One year after the outbreak of the yellow vest crisis, the issues of fair remuneration and purchasing power are still relevant. Many French people find it hard to see the first results of the measures taken by the government in response to last year`s large protest movement. It is still difficult to find a balanced and fair salary. What is a good salary? How do you correctly define a salary? How to achieve the right balance between fixed and performance-based compensation? As salary becomes increasingly important in the relationship between each employee and their company, finding a balanced salary that matches the employee`s value proposition is just as important. Subscribe to America`s largest dictionary and get thousands of other definitions and an advanced search – ad-free! Although there is a minimum wage in India, for example, few multinational companies employ minimum wage workers, according to Gould`s colleagues at PricewaterhouseCoopers Pvt. Ltd. in Bangalore. Also, minimum wages in India vary depending on location, job, and experience level. In addition, minimum wage employees are often paid in cash and usually receive salary elements as a lump sum. Vaughan-Whitehead tracks how minimum wages are compared to national average wages. In most European Union countries, the minimum wage is 40 to 50% of the average wage. The Social Charter of the Council of Europe recommends a threshold of 60 per cent for the minimum wage/average wage ratio.
In the United States, the minimum wage in 2011 was just over 30% of the median wage. For example, Mexican federal labor law applies to all workers in Mexico, regardless of their nationality or where an employment contract was signed. The law sets a minimum amount that employers must pay employees weekly or bi-weekly in cash, without deductions or deductions. According to PricewaterhouseCoopers-México, the minimum wage is set annually by the National Minimum Wage Commission. Mexico is divided into three zones, and daily minimums vary for each. In 2011, daily minimums by region ranged from 59.08 pesos to 62.66 pesos, all below $50 at the March 30 exchange rate. However, there is room for improvement in wages. In a number of countries, Vaughan-Whitehead continues, the minimum wage is too low.
Cambodia, Bangladesh and Russia are frequently cited as examples of countries where the minimum wage is well below the poverty line. These rates, along with low wages in certain industries – such as clothing and manufacturing – in low-wage countries have motivated a growing number of NGOs to promote the introduction of decent wages and fair wages. If these two ratios are perceived as fair and balanced by the employee, he will undoubtedly invest in his work and develop a strong commitment to the organization that employs him and will feel that he is being paid fairly and fairly. However, this sense of fairness can quickly give way to frustration and misunderstandings if the employee perceives the key figures analyzed as unfair. They will feel unfairly treated and will not hesitate, first, to invest less in their tasks; they will also be particularly unmotivated to do quality work; Eventually, they will leave the company without question. And while minimum wage rates should be part of international compensation research, Goldman and others agree that they remain only a starting point. These exercises pose a challenge because the definitions of “living wage” and “fair” wages are constantly evolving. Different organizations publish different standards, which often requires conversion to local currency – in this case, U.S.
dollars. 1 www2.illinois.gov/idol/laws-rules/fls/pages/minimum-wage-law.aspx At first glance, a country`s minimum wage rate may seem like a definitive starting point for compensation planning. On closer inspection, however, global minimum wage rates raise more questions about compensation and workforce planning than they answer, according to human resources professionals, compensation consultants, and labour and business law experts. The Fair Labor Standards Act (FLSA) establishes the minimum wage, overtime pay, youth employment records, and standards that affect employees in the private sector, federal, state, and local governments. Insured and non-exempt workers are entitled to a minimum wage of at least $7.25 per hour as of July 24, 2009. After 40 hours of work in a work week, overtime pay of at least one and a half times the regular rate of pay is required. The living wage is different from the minimum wage.3 A living wage is the amount of money needed to meet basic needs without relying on government assistance to survive. Unfortunately, a living wage is not obvious for all jobs. If you`re looking for a job, check to see if it`s a sought-after profession to help you earn a living or more. Human resources professionals can consult the International Labour Organization`s database containing information on minimum wages, but they should also take into account a number of conventions and issues relating to remuneration in a country. This model of analysis of the “equity” of a salary is based on the concrete contribution of each individual on the development of the company.
This so-called equity approach will, to some extent, justify some wage inequality. Since the amount of remuneration is directly related to value contributions, the difference in salary logically represents contributions of different value. The perception of “fair remuneration in the workplace” is explained and thus justified by the employee`s contribution of individual value. In practice, many companies use the Hay method, which is based on a “job weighing” method that aims to align individual contributions with company-wide compensation. (See bottom of article.) Global minimum wage rates also influence Goldman`s role in another way. He is responsible for adhering to the ethical purchasing guidelines that some Safariland customers require suppliers to follow. Some “communities want us to prove that we are not only paying above minimum wage, but also that we are paying a living wage,” Goldman says. Goldman used such reports. He finds them useful, although he points out that they can be costly for small employers. He notes that all wage data – publicly available or paid – usually needs to be supplemented with further research, especially if a company plans to enter a city or region of a developing country outside the two or three largest urban areas. “If I were working with my management team trying to decide where to open a new factory around the world, I wouldn`t be looking so closely at a country`s minimum wage,” said Adam Goldman, vice president of human resources at Safariland, a Jacksonville-based provider of law enforcement and security products and services. in Florida, and a subsidiary of BAE Systems.
“Fair wages.” Merriam-Webster.com Dictionary, Merriam-Webster, www.merriam-webster.com/dictionary/fair%20wage. Retrieved 11 October 2022. The recent yellow vest crisis has reignited the debate over the wage gap and what constitutes a “decent and dignified wage”. It is important to emphasize that the primary need of each employee to be able to provide for his family with dignity through his salary must be distinguished from the aforementioned notion of individual contribution. Regardless of the assessment of the contribution of personal value, the condition for a fair wage for all workers is the possibility that this wage will allow a person and his family to live in dignity and thus satisfy their basic needs (primary or physiological and security) without worrying or worrying about tomorrow. A salary perceived as “fair” is a salary whose financial reward is proportional to the contribution of a person. Other criteria are taken into account when considering what constitutes a “fair” wage, such as: Equality and fairness between employees. What is a fair wage? In this article, we will reflect on the different answers to this sensitive subject, deepening psychology, sociology, economics and human resources management. According to the work of Adams, a specialist in organizational psychology, the employee will evaluate the type of two key indicators when analyzing the amount of his individual compensation: on the one hand, he will analyze the ratio of his concrete contribution to the company and what he gives back, and on the other hand, he will directly compare his situation with that of his colleagues by comparing the ratio of his salary with his knowledge and expertise.
Personal contribution to that of his colleagues. Table: U.S. Federal Minimum Wage Rates, 1968-2012 (U.S. Department of Labor) Thus, the lower part of the pyramid contains the needs that must be met in order of priority: physiological needs on the one hand and security needs on the other. In addition, primary or biological needs such as sleep, food and clothing are met first. Then there are the security needs, which represent the need to live in a stable and protected environment. In light of these two categories of needs, we analyze people`s relationship to their salary. A salary that allows a comfortable standard of living therefore falls into the category of basic needs, but also into the category that reflects everyone`s need for security and stability. A fair wage is one that is considered “fair” by the employee.
This salary, received in return for the individual work performed, encourages the employee to invest more or less in his daily tasks, but also to keep his current job more or less long.