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Principles in Determining Wages and Salaries

Principles in Determining Wages and Salaries

Wages and salary or this compensation It is of great importance to the motivation of the worker’s performance. Therefore, various administrative organizations, especially personnel management personnel, should have an understanding.

Study and research the criteria and methods that are important factors in determining wages and salaries. in order to be able to use the compensation of the organization going well effective and achieve the set objectives smoothly

In general, when determining wages and salaries, there are at least seven important factors that should be considered:

1. Wage rate level refers to the level of wages for a particular period of time. which may have a high rate Moderate or low level Because the level of wages may be determined by competition in the labor market. the organization’s policy or the financial status of the organization
2. Wage structure refers to the components of the wage rate or salary and the nature of the job. which is divided into layers and most often have the same number of levels. of positions in the organization wage difference may be obtained from performance appraisals
3. Performance appraisal means the performance of competent officials. assigned to perform any task for a period of time which can be used to determine the correct wage rate
4. Payment schedule means determining the method of payment of remuneration for each piece or type of work, such as setting wages paid on an hourly, daily, weekly basis, or paid according to the number of pieces of product produced, such as the number of products produced. Can be in pieces or dozens, etc.
5. Some special problems refer to the determination of wage payment criteria in a manner that differs from the hourly, hourly, hourly, or monthly basis as mentioned above. But the job has special characteristics that are different from the normal salary schedule that is set for example, the payment of compensation to professionals. Salesperson or management level person, etc. Therefore, the nature of remuneration payment has a special nature, for example, a salesperson may have salary, sick pay or other special discounts, etc.
6. Benefit means benefits that are specially received by the competent officials of the Organization. besides salary or the wages that are normally received These benefits may include pensions, pensions, profit dividends. life insurance medical expenses, etc.
7. Wage and salary control means the methods used to control The expenditure of wages and salaries of any organization which may have different methods but generally include the use of budgeting methods, labor wage rates and determining the type of work, etc., etc.