Salary - this is the part of the money that goes to consumption.This share of net income depends on the results of teamwork.Between employees wages are determined in accordance with the quality and quantity of labor which has been expended, and also depends on the size of the capital invested initially.Based on the definition of the term in the Labour Code, it is possible to identify the main components thereof.Thus, the salary structure consists of:
- constant part;
- compensatory payments;
- incentive payments.
It is of two types: real and nominal.The latter represents the total amount of the money that the employee receives for work, which invests.A real wage - is the amount of goods and services that can be purchased, with a nominal salary.
Without it, there can be no question of increasing the well-being of every person, and the state as a whole.Without material incentives can not be development and improvement of production.There are the following main functions of wages:
1. Stimulating.The implementation of this function of wages is necessary, first of all, to the company's management.It is interested to encourage subordinates to the active and effective work, to surrender to the maximum.For this purpose, set the size of the salary depending on the results of each individual.The greater the gap between the personal contribution of the employee and payment of his work, the faster it goes the initiative and effort.
2. Reproduction.The importance of this function of wages is to support and even improve the living conditions of employees.It is due to the fact that everyone should have the opportunity to buy the most necessary things, raise their children, to give them an education, that is to prepare human resources for the future.He has to rest from time to time to maintain the long-term performance.Also, the subordinate should be able to raise the level of their culture.
3. Status.The implementation of this function of wages is to raise the status of the person in accordance with the increase in assessment of his work in monetary terms.The main indicator of the status - the amount of remuneration.On the validity of the payment a person can be judged by comparing it with the number of its forces embedded.
4. Control.This function affects the relationship between supply and demand in the labor market.It helps to establish a balance between individuals, striving for a very large payment, and employers who still can not pay much, because their company would be completely unprofitable.To this end, and a differentiation of wages by groups of employees.
5. Social.This feature usually continues and complements the reproductive.This means that wages should not only help replenish the workforce, but also allow employees to use the basic social benefits: education of children, education, recreation, treatment, cash collateral after retirement.
6. Production and lobar.This function affects the extent to which human labor is involved in the formation of prices for goods and services, and what is its share of the costs and production and labor.It is important.From it depends on cheap labor or a high cost of the labor market, its ability to compete.This strictly observed lower and higher limits of installed cost.In the production-share functions through a system of salaries, bonuses, allowances, by order of their accrual implemented all the previous functions of wages.
