What is meant by salary?

What is meant by salary?

A salary is a form of payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour, or other unit is paid separately, rather than on a periodic basis. In accounting, salaries are recorded on payroll accounts.

What are the type of wages?

Types of Wages:

  • Piece Wages: Piece wages are the wages paid according to the work done by the worker.
  • Time Wages: If the labourer is paid for his services according to time, it is called as time wages.
  • Wages in Kind:
  • Contract Wages:

What are the principles of wages and salary administration?

Objectives and Principles of Wage and Salary Administration

  • Organisational Objectives: The compensation system should be duly aligned with the organisational need and should also be flexible enough to modification in response to change.
  • Individual Objectives:
  • Collective Objectives:
  • External Equity:
  • Internal Equity:
  • Individual Worth:

What are the rules for payment of wages?

(1) Every person employed upon or in: Any railway, factory or industrial or other establishments upon or in which the total number of employed persons is less than one thousand, must receive his wages before the expiry of the seventh day from the last day of the wage period for which the wages are payable.

What is difference between salary and wages?

Salary is the fixed amount of compensation which is paid for the performance of an employee. Wage is the variable amount of compensation which is paid on the basis of hours spent in finishing a certain amount of work. Whereas wages are paid on a daily basis for the number of hours spent.

How often are employees evaluated?

Employees are evaluated monthly. Employee evaluations are done at an official level twice a year. There is a 6 month review and an annual monetary review. Otherwise coaching sessions and accountability are encouraged routinely.

Why is making time for work important?

More hours in the day. Because ridding oneself of work is easier said than done. We instinctively cling to tasks that make us feel busy and thus important, while our bosses, constantly striving to do more with less, pile on as many responsibilities as we’re willing to accept.

How many times in a year should a company conduct an employee performance review?

It is typical for most companies to offer performance reviews every six months. Allowing six months between performance reviews seems to be the preferred amount of time for a number of reasons.

What are the elements of wages?

In many cases, total wages or earnings include different components, such as:

  • basic pay.
  • annual bonuses.
  • tips.
  • in-kind benefits.
  • productivity and performance pay.
  • allowances and premiums for non-standard work hours or dangerous work.

What are the goals of compensation administration?

A compensation package can include salary, bonuses, health-care plans, and a variety of other types of compensation. The goals of compensation are to attract people to work for your organization and to retain people who are already working in the organization.

What is the basic principle of compensation administration?

A general model of compensation administration encompasses the creation and management of a pay system based on four basic, interrelated policy decisions: internal consistency, external competitiveness, employee contributions, and administration of the compensation program.

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