Social Cost Audit
Bangalore university
Semester III
HR specialization
Module 2 Wage & Salary Administration
Nature and scope, compensation, wage determination process, factors influencing
Wage and salary administration. Wage – theories of wages, types of wages – time
Rate, piece rate, debt method, wage differentials.
Q. What is the meaning of Wage? (2 marks)
Indian Labour Organization has 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. Wages means the amount paid to the labor for his services to the employer.
Q. Explain the nature of wages? (2 marks)
It is remuneration
Basis (time, task, piece, commission)
Payable by the employer
Important component of labor cost
Important variable
Fair and reasonable value
Q. Explain the significance of wages (2 marks)
Acts as motivator
Helps in employee retention
Provides satisfaction
Used to attract labor
Helps in collecting information
Q. Bring out the difference between salary and wage. (2 marks)
Wages is compensation to the employees for services rendered to the organization. In case of quantum of services rendered is difficult to measure, payment is called salary.
Normally the wages period is shorter than salary period.
Q. What is the meaning of Salary?(2 marks)
The term salary is defined as the remuneration paid to the clerical and managerial personnel employed on monthly or annual basis.
Salary is defined as a fixed compensation periodically paid to a person for regular work or services, especially work other than that of manual, mechanical or menial kind.
Q. What is the meaning of Earning? (2 marks)
Earnings are the total amount of remuneration received by an employee during a given period. These include salary (pay), dearness allowance; house rent allowance, city compensatory allowance,
Semester III
HR specialization
Module 2 Wage & Salary Administration
Nature and scope, compensation, wage determination process, factors influencing
Wage and salary administration. Wage – theories of wages, types of wages – time
Rate, piece rate, debt method, wage differentials.
Q. What is the meaning of Wage? (2 marks)
Indian Labour Organization has 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. Wages means the amount paid to the labor for his services to the employer.
Q. Explain the nature of wages? (2 marks)
It is remuneration
Basis (time, task, piece, commission)
Payable by the employer
Important component of labor cost
Important variable
Fair and reasonable value
Q. Explain the significance of wages (2 marks)
Acts as motivator
Helps in employee retention
Provides satisfaction
Used to attract labor
Helps in collecting information
Q. Bring out the difference between salary and wage. (2 marks)
Wages is compensation to the employees for services rendered to the organization. In case of quantum of services rendered is difficult to measure, payment is called salary.
Normally the wages period is shorter than salary period.
Q. What is the meaning of Salary?(2 marks)
The term salary is defined as the remuneration paid to the clerical and managerial personnel employed on monthly or annual basis.
Salary is defined as a fixed compensation periodically paid to a person for regular work or services, especially work other than that of manual, mechanical or menial kind.
Q. What is the meaning of Earning? (2 marks)
Earnings are the total amount of remuneration received by an employee during a given period. These include salary (pay), dearness allowance; house rent allowance, city compensatory allowance,