Wages And Salary
Wages represent hourly rates of pay, and salary refers to the monthly rate of pay, irrespective of the number of hours put in by the employee. Wages and salaries are subject to the annual increments. They differ from employee to employee, and depend upon the nature of job, seniority, and merit.
Incentives:
Incentives are paid in addition to wages and salaries and are also called ‗payments by results‘. Incentives depend upon productivity, sales, profit, or cost reduction efforts. There are: (a) Individual incentive schemes, and (b) Group incentive programmers. Individual incentives are applicable to specific employee performance. Where a given task demands group efforts for completion, incentives are paid to the group as a whole. The amount is later divided among group members on an equitable basis.
Fringe benefits:
These are monetary benefits provided to employees. They include the benefit of: (a) Provident fund, (b) Gratuity, (c) Medical care, (d) Hospitalization payment, (e) Accident relief, (f) Health and Group insurance, (g) Subsidized canteen facilities, (h) Recreational facilities, and (i) Provision of uniforms to employees.
Perquisites:
There are special benefits offered to managers/executives. The purpose is to retain competent executives. Perquisites include the following: (a) Company car for traveling, (b) Club membership, (c) Paid holidays, (d) Furnished house or accommodation, (e) Stock option schemes, etc.
Non-monetary benefits:
These benefits give psychological satisfaction to employees even when financial benefit is not available. Such benefits are: (a) Recognition of merit through certificate, etc. (b) Offering challenging job responsibilities, (c) Promoting growth prospects, (d) Comfortable working conditions, (e) Competent supervision, and (f) Job sharing and flexi-time.
