# CONCEPT OF WAGES: 1) MINIMUM WAGE: Is the one which provides not merely for bare sustenance of life but

also for the preservation of the efficiency of the worker. For the purpose the minimum waghe must also provide for some measure of educational, medical requirement. 2) FAIR WAGE: is understood in two ways. In a narrow sense wage is fair if it is equal to the rate prevailing in the same trade and in the neighborhood for similar work. In a wider sense it will be fair if it is equal to the predominant rate for similar work. 3) LIVING WAGE: is a step higher than fair wage. Living wage may be described as one which should enable the wage earner to provide for himself and his family not only the bare essentials of life like food, clothing and shelter but a measure of frugal comfort include education for children, protection against ill health etc.

# FACTORS INFLUENCING EMPLOYEE REMUNERATION : A) EXTERNAL FACTOR: 1) Labor market: demand and supply of labor influence wage and salary fixation. A low wage may be fixed when the supply of labor exceeds the demand for it. 2) Cost of living: next importance to labor market is the cost of living. The criterion matters during periods of rising prices and is forgotten when prices are stable or folding. The justification for cost of living as a criterion for wage fixation is that the real wage of workers should not be allowed to be whittled down by price increases. 3) Labor Union: the presence of absence of labor org after determines the quantum of wage aid to employees. Employers in non unionized factories enjoy the freedom to fid wages and salaries as they please 4) labor laws: the payment of wages act was passed to regulate payment of wages to certain group of persons employed in the industry & also seeks to protect works against irregularities an payment wages and unauthorized deduction. 5) Society: Remuneration paid to employees is reflected in the prices fixed by an organization foe its goods and services. 6) Economy: The last external factor that has its impact on wage and salary fixation is the state of economy of a country. While it is possible for some org. to strive in a recession, there is no question that the economy affects remuneration decision. #INTERNAL FACTORS: Among the internal factors which have an impact on pay structure are the company strategy to evaluation, performance appraisal; and the worker himself or herself. 1)business strategy: the overall strategy which a company uses should determine the remuneration to the employees. Where the strategy of the enterprise is to achieve rapid growth, remuneration should be higher than what competitors fix.

# CHALLENGES OF REMUNERATION : 1) SKILLS BASED PAY: is the traditional job based pay, employees are paid on the bases of job they do, in the skill based system, workers are paid on the basis of number of jobs they are capable of doing. 2) Pay review: Pay once determined should not remain constant. It must be reviews and changed often but how often becomes a relevant question,. On pay requires may be made on predetermined dates, anniversary fates or there could be flexible review. 3) PAY SECRECY: The process by which a remuneration plan is designed and administered is critical for any organization. One challenge factor HRM concerns the availability if information about remuneration to employees. 4) COMPARABLE WORTH: One of the popular principles in employee remuneration is equal pay for equal

work. The principle has been the inspiration behind the enactment of the equal remuneration act. Under the act, male and female nurses are to be paid the same if their merit and seniority match. 5) EMPLOYEE PARTICIPATION: When employees are involved in designing a remuneration plan, they exhibit little resistance in accepting it. Such a plan is much more likely to be a successful motivator than the one imposed by the management.