ABSTRACT

The primary reason for people to work in an organization is to earn a livelihood for themselves and their families. Salary is the primary motivator of human beings in propelling them to work. This chapter discusses the function of salary administration. The specification of categories of employees, namely, employees on the regular rolls, temporary hires, consultants, trainees, and any other organizational specific employees that can be employed in the organization. Salary administration begins with fixing the salary of the employee at the time of recruitment. Paying the right salary after adding the eligible allowances and affecting the necessary deductions is one prime responsibility of employee relations and paying it on time is another responsibility as part of salary administration. The final aspect in salary administration is the administration of terminal benefits.