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What are the components of wage structure?
The industrial wage structure in India consists of various components such as basic wages, dearness allowance, annual statutory bonus and host of fringe benefits and incentives.
What are wage structures?
Wage structure is generally the levels or hierarchy of job and pay ranges. It is the interrelationship of the levels of pay for different types of employees.
What are the components of employee?
Specifically, the components of remuneration to an employee’s comprise wages or salaries, incentives, fringe benefits, perquisites and non-monetary benefits.
- Wages and Salary:
- Incentives:
- Fringe Benefits:
- Perquisites:
- Non-Monetary Benefits:
What are 4 common pay structures?
What are the four different types of pay? There are more than four different types of pay structures to choose from, although some of the most common approaches used by private sector organisations include individual pay ranges, broadbanding, job families and career families.
What are the components of wages and salary?
Components of Salary Structure
- Basic Salary. Basic salary is the base income of an employee, comprising of 35-50 % of the total salary.
- Allowances. Allowance is an amount payable to employees during the course of their regular job duty.
- Gratuity.
- Employee Provident Fund.
- Professional Tax.
- Perquisites.
- ESIC.
What are the components of wage and salary administration?
What is Wage and Salary Administration – Major Components of an Employee’s Wage: Basic Pay, Dearness Allowance, Incentive, Fringe Benefits and Annual Statutory Bonus.
What do you mean by wage structure outline the components of wage structure?
Wages – Components of Industrial Wage Structure in India. The industrial wage structure in India consists of various components such as a basic wage, a dearness allowance, an annual statutory bonus, and a host of fringe benefits and incentives.
What is wages and salary structure?
Wage and salary structure consists of the various salary grades and their different levels of single jobs or groups of jobs. The term wage structure is used to describe wage/salary relationships within a particular grouping.
What are the basic components of a typical pay?
Components of employee compensation
- Salary and wages. In a compensation package, these typically make up the single largest component.
- Bonuses.
- Federal/state pay requirements.
- Long-term incentives.
- Health insurance.
- Life and/or disability insurance.
- Retirement plan.
- Time off.
What is variable component salary?
The variable component of the salary is delivered in many different ways. Like other parts of the salary structure, they can be grouped into five common types, namely cash bonuses and allowances or coupons, reimbursements, tie-ups with other firms for discounts, stock option plans and prizes.
What are the factors influencing wage structure?
7 Factors to Consider for Determining Wage and Salary Structure…
- (i) Labour Unions:
- (ii) Personal perception of wage:
- (iii) Cost of living:
- (iv) Government legislation:
- (v) Ability to pay:
- (vi) Supply and demand:
- (vii) Productivity:
How does pay structure work?
A pay structure is a collection of wage grades, levels or bands that link related jobs within a hierarchy or series. It provides a framework to implement reward strategies and policies. They are usually designed to: Help ensure fairness and lawfulness, for example by avoiding pay discrimination.
What are the components of a salary structure?
The usual components of salary structure include: 1.Basic Salary: It is the taxable base income and generally not more than 40% of CTC. Basic salary forms the basis of salary structure many a times. Most of the components may be defined as percentage of basic salary.
What are the main components of a wage?
In its actual sense which is prevalent in the practice, wages are paid to workers which include basic wages and other allowances which are linked with the wages like dearness allowances, etc. Traditionally, in the absence of any bargaining power possessed by labourers, they did not have any say in the determination of wages paid to them.
What was the traditional concept of wage and salary administration?
The traditional concept of wage and salary administration emphasised on only determination of wage and salary structures in organisational settings. However, entered the business field which necessiated to take wage and salary administration in comprehensive way with a suitable change in its nomenclature.
What are the components of a sound wage system?
The wage rate is fixed for piece of work or for certain quantity of production. The components of a sound wage system are: 1. Fair standard – It must be based on a fair standard, after a careful time and motion study. 2. Fairness to employer and employee – Both the employer and the employee should feel that the system is fair. 3.