Chapter I
INTRODUCTION
1. MEANING OF WAGE/ COMPENSATION PAYMENT: Wage is a monetary payment made by the employer to his employee for the work done or services rendered. It is a monetary compensation for the services rendered [1]. A worker may be paid Rs. 100 per day or Rs. 4500 per month. This is wage payment. The worker gives his services and takes payment called wage payment. Industrial workers are paid remuneration for their services in terms of money called wage payment. Wages are usually paid in cash at the end of one day, one month or one week. Money wage is the monetary compensation or price paid by the employer to his employee for the services rendered. Such compensation is also called wage or salary or reward
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This is due to poverty, rising prices, mass unemployment and rising population. Wage payment indeed a vexatious problem and needs to be tackled from economic, social and humanistic angles.
1.2 CONCEPT OF FAIR WAGES:
Fair wages is the wage which is above the minimum wage but below the living wage. Obviously the lower limit of the fair wage is the minimum wage and the upper limit is set by the ability of the industry to pay. Between these two limits, fair wages should depend on the factors like – 1. Prevailing rates of wages in the same occupation 2. Prevailing rates of wages in the same region or neighbouring areas 3. Employers ability to pay 4. Level of national income and its distribution 5. Productivity of labour 6. Status enjoyed by the industry in the economy
Hence it can be said that fair wages are determined on industry cum region basis. When fair wages are paid employees enjoy higher standard of living. It is accepted fact that wages must be fair and reasonable. Wages is fair when the employee is able to meet its essential needs and enjoy reasonable standard of living. ”Equal pay for equal work” serves as base of fair wage [4].
1.3 FACTORS INFLUENCING WAGE AND SALARY STRUCTURE [5] • The organization’s ability to pay:
Wage increases should be given by those organizations which can afford them. Companies that have good sales and therefore high profits tend to pay higher wages than those which are
The first lesson we learnt was the importance of treating employees fairly, especially in terms of wages. Employees who are content and treated fairly are productive and will evidently drive the bottom line of the company. Their productivity will be high, knowing their wage is reflective of their work and they feel valued in the company. Not only did employees experience pay dissatisfaction if they perceived their pay as unfair, they were also less motivated to achieve the organization’s goals. (HRM 212) In Quarter 6, we increased the wages for Level 3,4, and 5 workers. However, we received feedback that notified us that our Level 1 workers
The issue of gender inequality in the workplace affects many. The issue of discrimination in wages has been an issue since women were allowed to hold a job and has continued, and possibly progressively gotten better, but it has also gotten progressively worse as it is easier to hide this
What is wage discrimination? Wage discrimination (also known as compensation or Pay discrimination) is “when employees performing otherwise substantially equal work do not receive the same pay, or remuneration, for their effort” ("Compensation Discrimination"). This type of discrimination can happen at the same time as other types of discrimination, but the most common kinds are gender and racial. Racial wage discrimination has mainly been eradicated due to how many civil rights laws have been passed. Gender wage discrimination, however, is still quite prevalent in today’s culture.
Income and wage inequality is a form of discrimination. This form of discrimination is between employer and employee or worker. As with any form of discrimination it is illegal and morally wrong. What steps can governments and industries take to ensure there is no wage inequality occurring?
Is America the best country in the world like it claims to be? Numerous controversial issues can keep Americans debating all day long. Bias is one of the main causes of these disputable topics. Discrimination against certain groups of people still exist today in America. Issues regarding gender can lead to big disputes because everybody has a different opinion. Some people believe men are the superior gender, while other people believe the opposite. The controversial issue of wage inequality deserves to be addressed because women are just as equal to men. A step further into equalizing genders would be wage equality. There are economical, social and political reasons why the United States should equalize pay.
In many studies recorded by Raise the Wage, it states that, when the San Francisco Airport had a raise in pay, employee turnover drastically dropped from 95% to 19%. As well as 35% increase in working performance, employee morale improved 47%, 44% drop in for disciplinary issues, and customer service improved 45%. However this is not only the San Francisco Airport is not the only place where improvements were found in employees, by raising their pay; home care workers located in Bay Area also had turnover drop by 57%, and in Los Angeles there was an average 17% lower rates of turnover in firms where pays were higher. Fast-food employees were also employed longer and were commonly found to have full-time jobs when minimum wage was raised. Many companies including Costco, have taken notice of the improvements in workers when payed higher, a Business for a Fair Minimum Wage stated, “[h]igher wages benefit business by increasing consumer purchasing power, reducing costly employee turnover, raising productivity, and improving product quality, customer satisfaction and company
1. Each Member State shall ensure that the principle of equal pay for male and female workers for equal work or work of equal value is applied.
As of 2009, the federal minimum wage established by U.S. Labor Law is of $7.25 per hour- income that is not enough to cover the expenses of an individual or family and therefore creates numerous economic and politic controversies. The inability to keep up with paying the bills and housing, spending money on healthcare and childcare- created a society of marginalized groups of people who face troubling barriers to opportunity and development. Consequently, a satisfactory standard of living can be achieved by implementing a living wage, which theoretically allows the employees to afford decent shelter, food, and other everyday essentials.
In this globalization era, as various countries see growth in their economy, there has also been significant differences in the wages set to employees in different countries. The lowest wages set by the law that are fixed to a particular amount which is also defined to be the price floor below which workers shall not sell their labor, has its own effects. The minimum wage law came into force as a matter of social justice amongst the low-wage workers, also to reduce exploitation and see that workers can afford the standard basic living expenses and necessities, not to increase the unemployment rate, indeed to increase the employment rate.
Several factors should be considered when determining a fair and equal wage across the labor force. Preservation of the existing labor force, while minimizing the impacts on a business being able to maintain their competiveness is a critical
Minimum wage is defined as the lowest wage payable to an employee in general or to designated employees as fixed by law or by inion agreement. This wage is compensation created as a reward that is reasonable to the employer and the employee alike. Patton suggests that in compensation policy there should be seven criteria for effectiveness. Compensation should be adequate, equitable, balanced, cost-effective, secure, incentive-providing, and acceptable to the employee (Konopaske, 2013), although the government directly affects minimum wage compensation through wage controls and guidelines. Government laws are established to prevent discrimination.
Majority of the people believe that workers should be paid the amount that they are worthy of getting paid. In a free-market economy, the salaries of different persons should be different. For example, the salary of a 16 year old boy should not be similar to a 30 year old lady or single mother. There should be some
where comparable to men’s work must receive equal pay; Equal pay for work of equal value is
Equal Pay is a topic that has been highly talked about for decades in the professional world. Whether it’s between men and women having “same pay” or whether its race, this topic will always have a significant place in the work world. What exactly is “equal pay?” Equal pay entails that an employer must pay a male or female employee equally for the work
The organization for which I am designing the compensation package is a company that offers internet solution to customers in the domestic US market and the global market. The position that I am hiring is that of a company secretary. The secretary will be required to work in the office of the human resource manager and will handle all the papered and paperless documentation. The position comes with numerous benefits and packages as outlined herein.