Wages differ among nations, regions, occupations, and individuals. Generally, wages will be higher where the demand for labor exceeds the supply. The main factor that determines the upper limits of wages is the productivity of the business in combining inputs to produce socially desirable outputs.
What are the factors affecting wages and different methods of wage payment?
Factors affecting wages & Salary, Systems of payments
- Ability to Pay:
- Demand and Supply:
- Prevailing Market Rates:
- Cost of Living:
- Bargaining of Trade Unions:
- Productivity:
- Government Regulations:
- Cost of Training:
What are the factors that influence wage rates?
1. Demand and Supply of Labor. 2. Legal Provisions. 3. Ability to Pay. 4. Nature of Job. 5. Working Hours. 6. Comparative Wage Levels. 7. Cost of Living. 8. Type of Employment. 1. Demand and Supply of Labor: Demand and supply is one of the important factors which influence the wage rates.
How does productivity affect wage and salary structure?
Productivity differs from organistation to organisation, industry to industry, region to region etc. However, productivity is considered as one of the important factors which affects the wage and salary structure.
How does cost of living affect your salary?
The cost of living is another important factor that influences the quantum of salary. The employees expect that their purchasing power be maintained at least at the same level, if not increased by adjusting wages to changes in cost of living. An interesting development in wage determination has been productivity standard.
How does supply and demand affect wage structure?
Supply and Demand of Labor The labor market conditions or supply and demand forces operate at the national, regional and local levels, and determine organizational wage structure and level. If the demand for certain skills is high and the supply is low, the result is a rise in the price to be paid for these skills.
