What is salary?

In economic theory in a broad sense, wages are a cash payment, which the employee is entitled to in compensation for his work. Different sources differ on the definition of wages. From the point of view of an employee, this is the price of labor resources spent on the production process. From the point of view of the employer, these are the costs of production and sales of products that are sent to pay for employees, etc. But it is equally important to know what is included in the salary, but today it is payment for the time worked (salary, tariff rates, additional payments and allowances), payment for unworked time (vacation pay, temporary disability benefits) and lump-sum payments (bonuses, assistance to leave, annual rewards).

According to its functions, wages should motivate a person to work, ensure the material needs of the worker and his family, ensure the professional and cultural level, stimulate an increase in labor activity.It must provide status, regulate the relationship between demand and supply of labor, and of course determine the measure of employee participation in total production costs.

Wage Types

Salary happens

  • time based (guaranteed monthly salary),
  • piecework (earnings directly depends on the intensity of labor).

But in order to assess how much wages meet the needs of an employee, it is necessary to distinguish between nominal and real wages.

  • Nominal wages - this is the amount that is accrued to the employee for a certain period of time for hours worked or products manufactured.
  • Real wages are the amount of material goods, goods and services that an employee can buy for the amount of money left over from nominal wages, the ambassadors for paying taxes and compulsory contributions.

What determines wages? First of all, from the supply and demand in the market. For example, recently the prestigious and highly paid profession of economist has lost its status due to an oversupply of novice specialists. The level of salary affects, oddly enough, age.Students and university graduates, as well as retirees, are less likely to uphold the wage increase requirements, while people between the ages of 24 and 45 are more interested in wage growth. The trade unions can influence the level of wages, legislation, but still the main factor is the qualification and active life position of the employee, his personal contribution and the level of responsibility for the work assigned.

How much do you earn

When looking for work, many people pay attention to such factors as average wages. This is an economic indicator, which is determined by dividing the total amount of accrued wages by the average number of employees of an enterprise, organization or sector of the national economy. But he gives only a vague idea of ​​the industry as a whole. In order to adequately estimate the wage rate, you need to take into account such a parameter as the wage rate - this is the price that the employer pays for the use of labor for a certain period of time. In the labor code, the wage rate is determined without taking into account bonuses and compensations and until the approach tax and contributions to the state insurance system are withheld.