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Wage systems (Traditional (Rigidities/weakness (Disparity in basic wages…
Wage systems
Traditional
SENIORITY BASED wage increments & adjustments, LT scales & FIXED progression salary scales
Rigidities/weakness
Disparity in basic wages
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LONGER service = accumulate significant ↑, NOT linked to performance = disparity
New emp LOWER wage may perform better than LONGER service emp but get LOWER increment = unhappy & ↑ turnover
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1 way traffic for wage ↑
National wage council(NWC) make YEARLY recommendations to ↑ wage base on NATIONAL economy NOT based on industry/org performance = if make loss still need implement recommendation
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