What are Wages and Salaries?

Wages & Salaries :

          Wages and salaries and remuneration paid for the services of employees. Wages are paid by the employer for the services of a worker who is engaged by the hour, day, week or fortnight. Salary is paid to employees who are employed on monthly basis. Salary is also a payment for employee’s services but it is expressed as a weekly, monthly or annual payment.

Wage payment is important to workers as their life, standard of living and social status dependent on the amount of wage payment. Employees demand higher wages/salaries while employer prefers to pay lower wages / salaries as higher wages raise the production cost and reduce profit margin. Low wages are not necessarily economical. Employer should pay fair wages to his employees. This creates efficient, satisfied and co-operative labour force. In addition, industrial disputes, strikes, etc. are avoided / minimized.