary. Normally the wage period is shorter than the salary period.
Wage usually refers to an hourly rate, and salary to a weekly or semi-monthly rate. So if a wage earner works 40 hours one week and 45 the next week, he gets paid more for the second week. A salaried worker works long enough to get the job done and usually gets the same pay every payday.
Salary workers tend to get better benefits. They also get paid time off, which is not always true for hourly workers. They don’t have to punch a time clock. And the salary is a fixed amount every pay period, which makes it easier to set a budget. Usually people checking credit prefers to see a salary, which provides a consistent pay without any fluctuations due to schedules changes and illness etc. On the plus side, hourly workers get paid.
Wage is paid to the labor directly involved in production either receives money hourly, weekly or monthly .while salary is paid to the worker and staff related to administration and selling. Wages become part of the product cost, while
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