Base wages and salaries are defined as the hourly, weekly and monthly pay that employees receive for their work in an Organization.

Thus, Wage & Salary Administration is the group of activities involved in the development, implementation& maintenance of a pay system.

1. Reward employees according to effect and merit.

2. Attract and retain the services of desirable employees.

3. Get improved employee moral and productivity.

4. Pay employees according to the importance and difficulty of the job.

5. Incorporate legal requirements.6. Simplify collective bargaining. 7. Explain to employees how and why

they are paid. 8. Facilitate employee organisational

flexibility

To recommend changes in wage policies and in the salary of wage level.

To recommend top management specific raises for executives above a specified limit.

To check all activities of salary administration group against the company policies.

To approve in a board policy determining manner, the system of job description and job evaluation.

To review wage and salary schemes department wise.

To recommend to top management the wage policies for the administration of wage programme .

Step-1

Step-2

Step-3

Step-4

Step-5

Job analysis-formulation of job description and job specification

Job evaluation

Pricing job structure

Deciding method of wage payment

Evaluation of wage& salary

difference between salary and wages-

WAGES

Paid to BLUE Collared

On Daily, weekly, Monthly

Can be measured in terms of money

SALARY

Paid to WHITE collared Employees

Paid at specified Intervals

Paid to Employees whose contribution can be

measured