Module 7: Wage and Salary Administration

What is Wage?

• Payment to employers after completing a job.

• Payment for labor or services usually according to contract. An equivalent or are turn for something done, suffered or given.

• Payment, usually paid monthly and usually expressed as an annual amount, made by employers to employees in return for work done..

• Payment paid to employees after performing a very good job.

It deals with the payment of labor employed in competitive enterprises.

• Classical Wage Theory

• Wage Theories

• Salary Theory

• Payment Theory

What is Salary?

• Payment, usually paid monthly and usually expressed as an annual amount, made by employers to employees in return for work done.

  
  

• Payment paid to employees after performing a very good job.

• Payment for labor or services usually according to contract. An equivalent or areturn for something done, suffered or given.

• Payment to employers after completing a job.

This theory is based upon the fundamental concept that the labor is a commodity and we have to pay the price according to supply and demand, the lower is the price and when there's a greater demand the higher is the price. 

• Wage Theory

• Bargaining Theory

• Labor Theory of Value

• Classical Wage Theory

It is described as wage which permits the recipient worker to live a manner in keeping with his position in society. According to this theory, the workers’ cost of living should be considered first in the cost of production. 

• The Standard of Living Theory Wages

• Classical Wage Theory

• The Just Wage Theory

• Payment Theory

This theory holds the idea that the working capital of the nation provides a fund from which wages can be paid. The fund is to be divided by all the workers proportionately. When a certain group gets a greater share of the total fund, the rest in the group will have less to share. 

• The Fund Wage Theory

• The Wage and Fund Theory

• The Fund and Wage Theory

• The Wage Fund Theory

This theory tries to establish the relationship between wages and the level of economic activity. The more income the worker gets, the bigger the purchasing power of the workers; then this increases consumption of goods and services .

• The Purchasing Power Theory

• Labor Theory Value

• The Standard of Living Theory pf Wages

• Arbe pogi

It emphasizes that labor is the source of all product and that without this important component, there could be no goods for human consumption. Labor must get the greater share of the profit.

• The Just Wage Theory

• Labor Theory Value

• The Standard of Living Theory of Wages

• Classical Wage Theory

These are those workers who need an advanced degree to do their jobs.

• Professional

• Unskilled Labor

• Skilled Labor

• Labor Labor

Means that wages should be based on the cost of living. Any increase in economic growth would redound to increased wages. An increase in income would mean more consumption. More consumption increases the prices of goods and thus living wages also need to be increased proportionally.

• Labor Theory of Value

• Bargaining Theory

• The Standard of Living Theory of Wages

• The Marginal Productivity Theory