Characteristics of Good Wage System
1. Fair to both the Parties:
The system should be such as may be acceptable gladly to the employer and the employees. for this purpose, the employer should decide the system in consultation with the workers.
2. Easy to Calculate
The workers should be in a position to calculate their wages correctly and feel sure that they have been correctly paid. Easy calculation will help the employer also in maintaining simple records.
3. Related to Efficiency
‘Fair remunerations for fair output’, should be the idea and remuneration should be related to the individual efficiency of the workers.
4. Minimum wage guaranteed
There should be a guarantee of minimum wages to the workers to enable them to maintain their basic standards of life, and to do away with uncertainty-concept.
5. Incentive-oriented
The wage system should be such that the workers may feel encouraged to product more and earn more wages.
6. Quality Improvement-oriented
In the race to earn more wages with an increase in production, the chances are that the quality of the output may deteriorate. The system should, therefore, ensure ‘better wages for better quality’.
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