COMPONENTS OF WAGE SYSTEM

COMPONENTS OF WAGE SYSTEM

1. BASIC WAGES
   1. minimum wages
   2. fair wages
   3. living wages
2. DEARNESS ALLOWANCES
   1. indexed bases DA
   2. DA linked to pay slabs and to customer index price
   3. flate rate DA
   4. graduated level DA
3. ANNUAL STATUTORY BONUS
4. INCENTIVE BONUS
5. FRINGE BENEFITS 

NEED FOR SOUND WAGE POLICY

1. it should be related with productivity
2. it should be related with job requirements
3. lower cost of production
4. incentive system
5. minimum wages
6. efficiency
7. difference in wages
8. flexibility
9. good relation with trade union

PREREQUISITES FOR SOUND INCENTIVE PLAN

1. proper climate
2. co-operative workers
3. workers participation
4. scientific standards
5. simplicity
6. equitable
7. flexible
8. less costly
9. wide coverage
10. careful planning
11. guarantee minimum wages
12. sufficient incentives
13. ceiling on earnings
14. grievance settlement
15. timely payment
16. review rates
17. follow up