A salary is a form of payment from employer to employee, which can be specified in the employment contract. This is in contrast to discounted wages, in which every job, hour or other unit is paid separately, and not on a regular basis. From the point of view of doing business, salary can also be seen as the cost of obtaining and maintaining human resources to run the operation, and then called the cost of personnel or salary costs. In accounting, salaries are recorded in the payroll account.
Salary is the amount of money or fixed compensation paid to an employee by the employer in return for the work performed. Salaries are usually paid in fixed intervals, for example, a monthly payment of one-twelve annual salary.
Salaries are usually determined by comparing the market wage rate for people doing similar work in similar industries in the same region. Salaries are also determined by leveling pay rates and salary ranges set by individual companies. Salaries are also influenced by the number of people available to perform certain jobs at the employer's location. Salary is a fixed cost in nature.
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History
First paid salary
Although there is no first pay cut for the first job-to-pay exchange, the first-paying job will require a fairly advanced society to have a barter system that allows the exchange of goods or services between merchants. More importantly, this presupposes the existence of organized entrepreneurs - presumably governmental or religious institutions - that will facilitate sufficiently regular job-to-hire exchanges to form paid employment. From this, most conclude that the first salary will be paid in the village or town during the Neolithic Revolution, sometimes between 10,000 BC and 6000 BC.
A clay tablet inscribed with cuneiform dated around 3100 BC provides a record of daily beer rations for workers in Mesopotamia. The beer is represented by an upright jar with a pointed base. The symbol for ration is the human head that eats from the bowl. The impression of round and semicircle represents measurement.
In the days of the Hebrew Book of Ezra (550 to 450 BC), the salt of a person is identical to drawing food, receiving pay, or being in the service of that person. At that time, salt production was tightly controlled by monarchs or ruling elites. Depending on the translation of Ezra 4:14, the servants of King Artaxerxes I of Persia explained their allegiance differently as "because we are salty with palace salt" or "because we have the care of the king" or "because we are responsible to the king".
Salarium
Latin word salarium originally is salt money (Lat The Roman and Medieval European and Pre-industrial Empires
Regardless of the proper connections, the salary paid to Roman soldiers has defined the work-to-hire form since in the Western world, and spawned expressions such as "being worthy of one's salt".
In the Roman Empire or (later) medieval and European pre-industrial and trade colonies, paid employment appears to be relatively sparse and largely confined to employees and a higher status role, especially in government services. Such roles are largely paid by the provision of lodging clothing, food, and livery (ie, "food, clothing, and shelter" in the modern idiom). Many servants, such as valet de chambre, at the end of medieval courts are paid in annual amounts, sometimes coupled with unexpected extra large payments. At the other end of the social scale, those in various forms of employment do not receive salary, as does slavery (though many slaves are paid a sum of money at least), slavery, and indentured slavery, or receive only a fraction of what is produced. , such as with revenue share. Other common alternative working models include self-employment or cooperation, such as with union masters, who often have paid assistants, or work and company ownership, as do the universities and medieval monasteries.
Commercial Revolution
In fact many of the works originally created by the Commercial Revolution in the years from 1520 to 1650 and later during Industrialization in the 18th and 19th centuries will not be paid, but, in so far as they are paid as employees, may be paid per hour or daily wages or paid per unit generated (also called cutting work).
In today's companies, like some East India Companies, many managers will be paid as shareholders. Such a remuneration scheme is still common today in accounting, investment, and partnerships of law firms where reputable professionals are equity partners, and technically do not receive salaries, but rather make periodic "withdrawals" of their share of annual income.
Second Industrial Revolution
From 1870 to 1930, the Second Industrial Revolution brought up modern business firms powered by rail, electric and telegraph lines and telephones. This era saw the emergence of many executive and salaried administrative classes serving the newly created large-scale companies.
The new managerial jobs lend themselves to paid work, in part because the efforts and outputs of "office work" are difficult to measure hourly or perverted, and partly because they do not always attract rewards from share ownership.
Because Japan was rapidly industrializing in the twentieth century, the notion of office work was new enough that a new Japanese word (salaryman) was created to describe the people who did it, as well as referring their remuneration.
20th century
In the twentieth century, the increase in the economy of services made salaried work more common in developed countries, where the relative share of industrial production jobs declined, and the share of executive, administrative, computer, marketing, and creative jobs - all-inclined salaries-increased.
Pay and other forms of payment today
Currently, the concept of salaries continues to grow as part of the total compensation system employers offer to employees. Salaries (also now known as fixed payments) will be seen as part of a "total reward" system that includes bonuses, incentive payments, commissions, benefits and additional income (or benefits), and other tools that help employers link rewards to performance measured employees.
Compensation has grown. Consider changes from the days before and before the industrial evolution, when work is held for life, with the fact that, from 1978 to 2008, individuals aged 18 to 44, holding an average of 11 jobs. Compensation has evolved gradually moving away from fixed short-term fixed compensation toward fixed-yield compensation based on fixed-rate results. Improvements in knowledge-based work have also led to partner pursuits (as opposed to employees) such as engagement.
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By country
Botswana
In Botswana, salaries are almost entirely paid each month with the date of payment falling on a different date in the second half of the month. Pay days usually range from the 15th of the month to the last day. The date of disbursement of salary is usually determined by the company and in some cases jointly with a recognized Trade Union.
The Botswana Employment Act Cap 47:01 Chapter VII regulates the aspect of wage protection in the employment contract. The minimum and maximum wage payment periods with the exception of ordinary employees shall not be less than a week or more per month, and where not expressly designated monthly is the period of default wages per section 75 of the Act to be paid before the third business day after the wage period. Wages are payable during office hours at work, or by other means, such as through bank accounts with employee consent. However, pay must be made in the form of a valid auction, the payment section in the form of non-prohibited as appropriate for personal use and the benefit of its employees and families, and the value attributable to such payments is fair and reasonable. Payments in the form of goods must not exceed forty percent of the total amount paid to employees.
The minimum wage is set, adjusted and even eliminated by the Minister on the advice of the Minimum Wage Advisory Council for a particular trade category. Designated categories include building, construction, hotel, catering, wholesale, guard, domestic service sector, agricultural sector, etc. The current minimum wage set for this sector is stipulated in the law of the Subsidiary in the Law.
Women on maternity leave are entitled to 25% of their salary as determined by the Employment Act but most companies pay about 50% for the period.
Denmark
By working for the Danish Government, it has been agreed under a political agreement, that salary depends on seniority, education, and a qualification allowance.
European Union
Under European law, the movement of capital, services, and resources (human beings) is not limited among member countries. Salary determinations, such as the minimum wage, remain the prerogative of each member state. Other social benefits, related to salaries are also determined at the level of member states.
India
In India, salaries are generally paid on the last business day of each month (Government, Public sector departments, Multi-national organizations as well as the majority of other private sector companies). Under the Payroll Law, if a company has less than 1,000 Employees, salaries are paid by the Company on the 7th of each month. If a company has more than 1,000 Employees, salary is paid on the 10th of every month.
The minimum wage in India is governed by the Minimum Wage Act, 1948. Employees in India are told about their upgraded wages through hard copy letters given to them.
Italy
In Italy, the Constitution guarantees the minimum wage, as stated in Article 36, Paragraph 1
- "Workers have the right to remuneration commensurate with the quantity and quality of their work and in any case such as to ensure they and their families have a free and dignified existence."
This constitutional guarantee is implemented not through special laws, but through collective bargaining that sets minimum wage standards in sectors by sector. Collective bargaining is protected by trade unions, which have constitutional rights such as legal personality. The Constitution also ensures equal payments to women, as stated in Article 37, Paragraph 1
- "Working women are entitled to equal rights and, for comparable work, equal pay with men."
Japanese
In Japan, the owner will notify employees of the pay increase through "jirei". This concept still exists and has been replaced by electronic form, or E-mail in large companies. The position and the world of "salarymen" is open only for one-third of Japanese. From school age, these young potentials are prepared and chosen to one day join the company as "salaryman". The selection process is very strict and after that the initiation process speaks of total dedication to the company.
South Africa
Minimum wages are widely used in developing countries to protect vulnerable workers, reduce wage inequalities, and raise poor people who work out of poverty. The political popularity of the minimum wage stems from the fact that the policy offers a means to redistribute income without necessarily increasing government spending or establishing a formal transfer mechanism. The challenge for policymakers is to find that a fair wage rate is provided by workers' needs and living costs, but does not jeopardize the work or global competitiveness of a country.
The median income of workers in South Africa is R2800 per month (USD 210.05) and average income is about R8500. These figures are found in SA statistics. Indeed, they reflect a large gap in South African society with the vast majority of the population below the poverty line having no equal employment opportunities.
The average monthly income of the white population (R9500) and India/Asia (R6000) is substantially higher than the average monthly income of counterparts (R2652) and African black (R2167). Black Africans get 22% of what white people get; 36.1% of what India/Asia earned; and 81.7% of what the colored population gets. Under 5%, black Africans earn R500 or less per month while the white population gets R2000 or less, while in the top 5% they earn R12 567 or more compared to the white population earning R34000 or more per month.
Netherlands
In the Netherlands, the salary is most often referred to as Jan Modaal. The term "modaal" is derived from the statistical term Mode. If government macroeconomic policies negatively affect "Modaal" income or payroll groups it is often customized to protect these income earning groups. The Dutch word "soldij" can be directly related to the word "soldaat" or army, which finds its origin in the word for the solidus gold coin, by which soldiers are paid during the Roman Empire.
The Netherlands is in the top 5 countries paying the highest salaries in the EU. The focus is on the level of salary and bonuses that accompany it while the secondary benefits, albeit present, have been underestimated but that change. The Netherlands claimed the 36th position when it came to secondary benefits when compared to other countries in Europe.
The minimum wage is determined through collective labor negotiations (CAOs). Minimum wage depends on age; the legal minimum wage for the age of 16 is lower than, for example, a 23-year-old (full minimum wage). Adjustments to minimum wages are made twice a year; on January 1 and July 1. The minimum wage for 21 years on January 1, 2013 is 1,065.30 Euro net per month and on July 1, 2013 this minimum wage is 1,071.40 net euros per month. For the 23-year-old on January 1, 2014 is 1485.60 Euro gross/month salary plus 8% holiday subsidy so 1604.45 Euro gross/month salary
United States
In the United States, the difference between periodic (usually unpaid) pay and hourly wages (meeting minimum wage tests and providing overtime) was first codified by the Fair Labor Standards Act of 1938. At that time, five categories are identified as "exceptions" of minimum wages and overtime protection, and therefore can be set. In 1991, some computer workers were added as the sixth category but effective August 23, 2004 category revised and reduced back to five (executive, administrative, professional, computer, and outside sales employees).
In June 2015, the Department of Labor proposed to raise a "salary threshold of $ 455 a week (equivalent to $ 23,660 a year) to about $ 970 a week ($ 50,440 a year) by 2016." On May 18, 2016 Final rules update overtime regulations were announced. Effective December 1, 2016 it says:
"The Last Rule sets the standard salary level at the 40th percentile of the weekly salaried full-time salaried employee income in the lowest-wage Census Area, currently in the South ($ 913 per week, equivalent to $ 47,476 per year for full-time workers)."
"The Final Rule sets the annual HCE compensation rate equal to the 90th percentile of the nationally paid full-time salaried worker ($ 134,004 per year).As excluded as HCE, employees must also receive at least a new standard salary amount of $ 913 per week on salary or cost and pass the minimum duty test. "
"Although FLSA ensures minimum wage protection and overtime pay for the majority of employees covered by the Act, some workers, including bona fide EAP employees, are exempted from such protection.Since 1940, Department regulations generally required each of the three tests to be fulfilled for the EAP FLSA exemption to apply:
- employees must be paid a fixed and fixed salary that is not subject to abatement due to variations in the quality or quantity of work performed ("base test salary");
- the amount of paid salary must meet the prescribed minimum amount ("salary level test"); and
- Employee job tasks should primarily involve executive, administrative, or professional tasks as defined by the rules ("task tests"). "
"The Last Rule includes a mechanism to automatically update the standard salary level requirements every three years to ensure that it remains a meaningful test to distinguish between overclocked white-collar workers and bona fide EAP workers who may not be eligible for overtime pay and to provide predictability and a more gradual salary change for employers.In particular, the standard salary level will be updated to maintain the same threshold as the 40th percentile of the weekly salaried full-time salaried employee in the lowest-wage Census Area. "
"For the first time, employers will be able to use non-free bonuses and incentive payments (including commissions) to satisfy up to 10 per cent of the standard salary levels." Such payments may include, for example, nondiscretionary incentive bonuses related to productivity and profitability. "
The general rule for comparing periodic pay with hourly wages is based on a standard 40 hours of work a week with 50 weeks per year (minus two weeks for holidays). (Example: $ 40,000/year periodic salary divided by 50 weeks equals $ 800/week Divide $ 800/week with 40 standard hours equals $ 20/hour).
Zimbabwe
Zimbabwe operates in a two-tier system of wages and salaries. Wages are managed by the National Employment Council (NEC). Each sector has its own NEC; namely agriculture, communications, mining, catering, educational institutions, etc. On the board are representatives of trade unions and employers. The public sector is under the Public Service Commission and wages and salaries are negotiated there.
Wages are negotiated annually or bi-annual for minimum wages, basic working conditions and remuneration. If there is a dead end it goes for arbitration with the Ministry of manpower. The decision will bind all companies in the industry. Industries often then use their associations to negotiate and broadcast their views. For example, the mining industry nominates an employee in the mine room to attend all meetings and subcommittees with industry players is a forum for discussion.
Salaries are negotiated by each employee. However, the NEC clearly affects relativity and almost acts as a barometer for paid staff. Salaries and wages in Zimbabwe are usually paid every month. Payment of most companies around the 20th allows for various payments and legal processing for the end of the month. Government employees are also reeling to facilitate cash flow even though teachers are paid around the middle of the 16th month. Agricultural workers are usually paid on the last day of every month because they are contract employees.
Zimbabwe is a very shackled society with the highest salaries. All government employees are paid through the bank. Since the "dollarisation" (the movement from the Zimbabwean dollar to the USD) Zimbabwe has moved towards a more informal sector and is paid in a 'brown envelope'.
PAYE (Pay As You Earn) is a significant tax contributor, which is 45%. Given the high unemployment rate, the tax is quite heavy. This of course catches those who pay and keep records correctly. The average salary might be $ 250. This is downward by a large number of government employees whose average salary is there. At the top of the salary is quite competitive and this is to be able to attract the right skills despite the high cost of living so as to balance this out. Zimbabwean high-income people spend more money on necessities than say the highest earner in South Africa. This is clearer when comparisons with the United States or Britain are done. The need to have generators, drill holes or buy water or take care of large families because there is no welfare given the government's financial position.
In the days of hyperinflation, salary is the cheapest factor of production because the payouts are very irregular, even though it reaches twice every month. Since workers can not withdraw their money, wages are often in the following form:
- The most popular fuel coupons and individuals are paid in liters of fuel
- Products sold by the company; such as pork/meat for slaughterhouses
- Foreign currency payments are illegal and a person must seek special dispensation or should indicate that their income/funds are received in a foreign currency such as an NGO or an exporter
- Shares for companies listed on the stock market (not in traditional option schemes but only getting shares)
Price controlled price. By rewarding the product, it basically allows employees to sell the sides for real value.
Zimbabwe has traditionally had a competitive advantage in the cost of its workforce. With "dollarisation" and higher living costs, this is slowly eroded. For example, an average farm worker might earn the equivalent of $ 20 but could buy a basket of stuff that is currently worth $ 500. Now, the average farmer gets $ 80 and the basket of goods, as mentioned, $ 500, a basket it is soap, food, school fees, protein foods, etc.
Payroll negotiation
Before accepting job offers, prospective employees usually have a chance to negotiate the terms of the offer. It mainly focuses on salary, but extends to benefits, work arrangements, and other facilities as well. Negotiating a salary can potentially lead a prospective employee to a higher salary. In fact, a 2009 employee study showed that those who negotiated a salary saw an average increase of $ 4.913 from their original salary offer. In addition, employers may feel more confident that they have hired an employee with strong interpersonal skills and the ability to handle conflict. Negotiating salaries will thus produce overall positive results for both sides of the negotiating table.
Perhaps the most important aspect of salary negotiation is the level of preparation made by the prospective employee. Background research on comparable salaries will help prospective employees understand the right range for that position. Assessing alternative offers that have been received by prospective employees can assist in the negotiation process. Research on the company itself will help identify where concessions can be made by companies and what are potentially considered off limits. These items, and more, can be arranged into negotiation planning documents that can be used in the evaluation of offers received from the employer.
Effects perspective
The same study in 2009 highlights the differences in personality and negotiation mindset that contribute to successful outcomes. Overall, risk-averse individuals (eg, worried about appearing unacceptable for a job offer) tend to avoid salary negotiations or use a very weak approach to the negotiation process. Conversely, those who are more tolerant of risk engage in more frequent negotiations and show better results. Individuals approaching negotiation as a distributive problem (ie seeing a higher salary as a victory for him and a loss to the employer) end up with an increased salary, but a lower level of satisfaction upon completion. Those who approach negotiations as integrative issues (ie see the negotiation process as an opportunity to expand the likelihood sphere and help both sides achieve a "win" result) are able to secure increased pay and the results are completely satisfied with.
Gender differences
The salary differences between men and women can be explained in part by differences in negotiation tactics used by men and women. Although men and women are equally likely to start in salary negotiations with employers, men will achieve higher yields than women about 2% of their starting salary. Studies show that men tend to use active negotiation tactics to ask for higher salaries directly, while women tend to use more indirect approaches by emphasizing self-promotion tactics (eg explaining the motivation to be a good employee). Other studies have shown that early childhood playing patterns can affect the way men and women negotiate. Men and women tend to look at salaries differently in terms of relative importance. The overall level of confidence in the negotiations can also be the determinant of why men tend to achieve higher yields in salary negotiations. Finally, awareness of this stereotype alone can directly lead women to achieve lower results as one study suggests. Regardless of the cause, the results result in disparities between men and women that contribute to the overall wage gap observed in many countries.
The Constitution of the Republic of South Africa 239 entitles the right to fair labor practices in article 23. Article 9 of the Constitution establishes provisions for equality in the Bill of Rights, whereby an employee may increase in terms of payment of an equivalent dispute. In the case of article 9 (1) "every person is equal before the law and entitled to equal protection and legal benefits" "Furthermore," the state may not unjustly discriminate directly or indirectly against anyone who is in one or more including race, sex, sex, pregnancy, marital status, ethnic or social origin, skin color, sexual orientation, age, disability, religion, conscience, beliefs, culture, language, and birth. "South African employees working in wages have an average monthly income of R2 800. Average monthly income for men (R3 033) is higher than for women (R2 340) - women in paid jobs earn 77.1 % of what men do.
Heavy role
Research conducted in 2011 shows that "double-weight standard" may be more complex than suggested by previous studies. This is not only relevant for women, but also for men. The smallest difference in income gap occurs in thin weights (where men are punished and women are rewarded) and vice versa occurs in heavier weights, where women are affected more negatively.
See also
- List of countries with monthly average wages
- List of countries in Europe based on average wages
- Executive compensation
- List of countries by average wage
- List of heads of state and government
- One-digit payroll list
- List of greatest sports contracts
- Salary (Japanese)
- Peak year earnings
References
Source of the article : Wikipedia
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