Wage and Slary

Polytechnic University of the Philippines
Santa Rosa Campus
City of Santa Rosa, Laguna
College of Business

WAGE AND SALARY

By
Anna Marichar A. Buena
BBA MM 2-1

Human Resource Management
MANA 2043
Professor Angelita Nocon
March 2013

TABLE OF CONTENTS Title Page........................................................................................................................................... 1 Table of Contents 2 Introduction 3 Discussion....................................................................................................................................... 4
Objectives of Wage and Salary Administration 4
Principle of Wage and Salary Administration 7
Definition and Concept 6
What is Compensation Package? 8 Factors Influencing Wage and Salary Administration 11
Elements of Salary and Wages 13
Theories of Wages and Salaries 14 Conclusion 16 Bibliography 19

INTRODUCTION:
As money is the prime need for human beings to meet their basic needs, everyone tries to earn as much money as possible.
The pay that an employee receives from his employer is the primary reason for his being on his job. He works to earn a living. His pays provide him a strong incentive to do his job well. The employee’s rate of pay often indicates his status in the organization. His wages determine not only his standard of living and the comforts that he and his family can have but also his standing in the community. It also determines what he can contribute to community development and social welfare. His pays determine his purchasing power. With higher wages he can acquire more goods and services of his family. High purchasing power for the workers stimulates the production of more goods and increases the need for more services. Hence higher pay may lead to greater production.
An employee’s pay must be commensurate with his efforts. It must be equitable in relation to what the other employees get for what they do ;