Benefits of Labour costs
Labour costs represent the various items of expenditure Such as:
Monetary Benefits:
i) Basic Wages;
ii) Dearness Allowance;
iii) Employer’s Contribution to Provident Fund;
iv) Employer’s Contribution to Employee’s State Insurance (ESI) Scheme;
v) Production Bonus;
vi) Profit Bonus;
vii) Old age Pension;
viii) Retirement Gratuity;
Fringe Benefits:
i) Subsidised Food;
ii) Subsidised Housing;
iii) Subsidised Education to the children of the workers;
iv) Medical facilities;
v) Holidays pay;
vi) Recreational facilities.
Economic utilization of labour is a need of the present day industry to reduce the cost of production of the products manufactured or service rendered.
Control of labour costs is an important objective of management and the realization of this objectives depends upon the cooperation of every member of the supervisory force from the top executive to foreman. From functional point of view, control of labour cost is effected in large industrial concern by the coordinated efforts of the following six departments-
1) Personnel Department,
2) Engineering Department,
3) Rate or time and Motion Study department
4) Time-Keeper Department
5) Cost Accounting Department
6) Pay-roll Department
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