Chinaraj I

A
PROJECT REPORT
ON
WAGES&SALARIES ADMINISTRATION
AT
ZUARI CEMENT LIMITED
ABSTRACT
Chapter-1. It includes definition of WAGE: I.L.O defined the term wage as
The remuneration paid by the employer for the services of hourly, daily,
weekly and fortnightly employees.
SALARY: The term SALARY is defined as The remuneration paid to the
clerical and managerial personnel employed on monthly or annual basis.
The objectives of the study like to know the wage and salary procedure of
ZUARI CEMENT LIMITED, to know which factors affecting on Wage and
Salary Administration while giving salaries to employees.
Chapter-2 .it includes the research design, data source like primary data,
secondary data, Random sampling of 100 respondents has been taken for the
study from different department of ZCL.
Chapter-3 .Includes Mission, vision, values of ZUARI CEMENT LIMITED

and also consist personal & administration department functions.
Chapter-4.Gives the description of Wages and Salary Administration and its

different types of wages and variations ,wage board, wage policy, Equal
remuneration of act 1965, payment of bonus act, payment of wages act 1936,
Minimum wages act 1948.
Chapter-5. Gives the need for studying the wages and salary administration
in the organization and analysis & interpretation of the data which was
collected randomly through the Questionnaire. It also consists of the design of
the study.
Chapter-6. Consists of findings drawn from the data analysis & interpretation
and basing on these findings the suggestion are given.
2
CHAPTER-I
INTRODUCTION
3
INTRODUCTION
One of the most important and difficult problem of management is that of determining
the rate of monetary compensation i.e., the control of wage and salary levels is of
paramount importance. The main objectives of wage and salary administration are to
control the cost, to establish a fair and equitable remuneration to all, to utilize the
wages and salary device as an incentive to greater employee productivity and to
maintain a satisfactory public relations image. In order to achieve objectives the top
management or the chief executive officer is responsible for developing the policies
and procedures to administer the wages and salaries. The personal managers, being a
staff officer, place an important role in developing wage and salary policies and
procedures. In some organizations, the work is assigned to a wages and salary
committee composed of line and staff executives which makes the wage and salary
surveys, approves the systems of job description and job evolution, recommends the
wage policies and the wage and salaries scheme department wise.
CONCEPT OF WAGE
Wage & Salary Administration is essentially the application of a systematic
approach to the problem of ensuring that employees are paid in a logical, equitable &
fair manner.
WAGE: I.L.O defined the term wage as The remuneration paid by the employer
for the services of hourly, daily, weekly and fortnightly employees. It also means that
remuneration paid to production and maintenance or blue-collar employees. (Blue-
collar workers)
SALARY: The term SALARY is defined as The remuneration paid to the
clerical and managerial personnel employed on monthly or annual basis.
Wage/ Salary can be defined As the direct remuneration paid to an employee
compensating his services to an organization. (White-collar workers).
4
OBJECTIVES OF THE STUDY
To study and analyze the effectiveness of Wage and Salary Administration in

ZUARI CEMENTS LIMITED.
To know about the Wage Board Award and Wage Settlements of Cement
Factory.
To study the implementation of Wage and Salary Act.
To review the policies and agreements of wages and salary administration in

ZUARI CEMENTS LIMITED.
To identify which factors affecting on Wage and Salary Administration while

giving salaries to employees.
5
NEED OF THE STUDY
The major cause of industrial disputes in India is the determination of fair wage or the
increase in existing wage level.
One of the most important and difficult problem of management is that of determining
the rate of monetary compensation i.e., the control of wage and salary levels is of
paramount importance. The main objectives of wage and salary administration are to
control the cost, to establish a fair and equitable remuneration to all, to utilize the
wages and salary device as an incentive to greater employee productivity and to
maintain a satisfactory public relations image. Wage & Salary Administration is
essentially the application of a systematic approach to the problem of ensuring that
employees are paid in a logical, equitable & fair manner.
The need of the study is to know what are the fair wages that bring congruence
between employees and employer. It is a study to understand the application of wages
act in organization.
The project will help me to understand the implementation of labour laws in
organization , what are the procedures adopted by the organization used to implement
the acts and in turn help the organization to identify the loopholes of implementing
these acts.
6
SCOPE OF THE STUDY
The study enables me to understand the working of a personnel department in

manufacturing units and especially implementation of wage and salary administration.
Wage and salary administration is taken up as we can see the industry are becoming
very competitive and the organizations are trying to gain an edge by possessing
quality people. One of the technique that is used is by paying attractive salaries. Zuari
Cements is one of the organization which is established in the protected period. Now
it has to compete with the new organizations who attract the experience talent by
giving them ransom salaries. This study is taken up to understand the implementation
of wage and salary administration and suggest if any the techniques to retain the
quality employees.
7
CHAPTER-II
METODOLOGY OF
STUDY
8
METHODOLOGY
This chapter includes various tools and techniques that are used by the investigation
that the method followed in processing the research survey
Methodology includes a systematic way of collecting the data through sample

design, analyzing it, processing data, interpreting the data for requirements.
SOURCES OF DATA:
1. Primary data
2. Secondary data
3. Analysis of data
Primary data is collected in order to avoid any mistakes due to

transcription which may arise when collected through secondary
sources. The data is collected by questionnaire method.
Secondary data is collected from the companies reports, manuals and

brochures. Through company records, books, HR reports etc.
SAMPLING PROCEDURE:
The sampling method used was random sampling. The sampling method was
used because of lack of time and lack of knowledge about the universe. The sample
size was fixed to 100 respondents; the sampling procedure is response form.
9
STATISTICAL TOOLS USED:
BAR DIAGRAM, PIE CHART, AND PERCENTAGE ANALYSIS:
In this research, various percentages are identified in the analysis and they are
presented pictorially by way of bar diagrams and pie charts in order to have a better
qualit
LIMITAITONS
Though adequate care has been taken while doing the project, the Project still suffers
from certain limitations. They are
1. The Quality of work life involves a wider range. The present study examines it
from identified and selected dimensions only.
2. Time factor is the main constraints for the study

3. Information is bias while collecting the data from employees
4. With the constraint of the information, employees are hesitating to give the
required information and were not responding well.
5. Some respondents did not properly respond to the Questionnaire; thus to
eliminate this aspect the researcher has also conducted some personal
interviews.
10
CHAPTER-III
INDUSTRY PROFILE
COMPANY PROFILE
11
INDUSTRY PROFILE
The existence of modern civilization with out cement is difficult to imagine in

cities and towns. Cement is synonymous with progress by modern standards. The
progress and size of the cement industry in any country is taken as the major
indicators of the growth of the economy when the total demand is satisfied by home
production. Cement is an indicator of economic process, which would mean the
development of the cement industry in the country cement consumption, ought to be
taken as a reliable index of the economic growth.
In INDIA the first attempt to manufacture cement was made early in the
country when the EUROPEAN COMPANY in the year 1904 opened a factory in
MADRAS SOUTH INDIAN INDUSTRIES LIMITED for the purpose of
manufacturing the cement.
The real beginning of the cement industry was started by the formation of
INDIA CEMENT LIMITED in 1914 under TATAS management. The INDIA
CEMENT COMPANY started manufacturing cement at PORUBANDAR on a large
scale.
The total world production of cement is to be around 1600 million tons. Asia
is the largest consumer (59 %) followed by EUROPE & AMERICA. The
concentration of Lime Stone deposits in few states has led to the formation of cement
plant clusters at eight locations in INDIA, BILASPUR, SANTA, CHANDRAPUR,
GULBARGA, NALGONDA, CHANDERIA, and YERRAGUNTLA & TADIPATRI.
Three states of INDIA such as M.P, A.P & Rajasthan contribute 26.7 %, 13.3
%, 11.70 % of the capacity 74 % of the total lime stone reserves are in the states of
M.P, A.P, Karnataka, Rajasthan and Gujarat. The largest producer in terms of installed
capacity is BIRLA GROUP (above 25 %) followed by associated cement company
(11 %). INDIA is the worlds fourth largest cement producer after CHINA, JAPAN,
& U.S. in 1996-97 cement manufacture involve heating a mixture of
lime stone and clay, partial fusion occurs and lumps called clinker are formed.
12
The clinker is mixed with a little Gypsum to give Ordinary Portland Cement (OPC),
mixing with blast furnace slag of fly ash fields Portland blast furnace slag cement
(PBSFC), and Portland Pazzolona Cement(PPC) respectively. The
OPC,PPC,&PBSFC are 70%,18% and 11% respectively, the manufacturing process
has also changed from the in efficient bed process to the move efficient dry process 87
% of the total capacity is dry process & 11 % is wet.
What is CEMENT?
Cement is mixture of LIME STONE, CLAY, and SILICA & GYPSUM. It is fine
powder which when mixed with water sets to a hard mass as a result of hydration of
the constituents compounds. It is most commonly used construction material.
Different Types of CEMENT
There are different verities of cement based on different consumptions according to

specific end users namely
1. ORDINARY PORTLAND CEMENT ( OPC )
2. PORTLAND PAZZOLONA CEMENT (PPC)
3. PORTLAND BLAST FURNACE SLAG CEMENT (PBSFC)
4. WHITE CEMENT
5. SPECIALIZED CEMENT
The basic difference lies in the percentage of clinker used.
1) ORDINARY PORTLAND CEMENT (OPC)
OPC popularly known as gray cement has 95 % clinker and 5 % of Gypsum and other
materials. It accounts for 70% of the total consumption. White cement is a variation of
OPC and is used for the decorative purposes like rendering of walls, flooring etc., it
contains a very low portion of iron oxide.
13
2) PORTLAND PAZZOLONA CEMENT (PPC)
PPC has 80 % Clinker, 15 % of Pazzolona and 5% of Gypsum and accounts for 18%
of the total cement consumption. Pozolona has siliceous and aluminous materials that
do not possess cementing properties but develop these properties in the presence of
water.
It is cheaply manufactured, because it uses fly ash/ burnt clay/coal waste as the main
ingredient. It has a lower heat of hydration, which helps in preventing cracks where
large volumes are being caste.
3) PORTLAND BLAST FUNACE SLAG CEMENT (PBSFC)

PBSFC consists of 45 % of Clinker, 50% of blast furnace slag and 5 % of Gypsum
and account for 10 % of the total cement consumed it has a heat of hydration even
lower than PPC and is generally used in construction of dams and similar massive
constructions.
4) WHITE CEMENTS: Basically it is OPC-clinker using fuel oil (instead of

coal) and with iron oxide content below 0.4% to ensure whiteness. Special
cooling technique is used. It is used to enhance aesthetic value, in tiles and for
flooring. White cement is much more expensive than gray cement.
5) SPECIALIZED CEMENT:
OIL WELL CEMENT

Is made from clinker with special additives to prevent any porosity.
RAPID HARDENING PORTLAND CEMENT:

It is similar to OPC, except that it is ground much finer, so that on
Casting, the compressible strength increases rapidly
14
WATER-PROOF CEMENT:
OPC, with small portion of calcium sterate or non-specifiable oil to impart
waterproofing properties.
DIFFERENT TYPES OF PROCESSES:

The wet, semi-dry or dry processes can be used to produce cement. In the wet/semi-
dry process, the raw material is produced by mixing limestone and water (called
slurry) and blended with soft clay. The dry process and semi-dry processes are more
fuel-efficient. The vertical shaft technology employed by mini cement units, use the
wet process where as the rotary kiln technology uses the modern dry process. The
INDIAN CEMENT INDUSTRY has been progressively using the wet process with
dry process, which now accounts for 91 % of the installed capacity.
HOW IS CEMENT MADE?

The manufacturing process of cement consists of mixing, drying and grinding of
limestone, clay and silica into a composite mass. The mixture is then heated and then
burned in a PRE-HEATER and KILN and then cooled in an air-cooled system to form
clinker, which is the semi-finished form. This clinker
is cooled by air, sub-sequent ground with GYPSUM to form CEMENT. Limestone is
the key raw material and normally, 1.2-1.5 tons are need for every tons of cement. The
quality of Lime Stone significantly affects the operating efficiency of the units. Under
the normal conditions, to produce one ton of cement, 0.25 ton of coal, 120 KWH of
power and 0.05 ton of gypsum is required.
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COMPANY PROFILE
The company ZUARI AGRO CHEMICAL LIMITED was incorporated on 12 th may

1967. ZUARI CEMENT LIMITED has been hived off as a separate with 50: 50
shares holding by ZUARI INDUSTRIES LIMITED (A K.K.Birla Group Company)
and ITALI CEMENTI GROUP (an ITALIAN cement company) with effect from 01-
04-2000 with head quarters at BANGOLORE.
ZUARI & ITAL CEMENTI GROUP( through cement Francis, a Group., co.,)
have formed a joint venture with 50 : 50 equity sharing the ZURAI CEMENT
business got transferred to the joint venture company i.e., ZUARI CEMENT
LIMITED. It is a projected to increase the current capacity of 2.2 MTPA to a level of
about 8 MTPA in a span of 3 to 4 years. The primary focus of joint venture will have
full access to R&D facilities of ITALI CEMNTI GROUP.
ZUARI CEMNT was a division of ZUARI INDUSTIES LIMITED. The

company promoted by the house of BIRLAs and U.S.MULTI NATIONAL GAINT
USX, having its Registered office at JAI KISSAN BHAVAN, ZUARI NAGAR, GOA.
The company is a part of the 4500 crores K.K.BIRLA GROUP, having primary
interests in fertilizers, Agro inputs, cements, RTA furniture, Engineering Services,
home finance, etc.,
The cement Division was formed after acquisition of a cement plant of 0.5
MTPA capacity from M/S.TEXMACO LIMITED.( another K.K.BIRLA GROUP
COMPANY) in Feb.,1995. After acquisition of the capacity of the plant was enhanced
from 0.5 to 1.7 MTPA at a capital cost of 367 crores. The expansion program was
completed in 1995 and the commercial production commenced from Feb., 1999. The
Expand capacity has already stabilized and the plant capacity was increased to 1.7
MMT to 2.2 MMT in AUGUST 2001.
16
ITALI CEMENTI GROUP is the largest producer and distributor of cement in
EUROPE and one of the leaders in the market place. The group operates 13 countries
including BELGIUM, KANADA, FRANCE, GREECE, ITALI, MOROCCO, SPAIN,
and TURKEY AND U.S. with recent acquisitions in BULGARIA AND
KAZAKISTHAN AND THAILAND.
The group was founded in 1864 and has its headquarters in BERMAGO,
ITALI. Currently the group has a network of 54 plants with a capacity of 40 MTPA
clinkers, which translates to a cement capacity of above 50 MTPA spread over 13
Countries. The group also has over 500 RMC Plants all over the world. The
consolidated group turnover in 2000 was 4 billion US $. The group has excellent
R&D and machine design facilities head quartered at BERMAGO, ITALI, which
render technical support to all the group plants.
The company is also engaged in Trading Activities in cement

manufactured by RATNA CEMENT, BELGUM, and SOUTH INDIA CEMENT,
MILKED AND CCI TANDUR unit through specific arrangement with the respective
manufactures.
LOCATION
The plant is located at a distance of 6 KM from YERRAGUNTLA. This plant
is connected to the Railway Station by a Railway Track of 7 KM length and is having
exchange point inside the plant.
SOURCES OF RAW-MATERIAL
The raw material required for the manufacturing of the cement in ZUARI
CEMENT plant are limestone, iron, bauxite and gypsum. The limestone is one of the
major raw materials being excavated from the captive limestone mines, which are
located at a distance of half a kilometer away; from the plant with area of 1027.56
acres, which is leased area. SINGERENI COLLIERIES LIMITED supply another
vital raw material i.e., COAL.
17
WELFARE SERVICES
As a means of welfare services the ZUARI CEMNT is running one
Dispensary and extending its services to all the workers and their families. The
following are the facilities.
1. Tele communication Facility
2. Postal facility
3. Housing
4. Parks, Clubs, Cable Network
5. School
6. Canteen
7. Guest House
8. Health Care Service
Coming to the Working Environment of ZUARI

1 A canteen is located in the working place for the convenience of employees.
2 Helmets are Providing to the employees in the working area
3 Aprons, Rain coats are provided to the employees to protect themselves and to
attend their work at any climatically condition.
4 A Bus, Vans are also provided for the pedestrians at the starting time of work
5 Alarms were placed wherever necessary
6 Also the minimum requirements for the employees were provided according to
the statutory policies of the government.
TRANSPORTATION
For effective maintenance of office timings of workers, the ZUARI CEMENT
COMPANY is providing facilities to its workers dispersed in various places in
villages. The transportation is by BUS / VAN from house to company and back to the
house. Jeep facilities are also there with in the factory and for employees who staying
in quarters.
18
MEASURES OF POLLUTION CONTROL
Generally cement plant causes marginal impact on the environment due to the
continuous handling of raw materials, intermediate and final products from crushing
packing stages. At ZUARI CEMEN unit several pollution control equipment like
multi lane and dust collectors and Electro Static Precipitator (ESP) have been installed
to minimize the impact on environment pollution caused by cement plant.
WORKING CONDITIONS
The working conditions, size of the unit, the productive environment
And other recreational facilities provided by ZUARI CEMENT will make the workers
to feel more and more commitment in enhancing; the production targets. Besides, the
management of ZUARI CEMENT will also take enormous preventive and security
measures without happening unwanted things like accidents, explosives and other
polluted problems.
HOUSING FACILITY
Food, Clothing and The Shelter, the essential requirements of human beings.
Housing is the primary need of a human being in a civilized life. It constitutes the
most important which continuously influences mans health and well being. The
BHORA COMMITTEE, in this cortex, observed the health, happiness, general
manners and crche facility.
ZUARI CEMENT FACTORY is providing following necessary

housing facilities
1 The Quarters facilities are also available just nearer to the factory premises.
The company has provided 145 Quarters to their employees. The total place
occupied for township is 177 acres of land
2 The company is giving HRA to the wage board employees according to their
categories.
19
3 In the case of wage board employees the house rent is 30% of their Basic
Salary.
REST ROOM
There are three rest rooms, which are located at MAIN GATE. Area of the rest
rooms is kept clean with adequate ventilation with sufficient lighting
FIRST AID APPLIANCES

All provisions according to rules are implemented on shop floor and all
departments. First aid boxes are fixed at short distance from worksite. All these
requirements of first aid are provided in these boxes.
AMBULANCE FACILITY
There is one Ambulance provided in the dispensary. Dispensary is located in
the staff colony and the Ambulance is available for 24 hrs in the factory premises and
maintaining it properly.
DRINKING WATER
The supply of drinking water will also come under the category of basic
measures. Since the no. of workers is more than 500, the company is providing cool
water for workers. The place of the drinking water is always kept clean and there are
persons to recap the supply of water regularly. To purify the water standard chemicals
are using.
EDUCATIONAL FACILITIES
The company provides elementary school in colony. The company did
provides scholarships and books at subsidized rates
20
READING ROOM / CLUB
The ZUARI CEMENT FACTORY is having library and it is situated in the
employees colony
MEDICAL FACILITIES
The company has a dispensary, which contains a DOCTOR and assistant. The
company provides free medical aid for small wounds and bandages. If there is any
dangerous case, the company bares half of the amount.
RECREATIONAL FACILITIES
Many recreational facilities have been provided by the management to their

employees and their families such as gents club and ladies club, library, children
recreation park and certain indoor and out door games and also encouraged for which
the management undertake financial assurance.
SPORTS AND GAMES

The management of ZUARI CEMENT is conducting sports and games
whenever occasion arises and encouraging them by giving proper honorarium.
CULTURAL ACTIVITIES
Association arranges various cultural programs like music, orchestra and
puppet shows etc., and holiday trips like GOA, KODAIKANAL.
CO-OPERATIVE STORES / RATION SHOP

The company has made arrangement the ration shop for the supply of
essential commodities to their employees, which include rice, dhal, wheat, sugar, oil
and gas etc.,
The amount is deducted from the basic salary and also cosmetics are also being
supplied through this ration shop at cheaper rates when compared to market rates.
21
GRATUITY
1 The management is providing as per payment of gratuity act 1972.

2 The maximum amount of gratuity to an employee is 3 lack rupees which is
maximum.
3 Every employee will get gratuity of 50% salary in a year. The maximum
amount gratuity is 15 days salary in a year
LEAVE TRAVEL CONCESSION
Every wage board employees will get Rs.500 /- per annum this amount will be
given in salary to travel 750 KM per annum in first class A/C train.
ADVANCES ISSUED BY THE COMPANY:

HOUSING LOAN:
The company provides free Quarters to the workers who are near to the
factory. Water and electricity facilities are also provided to the Quarters. The
management has been paid HRD @ 12 % respectively for those who dont have own
house.
Advance is available for purchase of site and construction of house or to
expand the existing house. Maximum amount of advance is Rs. 2.5 lacks @ 6.5 % of
interest of M9 & M8 grades and M7 to M1 grade employees
getting advances Rs. 4.5 lacks @ of 6.5 % of interest.
VEHICLE ADVANCE
FOR SCOOTER / MOTOR CYCLE /CAR:
1 Advance for the above are given to those who have completed two years of
service in regular scale and those who have completed a period of one-year
probation successfully.
2 Maximum limit of advance for motorcycle is Rs. 35,000 / - recoverable in 12
equal installments with 4 % of interest.
22
3 Maximum limit of advance for car is Rs.90, 000 / - recoverable in 12 equal
installments with 6% of interest.
WASHING FACILITIES:
Adequate washing facilities have been provided to the employees. The
company is provided no. of taps for its employees and also the management has
provided washing allowance Rs. 150 / - per month for those who are
Getting uniforms.
LEAVE FACILITIES:
LEAVES WORKERS EXCUTIVES
CASUAL LEAVE 07 07
SICK LEAVE 12 15
PRIVILEGE LEAVE 15 30
CASUAL LEAVE:
Casual Leave is 7 day for workers & executives with full pay & allowances
shall be given to each employee every year without any condition. Casual leaves are
sanctioned for company standing orders. Before one day we can apply for the leave.
SICK LEAVE:
Sick leaves are 12 & 15 days for workers and executives. Up to 30
days are the limitations. Sick leaves are also sanctioned for company standing orders.
The employer shall insist upon no medical certificate for sick leave period of up to 6
days. After 6 days it is necessary to submit doctor certificate. It is accumulated up to
120 days.
23
PREVILEGE LEAVE:
Before 15 days we can apply (thrice in a year)30 days PL with full pay and
allowances shall be given to each employee every year without any condition for
every 20 days of work the workers gets one PL. this is
Enjoyable and en cacheable.
National and festival holidays in company, it is 9 days, actually the limit for
this is minimum 8 days, and maximum 10
MAN POWER:
The total manpower at ZUARI CEMENT is 401 members out of which 127 are
of managerial cadre and 274 are wage board employees. About 800-1000 are working
under contract basis.
DESIGNATIONS:
M1 ----- General Manager
M2 ----- Deputy General Manager
M3 ----- Senior Manager
M4 ----- Manager
M5 ----- Deputy Manager
M6 ----- Assistant Manager
M7 ----- Senior Officer
M8 ----- Officer (or) Engineer
M9 ----- Assistance Engineer (or) Assistant Offic
MAJOR USERS
ZUARI CEMENT is marketed throughout south India by wide network of stockiest.
The ZUARI sales officers and representatives are based in all most all the cities and
towns in SOUTH INDIA. Major users are
24
1. MADRA REFINERIES LIMITED
2. ASIA PACIFIC HOTELS LIMITED
3. AIRPORT AUTHORITY OF INDIA LIMITED
4. KARNATAKA POWER CORPORATION LIMITED
5. MARMOGA PORT TRUST
CORPORATE MARKETING OFFICE
ZUARI CEMENT corporate marketing office is at CHENNAI (TAMIL NADU) and

branches are at;
HYDERABAD ---------- Andhra Pradesh

BANGLORE ---------- Karnataka
COCHIN ---------- Kerala
PANAJI ---------- Goa
COMPETETORS
PENNA CEMENTS
ULTRA TECH CEMENTS
MALABAR
INDIA CEMENTS LIMITED
25
SHIFTS OF WORKING
The unit works around the clock. The working shifts are as follows
SHIFT DURATION LUNCH or DINNER

GENERAL SHIFT 8:00 A.M to 5:00 P.M 12 Noon to 1:00 P.M
SHIFT A 6:00 A.M to 2:00 P.M 11:30 A.M to 12:00 Noon
SHIFT B 2:00 P.M to 10:00 P.M 7:30 P.M to 8:00 P.M

SHIFT C 10:00 PM to 6:00 P.M No Break
26
CHAPTER-IV
REVIEW OF THE LITERATURE ON
WAGES & SALARY ADMINISTRATION
27
WAGES AND SALARY ADMINISTRATION
Introduction
The major cause of industrial disputes in India is the determination of fair wage or the
increase in existing wage level. By fair wage, they mean
Adequate wages to meet their basic and some what other needs. When this
expectation is not full filled, discontent is the result that results in fall in production,
productivity efficiency and overall discipline. The main cause of evolution of trade
unionism in India was the wages. Most of the collective bargaining agreements are
centered on the monetary compensation especially wages. While collective bargaining
is an essential component of industrial relations, wage is the central theme of
collective bargaining. Thus, wages can be considered the prime motivator of
industrial relations.
From management point of view, wages and salaries represent a

substantial part of the total cost which is ever increasing in view of the ability of the
trade union to win upward adjustment. Instances of reduction in wages are rare and
where it is necessary to reduce the labor cost, it is more and more through
technological changes in resulting in increasing the productivity of labor. It is not only
the concern of the organization but also is equally important for the workers to
maintain their social image.
One of the most important and difficult problem of management is that of

determining the rate of monetary compensation i.e., the control of wage and salary
levels is of paramount importance. The main objectives of wage and salary
administration are to control the cost, to establish a fair and equitable remuneration to
all, to utilize the wages and salary device as an incentive to greater employee
productivity and to maintain a satisfactory public relations image. In order to achieve
objectives the top management or the chief executive officer is responsible for
developing the policies and procedures to administer the wages and salaries.
28
The personal manager, being a staff officer, place an important role in developing
wage and salary policies and procedures. In some organizations, the work is assigned
to a wages and salary committee composed of line and staff executives which makes
the wage and salary surveys, approves the systems of job description and job
evolution, recommends the wage policies and the wage and salaries scheme
department wise.
CONCEPT OF WAGE
Wage & Salary Administration is essentially the application of a systematic approach
to the problem of ensuring that employees are paid in a logical, equitable & fair
manner.
Meaning of wages
Wage is the remuneration paid to an employee as compensation for the

services rendered by him to the organization or employer. The commodity theory of
wages is not in practice in which the price for labor is paid for the services sold to the
employer it is compensation paid to the
Employee for his contribution towards the corporate objectives. Wages at the time do
not include any facility or requisite like traveling allowances housing accommodation
and other welfare amenities provided to certain amount of work or certain period of
service viz. one day one week or one month. Thus wages can be understood as the
monetary compensation paid by the employer to his employees for the contribution he
makes for the achievement of corporate objectives.
Wages and salaries distinguished
Although wages include salaries yet there is slight difference in wages and
salaries. Payment to labor engaged directly in production is called wages. In other
words wages have direct relation with the production. Salaries on the other hand are
the remuneration for the quantum of services rendered by persons whose output is
difficult to be measured such as remuneration paid to clerical of managerial or
supervisory staff. Ii is paid on time basis generally on monthly basis.
29
Why wages determination
Determination of the basic wage level in an organization is an
Important is question from all point view economic social political and moral. Wages
is the central point for all labor problems. It is important from the organization and the
employee point of view that wages claim the largest share of total cost of production.
Several other problems, important for the organization such as production capacity
efficiency of labor sale price of the commodity profits and industrial relations depend
upon this single factor. From employees point of view it is the question of their bread
though they do not live by the extent to which he is satisfied with the wages he is
getting though it is not the sale factor in a workers satisfaction.
Motivation comes after a worker is of the remuneration of employees before it can

think of providing incentives through promotions change in the nature of job etc. The
management should consider the problem very carefully and peacefully by analyzing
the various factors scientifically and psychologically and with human approach.
DEFINITION
Wage is the remuneration paid for the service of the labor in production,
periodically to an employee/worker. Wages usually refer to the holy rate or daily rate
paid to such groups as production and maintenance employees ( blue-collar workers)
on the other hand , salary normally refers to the weekly or monthly rates paid to
clerical, administrative & professional employees (white-collar workers). The wage
levels represent the money an average worker makes in a geographic area or in his
organization. It is only an average specific market or firms & individual wages can
very widely from the average. The term Wage Structure is used to describe
wage/salary relationships within a particular grouping. The grouping can be according
occupation or organization such as wage structure of craftsman (Carpenters,
Mechanics, Brick layers) etc.
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WAGE
I.L.O defined the term wage as The remuneration paid by the employer for
the services of hourly, daily, weekly and fortnightly employees. It also means that
remuneration paid to production and maintenance or blue-collar employees. (Blue-
collar workers)
SALARY
The term SALARY is defined as The remuneration paid to the clerical and
managerial personnel employed on monthly or annual basis. (White-collar workers).
Wage/ Salary can be defined As the direct remuneration paid to an employee
compensating his services to an organization.
Wages definition and meaning

The term wages has been defined very comprehensively and exhaustively in the
act. As per section 2a. Wages means all remuneration whether by way of salary
allowances or other wise, expressed in terms of money or capable of being so
expressed or implied were fulfilled be payable to a person employed in respect of his
employment or of work done is such employment and includes .
1. Any remuneration payable under any award or settlement between the parties or
order of a court.
2. Any remuneration to which the person employed is entitled in respect of overtime
work or holidays or any leave period.
3. Any additional remuneration payable under the terms of employment whether
called as bonus or by any other name.
4. Any sum which by reason of the termination of employment of the person
employed is payable under any law contract or instrument which provides for the
payment of such sum, whether with or without deductions, but does not provide
for the time within which the payment is to be made.
5. Any sum to which the person employed is entitled under any scheme framed
under any law for the time being in force.
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But does not include
Any bonus whether under a scheme of profit sharing or otherwise which does not
form part of the remuneration payable under the terms of employment or which is
not payable under any awards or settlement between the parties of order of a
court.
The value of any house accommodation or of the supply of light water medical
attendance or other supply for the light, water, medical attendance or other
amenity or of any service excluded from the computation of wages by a general or
special order of the state government.
Any contribution paid by the employer to any pension or provident fund, and the
interest which may have accrued thereon.
Any traveling allowance or the value of any traveling concession.
Any sum paid to the employed person to defray special expenses entailed on him
by the nature of his employment or
Any gratuity on the termination of employment in cases other than those specified
in sub clause.
OBJECTIVES OF WAGE AND SALARY ADMINISTRATION
The objective of wage and salary administration is numerous and sometimes

conflict with each other.
1. To acquire qualified competent personnel

2. To retain the present employees
3. To secure internal and external equity
4. To ensure desired behavior
5. To keep labor and administrative costs
6. To protect in public as progressive employers and to comply with the wage
legislations
7. To pay according to the content and difficulty of the job and in tune with
the effort and merit of the employees
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8. To facilitate payroll administration of budgeting, wage and salary control
9. To simplify collective bargaining procedures and negotiations
10. To promote organization feasibility.
SYSTEMS TO ACHIVE THE OBJECTIVES

1. JOB EVOLUTION
It is the process of determining relative worth of jobs. It includes selecting
suitable job evolution techniques. Classifying jobs into various categories and
determining relative value of jobs in various categories.
2. WAGE AND SALARY RANGES
Overall salary range for all the jobs in an organization is arranged. Each job
grade will be assigned salary range. These individual salary ranges will be
fitted in to an overall range.
3. WAGE AND SALARY ADJUSTMENTS
Overall salary grades of the organization may be adjusted based on the data
and information collected about the salary levels of similar organizations.
Individual salary levels may also be adjusted based on the performance of the
individual employees.
PRINCIPLES OF WAGE AND SALARY ADMINISTRATION
Wage and salary plans and policies should be sufficiently flexible.
Job evaluation must be done scientifically
Wage and salary administration plans must always be consistent with overall
organizational plans and programs.
Wage and salary administration plans and programs should be in conformity
with the social economic objectives of the country like attainment of equality
in income distribution and controlling inflationary trends.
Wage and salary administration plans & programmers should be responsive to
the changing local & national conditions.
These plans should simplify & expedite other administrative processes.
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ELEMENTS OF WAGE AND SALARY SYSTEMS
Henderson identified the following elements of wage and salary

System.
1. Identifying the available salary opportunities, their costs, the estimation the
worth of its members of these salary opportunities and communicating them to
employees.
2. Relating salary to needs and goals
3. Developing quality, quantity and time standards relating to work and goals.
4. Determining the effort necessary to achieve standards
5. Measuring the actual performance
6. Comparing the performance with the salary received
7. Measuring the job satisfaction gained by the employees
8. Evaluating the un-satisfied wants and reached goals of the employees
9. Finding out the dis-satisfaction arising from unfulfilled needs and un-attained
goals
10. Adjusting the salary levels accordingly with a view to enabling the employees
to reach an UN reached goals and fulfills the unfilled needs;
Wage variations.The relative difference in wage levels is called wage variations.
There may be three types of variations in wage rates
1. Time variations.Wages may vary from time to time according to the economic
conditions of the country. In slump period, the wage rates may be cut whereas the
inflationary pressures may hike the wage rates. Price and wage indices are sometimes
prepared for the two periods to measure the variations in prices and wages and
adjusted accordingly.
2. Regional variationsThese are different wage rates in different regions for the
same work in the same industry. Cotton textile mills in UP pay lower wages to their
workers in comparison to the wages paid in cotton textile mills in Maharashtra or
Gujarat. This may be because of the several reasons such as economic development of
the region, demand and supply of the workers, cost of living index and standard of
living etc.
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3. Industrial variations.Wage rates may differ from industry to industry. One
industry may pay more to its workers in the same region for similar work. Various
factors such as demand and supply of skilled labor nature of work and working
conditions in the industry place of industry in the national economy etc influence the
wage rates.
FACTORS INFLUENCING WAGE AND SALRY STRUCTURE
AND ADMINSTRATION
1. The organizations ability to pay

2. Supply and demand of labor
3. The prevailing market place
4. The cost of living
5. Living wage
6. Productivity
7. Trade unions bargaining power
8. Job requirements
9. Managerial attitudes
10. Psychological and Sociological Factors
11. Levels of Skills available in the market
Factors affecting wage rates

These are several factors which influence the wage rates. The variations in
wage structure in various industries are the results of these factors. Some important
factors are
1. Demand and supply.
The wage rates are fixed by the demand and supply position of the workers
in the labor market. If labor is in short supply, the workers will offer their services
only if they are paid well. On the other hand, labor may be available at cheaper rates
if their supply is in plenty.
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2. Bargaining power.
Wages also depend to a considerable extent on the relative bargaining power
the labor unions and the employees. Where labor unions are strong enough the wages
will be determined at a higher level in comparison to other units where unions are
weak.
3. Cost of living. Progressive employers do not leave the wages to be determined
by the blind forces of demand and supply. They take due notice of the cost living for
the workers at that place and try to fix the wages as to ensure a decent living wage to
the workers. Cost of living varies under inflationary and deflationary pressure. Where
employers do not show enough awareness, labor unions, if strong come out with a
demand of wage adjustment according to the cost of living index number
4. Condition of product market.
The wage levels will be influenced by the degree of competitive prevailing in the
market for the product of the industry. If it is a perfect competitive market to the total
output. But in any given industry or occupation, wages may not reach this level if
imperfect competition exists in the product market.
5. Comparative wages.
Wages paid by other firms in the same market for similar work also influence the
wage levels. Wages rates must also be in consistent with the wages paid by other
firms in the same industry. The comparative wages will increase the job satisfaction
among the workers.
6. Ability to pay.
Wage rates are influenced by the ability of industry or firm to pay its workers. Those
firms which are earning huge profits may naturally afford much better wage rates and
more facilities to its workers in comparison to those which are earning only marginal
profits.
7. Productivity of labor.
Productivity of labor is considered to be the job requirements. If a job
Requires higher skill greater responsibility and risk the worker placed on the job will
naturally get higher wages in comparison to other jobs which do not require the same
degree of skill responsibility or risk.
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8. Job requirements.
A worker is compensated according to the job requirements. If a job requires higher
skill, greater responsibility and risk, the worker placed on that job will naturally get
higher wages in comparison to other jobs which do not require the same degree of
skill responsibility or risk.
9. Government policy :Since the bargaining power of the workers is not enough
to ensure fair wages in all industries the government has to interfere in regulating
wage rates to guarantee minimum wages rates in order to cover the essentials of a
decent living.
10. Goodwill of the company
A few employers want to establish themselves as good employer in the society and fix
higher wages for their workers. It attracts qualified employees.
ADMINISTRATION OF WAGE AND SALARIES:
Wage and salary administration should be controlled by some proper agency.

This responsibly may be entrusted to the personnel department or to some job
executive. Since the problem of wage and salary is very delicate and complicated, it is
usually entrusted to a committee composed of high rank executives representing
major line organizations. The major functions of such committee are,
1. Approval/Recommendation to management on job evaluation methods and

findings
2. Review and Recommendation of basic wage and salary structure
3. Help in the formulation of wage policies from time to time
4. Co-ordination and review of relative department rates to ensure conformity
5. Review of Budget estimates for wage and salary adjustments and increases.
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In India after independence some new related words to wages.
Statutory Minimum wage: According to the provisions of the Minimum wages
act-1948, ones the rates of such wages are fixed; it is the obligation of the employer to
pay them, regardless of his ability to pay. Such wages are required to be fixed in
certain employments where sweated labor, or where there is a great chance of
exploitation of labor.
Basic Minimum Wage: It is the wage, which is to be fixed in accordance with

the awards and judicial pronouncements of industrial tribunals, national tribunals and
labor courts. They are obligatory on the employers.
A Report of the committee on fair wages, et up by the Government in
1948.According to this committee, the Minimum wage should represent the lower
limit of a fair wage, the next higher level is the fair wage, and the highest level of the
fair wage is the living wage.
1. Minimum wage: It has been defined by the committee as the wage which must
provide not only for the bare sustenance of life, but for the preservation of the
efficiency of the worker. For this purpose, the minimum wage must provide for some
measure of education, medical requirements and amenities. In other words, a
minimum wage should provide for the sustenance of the workers family, for his
efficiency, for the education of his family, for their medical care and for some
amenities.
2.Living Wage: The committee was defined a Living Wage as one which should
enable the earner to provide for himself and his family not only the bare essentials of
food, clothing and shelter but a measure of frugal comfort, including education for his
children. Protection against ill-health, requirements of essential social needs and a
measure of insurance against the more important misfortunes, including old age.
The goal of living wage was to be achieved in three stages. In the first stage, the
wage to be paid to the entire working class was to be established and stabilized. In the
second stage, fair wages were to be established in the community-cum-industry. In the
third stage, the working class was to be paid the living wage.
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3. Fair Wage: According to the committee on fair wages, it is the wage which is
above the minimum wage but below the living wage. The lower limit of the fair
wage is obviously the minimum wage; the upper limit is set by the capacity of the
industry to pay. Between these two limits, the actual wage should depend on
considerations of such factors as:
a) The productivity of labor
b) The prevailing rates of wages in the same or neighboring localities;
c) The level of national income and its distribution;
d) The place of industry in the economy of the country.
The need based minimum wage
The Indian labor conference at is 15 th session held in july1957, suggested
that minimum wage fixation should be need based and should meet the minimum
needs of an industrial worker. For the calculation of the minimum wage the
conference accepted the following norms and recommended that the should guide all
wage fixing authorities including the minimum wage committee, wage boards and
adjudicators
1. The standard working family should be taken to consist of 3 consumption units
for the earner the earnings of women; children and adolescents should be
disregarded.
2. The minimum food requirements should be calculated on the basis of the net
intake of 2,700 calories, as recommended by Dr. Akroyd, for an average Indian
adult of moderate activity.
3. The clothing requirements should be estimated at a per capita consumption of 18
yards annum, which would mean, for an average workers family of four a total of
72 yards.
4. In respect of housing the norms should be the minimum rent charged by the
government in any area for houses provided under the subsidized
5. housing scheme for low income groups and
6. Fuel, lighting and other miscellaneous items of expenditure should constitute 20
per cent of the total minimum wage.
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Ever since the I.L.C made its recommendations on the need based minimum wage,
attempts were made by several government and private agencies and trade union
organizations to work out is monitory equivalent. These estimates have varied
considerably.
TYPES OF WAGES
1) TIME RATE
2) PIECE RATE
3) BALANCE (or) DEBT METHOD
Time rate: This is the oldest and the most common method of fixing wages. Under
this system, workers are paid according to the work done during a certain period of
time, at the rate of so much per hour, per day, per week, per fortnight or per month or
any other fixed period time. The essential points is that the production of a worker is
not taken into consideration in fixing the wages; he is paid at the rate as soon as the
time contracted for is spent.
Piece Rate: Under this system, workers are paid according to the amount of work
done or the number of units completed, the rate of each unit being settled on advance,
irrespective of the time taken to do the task.
This doesntt mean that worker can take any time to complete a job because if his
performance far exceeds the time, which his employer expects he would take, the
overhead charge for each unit of article will increase. There is indirect implication
that worker should not take more than the average time. If he consistently takes more
time than the average time, he does it at the risk of losing his job.
Balance or Debt Method: this is a combination of piece rate and time rates. The
worker is guaranteed an hourly or a day-rate with an alternative piece rate. If the
earnings of a worker calculated at the piece rate exceed the amount, which he would
have earned if paid on time basis, he gets credit for the balance, i.e., the excess piece
rate earnings over the time rate earnings.
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If his piece rate earnings are equal to his time rate earnings, the question of excess
payment does not arise. Where piece rate earnings are less than time rate earnings, he
is paid on the basis of the time rate; but the excess, which he is paid, is carried
forward as a debt against him to be recovered from any future balance of piecework
earnings over timework earnings. This system presupposes the fixation of time and
piece rates on a scientific basis.
WAGE DIFFERENTIALS
1. Occupation Differentials i.e., based on skills
2. Inter Firm Differentials
3. Inter Area (or) Regional Differentials
4. Inter Industry Differentials
5. Based on Sex
THEORY OF WAGES
Wages are fixed mainly as a result of individual bargaining, collective
bargaining or by public or state regulation. Wages are determined has been the subject
of several theories of wages.
1. Subsistence Theory
2. Wage fund Theory
3. The surplus Value Theory of Wages
4. Residual Claimant Theory
5. Marginal Productivity Theory
6. The Bargaining Theory of Wages
7. Behavioral Theories
1. SUBSISTENCE THEORY
It is also known as IRON LAW OF WAGES was propound
By DAVID RICARDO. This theory (1817) states, The labors are paid to enable them
to subsist and perpetuate the race without increase of diminution.
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2. WAGE FUND THEORY
Developed by Adam Smith States as Basic assumption was that Wages are paid out
of a pre-determined fund of wealth which lay surplus with wealthy persons as a
result of savings. The demand for labor and the wages that could be paid them were
determined by the size of the fund. This fund could be utilized for employing
laborers for work. If the fund was large, wages would be high; if it was small wages
would be reduced to the subsistence levels.
3. THE SURPLUS VALUE OF THEORY OF WAGES

This theory owes its development to Karl Marx (1818-1883)
States, The labor was an article of commerce, which could be purchased on payment
of subsistence price.
4. RESIDUAL CLAIMANT THEORY
Francis A. Walker propounded this theory. According to him
There were 4 factors of production/business activity, viz., land, labor, capital and
entrepreneurship. Wages represent the amount of value created in the production,
which remains after payment has been made for all these factors of production. In
other words, labor is the residual claimant.
5. MARGINAL PRODUCTIVITY THEORY
Developed by Phillips Henry Wick Steed (England) and John
Bates Clark (USA) states that Wages are based upon an entrepreneurs estimate of
the value that will probably be produced by by the last or marginal worker. Other
words Wages are depending upon the demand for, and supply of labor. Consequently,
workers are paid what they economically worth. The results that the employer has a
large share in profit, as has no to pay to the non-marginal workers. As long as each
additional worker contributes more to the total value than the cost in wages, it pays
the employer to continue hiring; where this becomes uneconomic, the employer may
resort to superior technology.
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6. THE BARGAINING THEORY OF WAGES
John Davidson propounded this theory. Under this theory,
The relative bargaining cover of workers or trade unions and of employers determines
wages. When a trade union is involved, basic wages, fringe benefits, job differentials
and individual differences tend to be determined by the relative strength of the
organization and the trade union.
7. BEHAVIORAL THEORIES
Many behavioral Scientists like Marsh and Simon, Robert Durbin
Eliot Jacques has presented their views on wages and salaries, on the basis of research
studies and action programmers conducted by them. Briefly such theories are;
A. The Employees Acceptance of a Wage Level
This type of thinking takes into consideration the factors which
May include an employee to stay on with a company. The size and prestige of the
company, the power of the union, the wages and benefits that the employee receives
in proportion to the contribution made by him all have their impact.
B. The Internal Wage Structure
Social norms, traditions, customs prevalent in the organization
And psychological pressures on the management, the prestige attached to certain jobs
in terms of social status, the need to maintain internal consistency in wages at the
higher levels, the ratio of the maximum and minimum wage differentials, and the
norms of span of control, and demand for specialized labor all affect the internal wage
structure of an organization.
C. Wage and Salaries and Motivators:
Money often is looked upon as means of fulfilling the most basic needs of man. Food,
clothing, shelter, transportation, insurance, pension plans, education and other
physical maintenance and security factors are made available through the purchasing
power provided by monetary income- wages and salaries. Merit increases, bonuses
based on performance, and other forms of monetary recognition for achievement are
genuine motivators. However, basic pay, cost of living increases, and other wages
increases unrelated to an individuals own productivity typically may fall into
maintenance category.
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Wage and salary policy
Wage policy...
1. Provide him with work and, in such other cases and circumstances the term wage
policy refers to legislation or government action undertaken to regulate the level
or structure of wages or both for the purpose of achieving specific objectives of
social and economic policy. It includes all systematic efforts of the government in
relation to a national wage system. Social objectives of wage policy aims at
eliminating the exceptionally low wages and exploitation of workers, protection of
workers from inflation and price rise, fixation of a fair wage system, ensuring
good standard of living for workers and thus increasing the economic welfare of
the community as a whole. The economic objectives of wage policy aim at
attaining the economic welfare structure conductive to the economic Development
of the country.
The social and economic aspect of wage policy are inter related measures
inspired by social considerations have economic effects and actions designed to
achieve specific economic results has social implications.
Objectives of a wage policy
The international labor organization has stipulated the following objectives
of a wage policy in a development country
1. To abolish malpractices and abuses in wage payment.
2. To set minimum wages for workers whose bargaining power is weak because
they are either unorganized or inefficiently organized, accompanied by separate
measures to promote the growth of trade unions and collective bargaining.
3. To obtain for the workers a just share in the fruits of economic development by a
appropriate measures to keep workers expenditure on consumption good in step
with available supplies so as to minimum inflationary pressure.
4. To bring about a more efficient allocation and utilization of manpower through
wage differentials and where appropriate, system of payments by results.
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In India the objectives of a national wage policy may be enumerated as follows
1. Improvement in existing wage structure.
2. Export promotion
3. Lower cost of production
4. Incentive system
5. Proper wage differentials
6. Guarantee of minimum wage
7. Fixation of wage ceilings
8. Good industrial relations
9. Similar to other firms
10. Good selection and placement of workers.
11. Hedge against inflation
According to the payment of wages act, 1936

Obligations of employers
1. Responsibility for payment of wages
Every employer is primarily responsible for payment of wages to his employees
besides the manager of a factory, or the person responsible for supervision and control
of an industrial or other establishment, or the person nominated by the employer, is
also responsible for payment of wages to the employees of the factory or
establishment.
2. Fixation of wage periods: Every employer or the person responsible for
payment of wages should if the wage period which may be per day per week or per
month etc month etc. but in no case it should exceed one month.
3. Time of payment Every employer manager should make timely payment of
wages. If the number of persons employed in an establishment is less than 1000, then
wages must be paid within 7 days of the expiry of the wage period, and in other cases
within 10 days of the expiry of the wage period.
Where the employment of any person is being terminated, his wages should be paid
within 2 days of the date of termination.
Besides, all payments of wages should be made only on a working day.
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4. Mode of payment The employer should pay the wages in cash i.e. in current
coins or currency notes. However, wages may be paid either by cherub or by crediting
in employees bank account, after obtaining his written consent.
Payment of wages in case of death of an employee
In case of death of an employee, or in case his where about are not known all
amounts payable to him as wages shall be either paid to his nominee or, where there is
no nominee, or amount cannot be paid to the nominee for any reason, it shall be
deposited with the prescribed authority, whereupon the employer shall be discharged
of his liability to pay those wages.
Display of notice The employer manager should ensure that a notice containing
the abstracts of the act and the rules made there under is displayed at a prominent
place in the factory establishment. The notice shall be in the prescribed form. In
English and in the local language of the majority of the persons employed.
According to minimum wages act, 1948
Fixation of minimum rates of wages.
The state government is empowered to fix minimum rates of wages for different
classes of employees skilled, unskilled, clerical, supervisory, etc, employed in any
scheduled employment and to review and revise the Same from time to time, the
interval between two revisions not exceeding five years, considering the change in
price index and dearness allowance.
Fixation of working hours, etc
In regard to any scheduled employment in respect of which minimum rates of
wages have been fixed the government may
a. Fix the number of working hours consulting a normal working day, inclusive of
one or more intervals.
b. Provide for a rest day with wages, in every period of 7 days and
c. Provide for payment for work on a rest day at a rate not less than the overtime
rate.
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Wages for two or more classes of work
Where an employee does two or more classes of work, to each of which a
different minimum rate of wages is applicable, the employer shall pay to such
employee in respect of the time respectively occupied in each such class of work,
wages at not less than the minimum rate in force in respect of each such class.
Obligations of employees
The various obligations of an employer under the act are follows.
1. Payment of minimum wages
The employer is bound to pay every employee engaged in scheduled under him
wages at a rate not less than the minimum wages rates of wages fixed for that class of
employees in that employment without making any deduction there from except those
permitted under the payment of wages act.
Where an employee works on any day for a period less than the requisite
number of hours constituting a normal working day, he shall still be entitle to receive
wages for the full normal working day, except
Overtime wages: If an employee works on any day in excess of the normal
working hours, the employers shall pay to him overtime wages for every hour or for
part of an hour, so worked in excess, at the rate prescribed under this act or under any
other law, whichever is higher. As per factories act overtime wages are to be paid a
twice the normal rate of wages.
Authorized deduction from wages
Section 7 to 13 of the act deal with permissible and non-permissible
Deduction which can be made from the wages of the worker.
Meaning of authorized deduction as per section 7
1. Any loss of wages resulting from the imposition of the penalties of
2. Following nature are termed as authorized deductions.
3. The with holding of increment or promotion including the stoppage of increment
at an efficiency bar.
4. The demotion to a lower post or time scale or to a lower stage in scale or
Suspension. The wages of an employed person shall be paid to him without
deduction of any kind except those which are authorized by or under this act.
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5. Every payment made by an employed person to his employer or agent is deemed
to be deduction.
The following deduction are permitted..
1. An employed person can be fined only for acts and omissions which are specified
in a list which is approved by the state government or the prescribed authority.
2. The list must be exhibited in the place of work.
3. Before the fine is imposed on an employed person he must be given an
Opportunity of showing cause for fine.
4. The total amount of fine which can be imposed upon a person in any way period
must not exceed an amount equal to three paisa in the rupee of the wages payable to
him during the wage period.
5. No fine can be imposed on a person who is below the age of 15years.
Deductions for absence from duty Deductions from wages are permitted for absence
from duty. Absence from duty means absence from the place where the employed
person is required to work. If the employed person though present at such Place
refuses to carry out his work, in pursuance of a stay in strike or for any other cause
which is not reasonable, he is deemed to be absent from duty. The ratio between the
amount of such deduction and the wages payable must be exceed the ratio between
the amount of such deduction and the wages payable must not exceed the ratio
between the period of absence and the wage period.
The management deducted wages of the employees treating the period of
leave applied as absence from duty for the purpose of participating in an agitation is
unauthorized; therefore the absentee employees had no right to compel payment of
wages for the period of unauthorized absence.
In mineral miners union v. kudremukh iron ore co,. Ltd it was held by the
Karnataka high court that deduction of wages for the period of illegal strike is
justified.
Deduction for damage or loss.. Deductions from wages are permitted for damage or
loss of goods expressly entrusted to the employed person for custody, or for loss of
money which he is required to account, where such loss is directly attributable to his
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neglect or default. A deduction shall not be made until the employed person has been
given an opportunity of showing cause against the deduction
A deduction shall not exceed the amount of damage or loss caused
to the employer. All deductions and realization thereof must be recorded in a register.
Deductions for recovery of advances and overpayment of
wages/loans..
Deductions are permitted for recovery of advances for adjustments of over payment of
wages.
1. Recovery of advance of money given before the employment began shall be made
from the first payment of wages in respect of a complete wage-period, but no
recovery shall be made of such advances given for traveling expenses.
2. Recovery of advances of wage not already earned shall be subject to rules made
by the state government, and
3. Deduction for recovery of loans granted under clause of sub-section 7 shall be
subject to any rules made by the state government.
Deductions for income-tax payable by the employed person
Deductions can be made for income-tax payable by an employed person.
Orders of the court If any deduction is directed by the court a decree against the
employed person it must be done.
Provident fund (PF) Deductions may be made of the contributions payable by the
employed person to the provident fund.
Deductions for payments to co-operative societies and insurance schemes
Deductions may be made for payments to co-operative societies or to a scheme of
insurance maintained.
Deductions for house accommodation Deduction made for house accommodation
supplied by the employer or by the government or any housing board set up under any
law in force.
Acceptance of counterfeit base coin Deduction for recovery of losses sustained by a
railway administration o a account of acceptance by the employed person of
Counterfeit or base coins or mutilated or forged currency notes.
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Deduction for recovery of losses on account of failure to invoice or to collect
Deductions for recovery of losses sustained by a railway
administration on account of the failure of the employed person to invoice, to bill, to
collect or to account for the appropriate charges due to that administration whether in
respect of fares, freight, demurrage, wharf age or darn age or in respect of sale of food
in catering establishments or in respect of sale commodities in grain shops or
otherwise.
Deduction for incorrect rebates or refunds
Deductions for recovery of losses sustained by a railway administration on
account of any rebates or refunds incorrectly granted by the employed person where
such loss in directly attributable to his neglect or default.
Other deductions: Deductions made with the written authorization of the
employed person or the president or secretary of the registered trade union or which
the employed person is a member for contribution to the national defense or any
defense savings scheme.
Deductions made with the authorization of person employed for
Payment of any premium as his life insurance policy or for the purchase of the
securities of the government of India or for being deposited in the post office savings
bank.
Illegal deductions
Any deductions other than those authorized under sections 7 to 13 of the act
would constitute illegal deductions.
1. When an employer deducts from the wages of an employed person any amount of
damage to or loss of goods expressly entrusted to him for custody or for loss of
money for which he is required to account, where
2. Such damage or loss is not directly attributable to his neglect or default.
3. Where deductions are made from the wages of the person employed for tools or
raw materials supplied to him required for the purpose of employment. Such
deduction would constitute illegal deductions.
50
4. Deductions made from the wages of person employed for recovery of losses
sustained by railway administration on account of any rebates or refunds
incorrectly granted by the employed person where such loss is not directly
attributable to the neglect or default of an employed person.
5. Deductions made for payment of any premium to life insurance policy without the
written authorization of the employed person
Maintenance of register and records Every employer shall maintain such register
and records giving particulars of persons employed by him work performance by
them the wages paid to the deductions made from their wages the receipts given by
them and other particulars in forms prescribed under this act.
Wage boards
Wages for workers engaged in unorganized industries are fixed and revised under the
minimum wages act 1948. But for organized industrial workers, therefore are a
number of well established procedures and practices for wage fixation and wage
revision. These are settlement in conciliation of wage disputes, collective bargaining
at the plant level, bipartite wage revision committees in several industries,
adjudication and arbitration etc. lately wage boards have also been there on the
scheme.
Wage board and their composition
Wage board is a tripartite body having members representing the interests of
labor management and the public. The representatives and management are nominated
in equal numbers by the government with consultation with and consent of the major
central organizations.
Generally the representatives of labor an management are selected from the particular
industry being investigated. These boards are chaired by a government nominated
member representing the public. The wage boards function industry wage differential,
cost of living compensation regional wage differentials gratuity hours of work etc.
51
Objectives/functions of wage boards
The main objectives/functions of the wage boards are as follows
1) To determine which categories of employer are to be brought within the scope of
the wage fixation. Employee will cover only the workmen as defined in the
industrial disputes act.
2) To work out wages structure based on the principle of fair wages as formulated by
the committee on fair wages, 1948.
3) The system of payment by results
4) To evolve a wage structure based on the requirements of social justice.
5) To evolve a wages structure based on the need for adjusting wage differentials in a
manner to provide incentives to workers for a advancing their skill.
6) To work out the principle that should government bonus to workers in respective
industry.
The above items are very common which are included in terms of reference.
In addition to these are several other functions which are asked to be deal with are
bonus, gratuity, demands in respect of payments other than wages hours of work
interims relief etc. some wage boards have been required to take into account the
special features of the industry.
Thus wage boards have to deal with a large number of subjects out the
main issue before them is the fixation or revision of wage scales on industry basis.
Wage boards while evolving a wage structure consider the following facts
1. The need of the particular industry in a developing economy including the need
for maintaining and promoting exports
2. The requirements of social justice it demands that a worker should get a fair
wage necessary to sustain himself and his family in a reasonable degree of comfort
and that he is not exploited.
3. The need of adjusting wage differentials which is in relation to occupational
differentials inters firm differentials, regional or inters area differentials inter industry
differentials and based on sex. In such a manner as to provide incentives to workers
for a advancing their skill.
52
In determining the fair wages the board has to consider the following
factors like the degree of skill required for work the fatigue involved the training
experience of the worker the responsibility undertaken the mental and physical
requirements for better results.
Equal Remuneration Act1965
The act came into force from 11th Feb. 1976. It provides for the payment of equal
remuneration to men and women workers. It also provides for prevention of
discrimination on the grounds of sex, against women in the matter of employment and
foe matters connected there with. Same wok or work of a similar nature means
application of same skills and efforts and responsibilities, being performed under
similar working conditions by men and women. Every employer shall pay the equal
remuneration to men and women workers for performing the same work or work of
similar nature.
No employer shall make discrimination against women at the time of recruitment

for the same work of work of a similar nature, except such work is prohibited or
restricted under any law. The act provides for the promotion of employment
opportunities for women by setting up of one or more advisory committees in which
one half of the members are women.
The payment of Bonus Act :
The payment of bonus act came into force from 29/5/1965. This act provides
for the payment of bonus to persons to persons employed in certain establishments
and for matters connected there with. The act covers the employees drawing salary or
wages not exceeding Rs.2500/- per month.
It shall not applicable to apprentices. Salary includes basic wages and D.A.
53
The act requires 67% of the available surplus to be allotted for the
payment of bonus in relation to a company, which has not made the arrangements
prescribed under income tax act for the declaration and payments of dividends
payable out of its profit within Indian and other cases 60% of such available surplus.
Every employer shall be bound to pay every employee a minimum bonus, which shall
be 8.33% of the salary or wage earned by him during the accounting the year or
Rs.100/- which ever is higher , whether or not the employer has any allocable surplus
in that accounting year. The maximum payment of bonus Rs.20% if his salary or
wages.
54
CHAPTER-V
DATA ANALYSIS &

INTERPRETATION
55
1. Employees salary/wage on the basis of time
OPINION RESPONDENTS %
Daily 0 0
Weekly 35 35%
15 Days 0 0
One month 65 65%
Interpretation: From the above results it is clear that most of the surveyed people are
receiving wages on the monthly basis it has response around 65% followed by weekly
wages has response around 35%
56
2. Employees receives salary on the date of
Before 7th 89 89%
By 10th 11 11%
On 15th 0 0
th
In between 15 to 0 0
20th
receiving wages before 7th has response around 89% and followed by 10 th of the every
month has response about 11%..
57
3. Mode of payment is used in the company
By Cash 15 15%
By Bank 85 85%
By Cheque 0 0
accepted that the mode of payment is By Bank has response around 85% and
followers says By Cash it has around 15%.
58
4. Employees wage include salary& allowances (Remuneration, HRA, PF,
TC, Medical, Gratuity, special Expenses)
Only Salary 0 0
Only Salary & Some 25 25%
Allowances like HRA,PF
Salary & All allowances 75 75%
accepted that they are receiving salaries & Allowances has a response of 75 % and
followers says that they receive salary and some allowances like HRA, PF has a
response of 25%.
59
5. It enables the employees salary deducted without any prior permission
OPINIO RESPONDENTS %
N
YES 0 0
NO 100 100%
saying that without their prior permission the employer didnt deducted from wages it
has a response fully i.e. 100%.
60
6. It enables the organization maintenance wages paid records
OPINOIN RESPONDENTS %
YES 95 95%
NO 5 5%
accepting that their company maintaining wage paid records has a response of
95%and followed only 5% people said no.
61
7. It enables deductions are made from employees salary/wage.
Recovery of advances 55 55%
Recovery of
60 advances
Over payment of wages 0 0
50
IT 4 Over payment
4%
PF 40 18 of wages 18%
HRA 12 12%
30
Insurance 6 IT 6%
Payment to co-operative ocieties 5 5%
20
10 PF
0
RESPONDENTS HRA
Insurance
Interpretation: From the above results it is clear that most of the surveyed people
have a response of wages are deducted from recovery advances 55%,
IT 4%, PF 18%, HRA 12%, Insurance 6%, and other operative services 5%.
8. It enables whether the organization displays an abstract of the wages Act and
the rule made there under at a noticeable place
YES 90 90%
NO 10 10%
62
accepted that in the company entrance the management providing notice board facility
on that it displays an abstract of the wages, it has a response of 90% yes and followed
by 10% people have a negative answer.
9. It enables when employees go for strike their wages deducted for more than
eight days.
OPINION RESPOMDENTS %
Strongly Agree 30 30%
Agree 70 70%
Disagree 0 0
63
Strongly Disagree 0 0
agreeing that their wages going to deduct, it has a response of agree 70%, and
strongly agree 30%.
10. It enables whether employees are unpaid (or) delayed wages,

unauthorized deductions & fines cleared within six months
OPINION RESPOMDENTS %
Agree 25 25%
Disagree 0 0
Strongly Disagree 0 0
64
80
70
Strongly Agree
60
50 Agree
40
30 Disagree
20
Strongly
10 Disagree
0
RESPONDENTS
Interpretation: From the above results it is clear that most of the surveyed people
are agreeing that delayed wages, unauthorized deductions & fines Cleared within
six months has a response strongly agree around 75%, agree 25%.
11. It enables the organization records are checked by inspector of factories
YES 90 90%
NO 10 10%
OPINION
YES
NO
65
strongly agreeing that in the organization wage records are checked by auditors, it has
a response around 90% yes and only 10% has a negative answer.
12. It enables if any fine is imposed on employee they are explained for the cause
of fine by the employer.
YES 95 95%
NO 5 5%
100
90
80
70
60
50 YES
40 NO
30
20
10
0
RESPONDENTS %
66
strongly accepting that they explained for the cause of fine has a response of 95 % yes
and followed only 5% with no answer.
13. It enables if fine is imposed in the employee recorded in a register.
YES 95 95%
NO 5 5%
67
strongly accepting that if any fine imposed on them it must be recorded in the register
has a response around 95% yes and remaining 5% has negative answer.
14. It enables when an employee is terminated, he is receiving his wages by-
Opinion Respondents %
Within one Week 10 10%
Below 15days 15 15%
After 15days 15 15%
After One Month 60 60%
60
50
Within one
Week
40
Below 15days
30
After 15days
20
After One Month
10
0
Respondents %
68
strongly accepted that if any person terminated, their wages mostly received after one
month has a response around 60%, after 15 days 15%, before 15 days 15% and finally
within one week has a response of 10%.
15. It enables employee satisfaction with their wages as compared to their work.
Heavily Satisfied 0 0
satisfied 65 65%
Dissatisfied 35 35%
Heavily Dissatisfied 0 0
Respondents Heavily
Satisfied
Satisfied
Dissatisfied
Heavily
Dissatisfied
satisfied with their present wages as compared to their work has a response of 65%
69
and rest of people have a response of 35% dissatisfaction.
16. It shows that employees are able to fulfill the basic needs of their family with
present wages
Agree 65 65%
Dis Agree 20 20%

Strongly Dis Agree 0 0
70
60
Strongly
50 Agree
40 Agree
30 Dis Agree
20
Strongly Dis
10 Agree
0
Respondents %
70
able to fulfill the basic needs of family with the present wages has a response around
agree 65%, disagree 20% and finally strongly agree 15%.
17. It enables when he work over time he receives the over time allowances
Agree 35 35%
Dis Agree 15 15%

Strongly Dis Agree 5 5%
strongly accepting that they are getting overtime allowances for over time work has a
response around strongly agree 45%, agree 35%, disagree 15%, disagree 5%.
71
18. It shows that the present pay scale structure is accordance with service
weight age.
YES 65 65%
NO 35 35%
70
60
50
40
YES
30
NO
20
10
0
RESPONDENTS %
accepting that pay scale structure is accordance with the service weight age has a
response around 65% yes and left of people 35% with no answer.
72
19. It enables that employees feel that management is paying a fair wage
YES 55 55%
NO 45 45%
accepted that management is providing fair wages to them has a response around 55%
yes and remaining people have 45% with negative response.
73
CHAPTER-VI
FINDINGS
74
FINDINGS
It is observed that many of the employees receiving their salary/ wage before
7th of the every month.
It is find out that the company mode of payment to the employees is through
bank.
It is find out that many employees are receiving wages/salary include all
allowances like P.F, HRA, DA, Medical.
It is find out that many employees salary/wage deducted from mainly recovery
advances, PF, HRA.
It is observed that many employees are accepting that if they go for strike their
wage/ salary deducted.
It is observed that employees unpaid (or) delayed wages, unauthorized

deductions & fines cleared within six months.
It is observed that before any fine is imposed on employee he is explained the

cause for fine by the employer.
It is observed that when an employee is terminated, he is receiving his wages

after next month.
It is observed that partial employees only feel that management paying fair
75
wage.
Almost many of the employees are not satisfied with the transport facilities
provided by the Organization.
CHAPTER VII
CONCLUSIONS,
SUGGESTIONS &
APPENDICES
CONCLUSIONS
76
Every organization to sustain in the industry has to satisfy some of the basic
needs and demands of its employees. Satisfied and motivated employees are
the source of achieving the organizational goals and objectives.
In order to use the maximum potential of the human resource, the organization
has to provide them with the best wages and salary.
Therefore every organization needs to update and improve the wage and salary
of the employees who make better contribution to production, quality and
productivity.
The workers get annul bonus not less than 20%, which is calculated on the
salary or wage of the worker.
Some of the employees are partially satisfied with the pay structure in the
Organization.
Almost many of the employees are not satisfied with the transport facilities
provided by the Organization
ZCL has proved itself to be the number one in the CEMENT industry. It has
pioneered in many new areas because of its inventory of professional and
skilled employees. And this was only possible by providing its employees,
good working conditions and welfare facilities.
ZCL is striving hard to reduce the limitations by practicing better wage and
salary administration interventions and make it even better place to work. It
is in the process of updating and modernizing the working conditions in tune
with the competitors. Finally, we can conclude that ZCLL is providing its
employees better wage/salary, which influence their performance and
productivity
77
SUGESTIONS
1. A company has to follow the salary transactions with the proper way.
2. There is a necessity of creating awareness about VRS to the employees.
3. The company has to improve transport facilities.
4. To motivate the workers company has to improve their salary/ wages.
5. Develop harmonious relations among the workers; build healthy relations

between management and trade unions.
6. It is recommended that the management of the ZCL should give top priority to
the areas of management such as machine capacity utilization, process control,
total quality management, pollution control, safety measure, cost control,
marketing & electronic data processing.
78
APPENDICES
DEPARTMENTWISE WAGE BOARD WORKMEN
NAME OF THE DEPARTMENT NO.OF EMPLOYEES
Personnel & Administration 12
Quality Control 24
Finance 04
Stores 08
Marketing 08
Raw mill or Material Feeding 39
Civil 01
Mechanical 82
Mines 63
Packing Plant 09
Instrumentation 08
Electrical 15
Cement Mill 01
Total 274
79
PERSONNEL MANAGEMENT STRUCTURE
The Organization Structure of ZUARI is simple and flat. The employees are
assigned based on their pay packages. These grades are not based on job
responsibilities. These may have different grades for reason like duration and
association with the company.
GRADES CADERS STAGE
M1 General Manager Top level
M2 Deputy Manager
M3 Senior Manager
M4 Manager
M5 Deputy Manager Middle level
M6 Assistant Manager
M7 Senior Manager
M8 Engineer Lower level
M9 Assistant Engineer
80
HR-Department CHART
In the Company
Bang lore
VP-
GM.IR Hyderabad
Manager- Yerraguntla
P&A
Asst. Mgr- Time

Welfare Office
Officer-
P&A Statutory Manage
Asst. r
Clerk
Officer
-Welfare Dept. Mgr-
Legal Security
Advis
81
QUESTNAIRE ON
WAGE AND SALARY ADMINISTRATION
Employ Name:
Age:
Designation:
Department:
Technical Skills:
1) Which of the following time basis do you receive your salary/ wage?
a) Daily b) weekly c) 15 days d) one month
2) By what date do you receive your salary?
a) Before 7th b) By 10th c) On 15th d) In between 15th &20th
3) Which of the following mode of wage payment is used?
a) By cash b) By bank c) By cheque
4) Does your wage include your salary& your allowances? (Remuneration,

HRA, PF, TC, Medical, Gratuity, special
Expenses)
a) Only salary b) salary & some allowances like HRA, PF
c) Salary & all allowances given
5) Are you deducted any amount from your salary without your prior
Permission?
a) Yes b) No
6) Does your organization maintenance wages paid in records?
a) Yes b) No
7) Which of the following deductions are made from your salary?
82
a) Recovery of advances b) Over payment of wages
c) IT d) PF
e) Payment of co-operative societies f) Insurance
g) HRA
8) Does your organization display an abstract of the wages Act and the rules
made there under at a noticeable place?
a) Yes b) No
9) When you go for strike is your wage deducted for more than eight days?
a) Strongly Agree b) Agree

c) Strongly Disagree d) Disagree
10) Are you unpaid (or) delayed wages, unauthorized deductions & fines
Cleared within six months?

11) Does your organization records are checked by inspector of factories?
a) Yes b) No
12) Before any fine is imposed on you, are you explained the cause for fine?
a) Yes b) No
13) Are the fine imposed on you recorded in a register?
a) Yes b) No
14) When an employee is terminated , is he receiving his wages by
a) That day itself b) Second working day

c) After 15 days d) After one month
15) Are you satisfied with your wages as compared to your work?
a) Heavily Satisfied b) satisfied

c) Dissatisfied d) Heavily Dissatisfied
83
16) Are you able to fulfill the basic needs of your family with present
Wages?

17) When you work over time do you receive the over time allowances?

18) Is the present pay scale structure is accordance with service

weight age?
a) Yes b) No
19) Do you feel that management is pays in a fair wage?
a) Yes b) No
Employee signature
84
BIBLIOGRAPHY
Essentials of Human Resource Management & Industrial Relations
P.SUBBA RAO
Personnel Management
C.B.MAMAORIA,
S.V.GANKAR
Dynamics of Industrial Relations

SHARMA
Industrial relations Moral arora
Web site: www.zcltd.com

www.google.com
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A

Chapter-3 .Includes Mission, vision, values of ZUARI CEMENT LIMITED

Chapter-4.Gives the description of Wages and Salary Administration and its

To study and analyze the effectiveness of Wage and Salary Administration in

To study the implementation of Wage and Salary Act.

To review the policies and agreements of wages and salary administration in

To identify which factors affecting on Wage and Salary Administration while

The study enables me to understand the working of a personnel department in

Methodology includes a systematic way of collecting the data through sample

Primary data is collected in order to avoid any mistakes due to

Secondary data is collected from the companies reports, manuals and

2. Time factor is the main constraints for the study

The existence of modern civilization with out cement is difficult to imagine in

There are different verities of cement based on different consumptions according to

1) ORDINARY PORTLAND CEMENT (OPC)

3) PORTLAND BLAST FUNACE SLAG CEMENT (PBSFC)

4) WHITE CEMENTS: Basically it is OPC-clinker using fuel oil (instead of

OIL WELL CEMENT

RAPID HARDENING PORTLAND CEMENT:

DIFFERENT TYPES OF PROCESSES:

HOW IS CEMENT MADE?

The company ZUARI AGRO CHEMICAL LIMITED was incorporated on 12 th may

ZUARI CEMNT was a division of ZUARI INDUSTIES LIMITED. The

The company is also engaged in Trading Activities in cement

Coming to the Working Environment of ZUARI

ZUARI CEMENT FACTORY is providing following necessary

FIRST AID APPLIANCES

Many recreational facilities have been provided by the management to their

SPORTS AND GAMES

CO-OPERATIVE STORES / RATION SHOP

1 The management is providing as per payment of gratuity act 1972.

ADVANCES ISSUED BY THE COMPANY:

LEAVES WORKERS EXCUTIVES

CORPORATE MARKETING OFFICE

ZUARI CEMENT corporate marketing office is at CHENNAI (TAMIL NADU) and

HYDERABAD ---------- Andhra Pradesh

SHIFT DURATION LUNCH or DINNER

SHIFT B 2:00 P.M to 10:00 P.M 7:30 P.M to 8:00 P.M

REVIEW OF THE LITERATURE ON

WAGES & SALARY ADMINISTRATION

From management point of view, wages and salaries represent a

One of the most important and difficult problem of management is that of

Wage is the remuneration paid to an employee as compensation for the

Motivation comes after a worker is of the remuneration of employees before it can

Wages definition and meaning

OBJECTIVES OF WAGE AND SALARY ADMINISTRATION

The objective of wage and salary administration is numerous and sometimes

1. To acquire qualified competent personnel

SYSTEMS TO ACHIVE THE OBJECTIVES

Henderson identified the following elements of wage and salary

1. The organizations ability to pay

Factors affecting wage rates

ADMINISTRATION OF WAGE AND SALARIES:

Wage and salary administration should be controlled by some proper agency.

1. Approval/Recommendation to management on job evaluation methods and

Basic Minimum Wage: It is the wage, which is to be fixed in accordance with

3. THE SURPLUS VALUE OF THEORY OF WAGES

According to the payment of wages act, 1936

Equal Remuneration Act1965

No employer shall make discrimination against women at the time of recruitment

The payment of Bonus Act :

DATA ANALYSIS &

Strongly Agree 30 30%