What is wage and salary administration? Wage salary administration is essentially the application of a systematic approach to the problem of ensuring that employees are paid in a logical, equitable and fair manner. Wage : Wage and salary are often discussed in loose sense, as they are used interchangeably. Salary : The term salary is defined as the remuneration paid to the clerical and managerial personnel employed on monthly or annual basis. This distinction between wage and salary does not seem to be valid in these days of human resources approach where all employees are treated as human resources and are viewed at par.
Hence, these two terms can be used interchangeably. Salary is also known as basic pay. Earnings : Earnings are the total amount of remuneration received by an employee during a given period.
These include salary pay , dearness allowance; house rent allowance, city compensatory allowance, other allowances, overtime payments etc. Nominal Wage : It is wage paid or received in monetary terms. It is also known as money wage. Real Wage : Real wage is the amount of wage arrived after discounting normal wage by living cost.
It represents the purchasing power of money wage. Take home salary: It is the amount of the salary left to the employee after making authorized deductions like contribution to the provident fund, life insurance premium, income tax and other changes. Statutory Minimum Wage: It is the amount of remuneration fixed according to the provisions of the Minimum Wages Act, It is the amount of remuneration fixed on the basis of norms accepted at the 15 th session of the Tanzanian Labour Conference held at Delhi at New Delhi in July, The Conference recommended that minimum wages should ensure the minimum human needs of industrial workers.
Evolution of PA employees share in total number of employees during the period The elaboration of the new remune- nIdentification of reserves to be used ration law must be preceded by a realistic to provide salary increases for employees; and transparent analysis of the public n The introduction of modern administration and local authorities structures management in the civil service, based on in the purpose to identify reserves of performance and quality services.
The evolution of salaries in the n There were significant differences in public administration salary policy during the two political cycles. The statistical date reported by the INS If in the first cycle the ratio between the salary of the PAD and other sectors remained allow us to analyze the trends over the time relatively constant, in the second cycle the and to make comparisons between wages in this sector of activity and the other branches growth in PAD salary was stimulated far more than in other sectors.
Moreover, the PA and other sectors for the period during the past four years differences have Table 2 increased in the favor of the PAD. Following the results in the Table 2 we make the following comments: Average salary and the rate between PA and the n The average salary in PA is higher other sectors than the average salary in the economy.
Table 3 Nominal The rate PA - Comparisons made with agriculture, Activity sector average other sectors salary lei industry, education and health emphasize the Public administration and higher values of the salary in administration. Health 1, 1. Hourly wage costs in the PA Bulletin nr. The evolution of the average salary in PA and other sectors during the period 3 raportul AP alte sectoare 2. The ratio of average hourly salaries in the PA and other sectors of the economy n Reforming the remuneration system consider and evolution of the average salary of the public administration should also in health and education.
For with almost 2. Wage increases Social assistance SAS the value was The gap has n For the second period the increase narrowed since Evolution of real wage prices of the Public Administration, Health and Social assistance in 4. Scenarios regarding Defining the new remuneration law n the evolution of the remuneration must start out with critical analysis of the system in the public administration reform of civil service that was undertaken during A special attention Rules and principles should be given to a critical analysis of some Developing a new remuneration law will important documents that have supported the have to consider several issues: conduct of civil service reform in the last period.
We regard in this respect: i The n Define a remuneration strategy and strategy for public administration reform. In this document n Linking the remuneration law in PA there have been explicitly specified the steps with a new remuneration system of all needed to implement a new philosophy of employees in the public sector. We propose The projected values are expressed in n in the following three scenarios.
We present prices. Scenarios hypotheses Monthly Statistical Bulletin no. Estimated variables. PA and other sectors. To develop this scenario we start from Variant 2 the following: n The number of employees in PA n The number of employees in the PAD remains unchanged in time horizon in September was equal to If this growth n The projected values are expressed in rate is maintained over the next four years, prices.
Estimated number of employees in PA thousands of persons Variant 3 Table 6 n The number of employees in the PA Year Estimated number of comes back to the number in following employees In those circumstances difficulty for the introduction of a new we obtain the values in the Table 7 for the remuneration law for civil servants; iv The average nominal salary costs and total salary administrative capacity of ANFP and INA costs in the PAD.
We considered an average would not allow the proper employment and exchange rate of 3. Relative growth To develop this scenario we start from is Under these conditions, we the current law does not favors the obtained values from the Table 8 for the competition and creates a series of gaps average nominal wage costs and total wage between different categories of employees; cost for PAD.
Considerations on the Remuneration System of the Public Administration — an Analysis on Electoral Cycles and Scenarios Development Results from the table 8 emphasize the n The number of employees in the PA following: i the average nominal salary will and defense in September was equal record an increase by Under these conditions costs incurred by the PAD will we foreseen a reduction in the number of thousand Euros.
The major risks of this situation are n Starting from the above assumptions, related mainly to the following: i creating the number of employees in this sector during a major pressure on the public budget the period will be according to because the amounts allocated to support the data presented in the Table 9.
Under this thousands of persons scenario, if the wage increase for the Table 9 employees in health and education are much Year Estimated number lower, it will be an increase in the disparities of employees Under these administration and reduced quality of circumstances we obtained the results in the services provided by it.
In this reduction Figure The evolution of average salary per will include outputs from the system through employee for in the three scenarios retirement and possible firing of the staff. Final comments and I II III Thousands Euro recomendations Taking into account the results of studies that were conducted by various institutions 0 of public administration, but also the approach taken in this study we formulate Figure The evolution of the total nominal in the following a series of final conclusions annual salary for the period in the and recommendations for defining a new three scenarios remuneration law for civil servants in the period immediately following.
The results obtained above allow us to 1. The macroeconomic approach to formulate the following preliminary reforming the remuneration system in PA. Make a macro-level analysis to the number of employees according to the estimate the salary costs of the civil servants assumptions in scenario 1. Comparing salaries of civil servants servants according with scenario 1 provides with those of other employees in various the highest salary in the year Critical analysis of the existing n Wage costs in the year are the administrative structures of central and local highest in scenario 1.
From this of employees. The analysis of the effectiveness of 3.
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