Product Code Database
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece , where each job, hour or other unit is paid separately, rather than on a periodic basis. Salary can also be considered as the cost of hiring and keeping human resources for corporate operations, and is hence referred to as personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.
A salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.
Salaries are typically determined by comparing market pay-rates for people performing similar work in similar industries in the same region. Salary is also determined by leveling the pay rates and salary ranges established by an individual employer. Salary is also affected by the number of people available to perform the specific job in the employer's employment locale (supply and demand).
The total remuneration for work includes employee benefits and Gross income. After payment of the remainder is net salary or disposable income.
A cuneiform inscribed clay tablet dated about 3100 BCE provides a record of the daily beer rations for workers in Mesopotamia. The beer is represented by an upright jar with a pointed base. The symbol for rations is a human head eating from a bowl. Round and semicircular impressions represent the measurements.
By the time of the Hebrew Book of Ezra (550 to 450 BCE), receiving salt from a person was synonymous with drawing sustenance, taking pay, or being in that person's service. At that time, salt production was strictly controlled by the or ruling elite. Depending on the translation of Ezra 4:14, the servants of King Artaxerxes I of Persian Empire explain their loyalty variously as "because we are salted with the salt of the palace" or "because we have maintenance from the king" or "because we are responsible to the king".
Within the Roman Empire or (later) medieval and pre-industrial Europe and its Mercantilism colonies, salaried employment appears to have been relatively rare and mostly limited to servants and higher status roles, especially in government service. Such roles were largely remunerated by the provision of lodging, food, and livery clothes (i.e., "food, clothing, and shelter" in modern idiom). Many courtiers, such as valets de chambre, in late medieval courts were paid annual amounts, sometimes supplemented by large if unpredictable extra payments. At the other end of the social scale, those in many forms of employment either received no pay, as with slavery (although many slaves were paid some money at least), serfdom, and indentured servitude, or received only a fraction of what was produced, as with sharecropping. Other common alternative models of work included self- or co-operative employment, as with masters in artisan , who often had salaried assistants, or corporate work and ownership, as with medieval universities and monastery.
New managerial jobs lent themselves to salaried employment, in part because the effort and output of "office work" were hard to measure hourly or piecewise, and in part because they did not necessarily draw remuneration from share ownership.
As Japan rapidly industrialized in the 20th century, the idea of office work was novel enough that a new Japanese word (salaryman) was coined to describe those who performed it, as well as referencing their remuneration.
Compensation has evolved considerably. Consider the change from the days of and before the industrial evolution, when a job was held for a lifetime, to the fact that, from 1978 to 2008, individuals who aged from 18 to 44, held an average number of 11 jobs. Compensation has evolved gradually moving away from fixed short-term immediate compensation towards fixed + variable outcomes-based compensation. An increase in knowledge-based work has also led to pursuit of partner (as opposed to employee) like engagement.
Salary surveys provide data on salaries for specific jobs throughout the market. Organizations may use salary survey data to develop and update their compensation packages. Individuals may use salary survey data in salary negotiations.
The Botswana Employment Act Cap 47:01 Chapter VII regulates the aspect of protection of wages in the contracts of employment. The minimum and maximum wage payment period with the exception of casual employees should not be less than one week or more than a month, and where not expressly stipulated a month is the default wage period per section 75 of the Act payable before the third working day after the wage period. The wages are to be paid during working hours at the place of employment, or in any other way, such as through a bank account with the consent of the employee. Salaries should be made in legal tender, however, part payment in kind is not prohibited provided it is appropriate for the personal use and benefit of employee and his family, and the value attributable to such payment in kind is fair and reasonable. The payment in kind should not exceed forty per cent of the total amount paid out to the employee.
The minimum wage is set, adjusted and can even be abolished by the Minister on the advice of the Minimum Wages Advisory Board for specified trade categories. The stipulated categories include building, construction, hotel, catering, wholesale, watchmen, the domestic service sector, the agricultural sector etc. The current minimum wages set for these sectors are set out in the Subsidiary legislation in the Act.
Women on maternity leave are entitled to 25% of their salaries as stipulated by the Employment Act but the majority of the companies pay out at about 50% for the period.
Political agreements made in 1997, known as "Ny Løn" (English: "new remuneration"), instigated a formal remuneration system that almost all employees in the Danish Government are employed under. An individual's remuneration consist of five components;
There is no minimum salary determined by law. A salary is often discussed or given as a gross monthly salary ("månedlig bruttoløn") which is pre-tax but including any pension benefits required by collective agreements ("overenskomst") to be deposited by the employer. This typically amounts to 8-12% of the monthly net salary ("månedlig nettoløn"), of which the employee is also obligated to deposit a part, typically another 4-6%.
Minimum wages in India are governed by the Minimum Wages Act, 1948.Details on the same can be seen at http://labourbureau.nic.in/wagetab.htm . Employees in India are notified of their salary being increased through a hard copy letter given to them.
This constitutional guarantee is implemented not through a specific legislation, but rather through collective bargaining which sets minimum wage standards in a sector by sector basis. Collective bargaining is protected by trade unions, which have constitutional rights such as legal personality. The Constitution also guarantees equal pay for women, as stated in Article 37, Paragraph 1
A salary is often discussed or given in terms of "Retribuzione Annuale Lorda" (RAL), similar to gross annual salary. Also a severance pay, "Trattamento di Fine Rapporto" (TFR), is required to be deposited by the employer to be paid to the employee on termination.
South African median employee earning is R2800 a month (USD ) and the average earning is around R8500. These figures are found in SA statistics. Indeed, they reflect the huge gap in the South African society with a large proportion of the population under poverty line that does not have the same opportunities for employment.
Median monthly earnings of white (R9500) and Indian/Asian (R6000) population were substantially higher than the median monthly earnings of their coloured (R2652) and black African (R2167) counterparts. Black Africans earned 22,% of what the white population earned; 36,1% of what Indians/Asians earned; and 81,7% of what the coloured population earned. In the bottom 5%, black Africans earned R500 or less per month while the white population earned R2 000 or less, while in the top 5% they earned R12 567 or more compared to the white population who earned R34000 or more per month.
Collective bargaining agreements (convenios colectivos) cover a large share of the workforce and strongly influence pay scales by sector and region. According to the Instituto Nacional de Estadística (INE), the average gross annual salary in 2022 was €25,353, with notable regional and sectoral differences.
The distinction between gross pay and net salary (sueldo neto) is significant, as taxes and social security contributions vary by income level and region. Spanish media often highlight this gap, with reports noting that employees frequently rely on a net salary calculator to estimate their actual take-home pay.
The Netherlands is in the top 5 of the highest salary-paying countries in the EU. The focus has been on the salary levels and accompanying bonuses whereas secondary benefits, though present, has been downplayed yet that is changing. The Netherlands claims a 36th position when it comes to secondary benefits when compared to other countries in Europe.
The minimum wage is determined through collective labor negotiations (CAOs). The minimum wage is age dependent; the legal minimum wage for a 16-year-old is lower than, for instance, a 23-year-old (full minimum wage). Adjustments to the minimum wage are made twice a year; on January 1 and on July 1. The minimum wage for a 21-year-old on January 1, 2013, is 1,065.30 Euro netto per month and on July 1, 2013, this minimum wage is 1,071.40 Euro netto per month. For a 23 year old on 1 January 2014 is 1485,60 Euro gross salary / month plus 8% holiday subsidy so 1604,45 Euro gross salary / month
In June 2015 the Department of Labor proposed raising "the salary threshold from $455 a week (the equivalent of $23,660 a year) to about $970 a week ($50,440 a year) in 2016" On May 18, 2016, the Final rule updating the overtime regulations was announced. Effective December 1, 2016 it says:
A general rule for comparing periodic salaries to hourly wages is based on a standard 40-hour work week with 50 weeks per year (minus two weeks for vacation). (Example: $40,000/year periodic salary divided by 50 weeks equals $800/week. Divide $800/week by 40 standard hours equals $20/hour).
Wages are negotiated annually or biennially for minimum wages, basic working conditions and remunerations. If there is a stalemate it goes for arbitration with the Ministry of labour. The ruling will become binding on all companies in that industry. Industries often then use their associations to negotiate and air their views. For example, the mining industry nominates an employee within the chamber of mines to attend all meetings and subcommittee with industry players is a forum for discussions.
Salaries are negotiated by the respective employees. However, NEC obviously affects the relativity and almost acts as a barometer for salaried staff. Salaries and wages in Zimbabwe are normally paid monthly. Most companies' pay around the 20th does allow various statutory payments and processing for the month end. Government employees are also staggered to ease the cash flow though teachers are paid around mid-month being 16th. Agricultural workers are normally paid on the very last day of the month as they are contract employees.
Zimbabwe is a highly banked society with most salaries being banked. All government employees are paid through the bank. Since "dollarisation" (movement from the Zimbabwean dollar to USD) Zimbabwe has been moving toward a more informal sector and these are paid in 'brown envelopes'.
PAYE (Pay As You Earn) is a significant contributor to tax being 45%. Given the high unemployment rate the tax is quite heavy. This of course captures those that pay and keep records properly. The average salary is probably $250. This is skewed downwards by the large number of government employees whose average salary is around there. At the top end salaries are quite competitive and this is to be able to attract the right skills though the cost of living is high so it balances this out. A top-earning Zimbabwean spends a lot more money on necessities than say a South African top earner. This is more evident when a comparison with USA or England is done. The need to have a generator, borehole or buy water or take care of the extended family since there is no welfare given the government's financial position.
In the hyperinflation days salaries was the cheapest factor of production given that it was paid so irregularly though it went to twice monthly. As workers could not withdraw their money, remuneration was often in the following forms:
Prices were price controlled. By remunerating in the product it basically allowed the employees to side sell for real value.
Zimbabwe traditionally had a competitive advantage in its cost of labor. With "dollarisation" and higher cost of living this is slowly being eroded. For example, an average farm employee probably earned the equivalent of $20 but could buy a basket of goods currently worth $500. Now, the average farm worker earns $80 and that basket of goods is, as mentioned, $500, the basket being soap, meal, school fees, protein foods, etc.
Perhaps the most important aspect of salary negotiation is the level of preparation put in by the prospective employee. Background research on comparable salaries will help the prospective employee understand the appropriate range for that position. Assessment of alternative offers that the prospective employee has already received can help in the negotiation process. Research on the actual company itself will help identify where concessions can be made by the company and what may potentially be considered off-limits. These items, and more, can be organized into a negotiations planning document that can be used in the evaluation of the offers received from the employer.
The same 2009 study highlighted the personality differences and negotiation mind-sets that contributed to successful outcomes. Overall, individuals who are risk-averse (e.g., worried about appearing ungrateful for the job offer) tended to avoid salary negotiations or use very weak approaches to the negotiation process. On the contrary, those who were more risk-tolerant engaged in negotiations more frequently and demonstrated superior outcomes. Individuals who approached the negotiation as a distributive problem (i.e. viewing the a higher salary as a win for him/her and a loss to the employer) ended up with an increased salary, but lower rate of satisfaction upon completion. Those who approached the negotiation as an integrative problem (i.e. viewing the negotiation process an opportunity to expand the realm of possibilities and help both parties achieve a “win” outcome) were able to both secure an increased salary and an outcome they were truly satisfied with.
The Constitution of the Republic of South Africa 239 provides for the right to fair labour practices in terms of article 23. article 9 of the Constitution makes provision for equality in the Bill of Rights, which an employee may raise in the event of an equal pay dispute. In terms of article 9(1) “everyone is equal before the law and has the right to equal protection and benefit of the law'” Furthermore, “the state may not unfairly discriminate directly or indirectly against anyone on one or more grounds, including race, gender, sex, pregnancy, marital status, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, belief, culture, language, and birth.” South African employees who were in paid employment had median monthly earnings of R2 800. The median monthly earnings for men (R3 033) were higher than that for women (R2 340) - women in paid employment earned 77,1% of what men did.
The smallest income gap differences occur at thin weights (where men are penalized and women are rewarded) and the opposite happens at heavier weights, where the women are affected more negatively.Judge, Timothy A., Department of Management, Warrington College of Business, University of Florida, FL, US. Cable, Daniel M., Department of Organisational Behaviour, London Business School, London, England
|
|
