Administration of employee compensation is called wage and salary administration. Wage and salary administration is a collection of practices and procedures used for planning and distributing company-wide compensation programs for employees. Its aims to establish and maintain an equitable wage and salary structure and an equitable labor cost structure. Its plans must be in conformity with the social and economic objectives of the country like attainment of equality in income distribution and controlling inflation etc.
Followings are the current issues of wage and salary administration in Bangladesh:
- Status between wage earners and employee: There are differences in the status between employee and the wage earner in the society.
- Wage between women and men: In some cases, men and women of same task status get different payment.
- Employee sabotage trade union pressure: There is high pressure from the trade union in Bangladesh at wage determination.
- Global economy pressure: When determining the wage and salary the employer must consider the global economic factors.
- Political unrest: Political condition is almost a whole year in unrest condition.
Wage policy and the programme should be reviewed and revised periodically in conformity with changing needs. For revision of wages, a wage committee should always be preferred to the individual judgment, in order to prevent bias of a manager.