The essence of wages

According to statistics, 95% of Russians consider it their main source of income wages.Behind her are such ways to profit as securities, deposits and so on.Therefore, the essence of wages can be understood as remuneration and motivation for further career development.This is one of the most efficient incentives for increasing and improving productivity.

Wages can be represented as a refund spent on career employee time and effort.How is the size of the compensation?The answer to this question can not be unique.It is considered that the employer must pay the employee a sum of money, which will suffice to meet the necessities of life.It is worth remembering that a core set of consumer goods and services varies depending on the country and the particular stage of historical development of society.So, the essence of wages - is creation of favorable conditions for the life of all citizens.

How distributed cash rewards?Typically, the level of income depends on the quality and quantity of human labor, as

well as the final results of the company.In order to comprehend the essence of wages, need to know some of the definitions.The cost of labor - a labor force that is formed on the basis of the ratio of supply and demand.Wages - a category of performance.Formed it is not only in accordance with the market value of labor, but also taking into account factors such as the complexity of the conditions and the social significance of the work.

Considering the nature of wages, is to clarify that the process of work has no value.Cash compensation comes at the expense of performance.There is a so-called nominal wages.Under this concept implies the amount of money received in a particular time period (hour, day, month).Real wages - is the amount of different benefits that can be purchased for a nominal cash consideration.That is, the purchasing power of cash.

So we looked at such things as the nature and function of wages.Now let's try to understand how the form of monetary compensation for employment.The wage level is directly proportional to the ratio of supply and demand.The employer must provide the expert a sum of money that he rejected all other employment options.However, if demand exceeds supply a particular industry, a person has no choice but to agree to any proposed salary.

There are two main forms of cash compensation for work.Time-based salary - this is an option, in which the employer pays for the time spent officer.A more modern form - a piece-cash compensation for work.That is the salary paid based on performance.The second form is gaining in popularity, as compared to the first, it has many advantages.In particular, it is a powerful motivating employees to improve their work and increased productivity, which positively affects the well-being of the whole enterprise.

summarize.The economic essence of wages is to provide citizens with necessary goods of life, which are formed on the basis of specific conditions, and are distributed according to the results of work, and many other parameters, for example, the ratio of supply and demand for labor.