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Wikipedia

Salary

A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. From the point of view of running a business, salary can also be viewed as the cost of acquiring and retaining human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.[1]

A salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.

Salaries are typically determined by comparing market pay-rates for people performing similar work in similar industries in the same region. Salary is also determined by leveling the pay rates and salary ranges established by an individual employer. Salary is also affected by the number of people available to perform the specific job in the employer's employment locale (supply and demand).[2]

History

First paid salary

While there is no first pay-stub for the first work-for-pay exchange, the first salaried work would have required a society advanced enough to have a barter system which allowed for the even exchange of goods or services between tradesmen. More significantly, it presupposes the existence of organized employers—perhaps a government or a religious body—that would facilitate work-for-hire exchanges on a regular enough basis to constitute salaried work. From this, most infer that the first salary would have been paid in a village or city during the Neolithic Revolution, sometime between 10,000 BCE and 6000 BCE.[1]

A cuneiform inscribed clay tablet dated about 3100 BCE provides a record of the daily beer rations for workers in Mesopotamia. The beer is represented by an upright jar with a pointed base. The symbol for rations is a human head eating from a bowl. Round and semicircular impressions represent the measurements.[3]

By the time of the Hebrew Book of Ezra (550 to 450 BCE), receiving salt from a person was synonymous with drawing sustenance, taking pay, or being in that person's service. At that time, salt production was strictly controlled by the monarchy or ruling elite. Depending on the translation of Ezra 4:14, the servants of King Artaxerxes I of Persia explain their loyalty variously as "because we are salted with the salt of the palace" or "because we have maintenance from the king" or "because we are responsible to the king".[1]

Salarium

Similarly, the Latin word salarium linked employment, salt, and soldiers, but the exact link is not very clear. More modern sources maintain instead that although Roman soldiers were typically paid in coin, the word salarium is derived from the word sal (salt) because at some point a soldier's salary may have been an allowance for the purchase of salt[4] or the price of having soldiers conquer salt supplies and guard the Salt Roads (Via Salaria) that led to Rome.[5][6] However, there is no ancient evidence for either of these hypotheses.[7]

Some people even claim that the word soldier itself comes from the Latin sal dare (to give salt),[citation needed] but mainstream sources disagree,[8][9] noting that the word soldier more likely derives from the gold solidus,[10] with which soldiers were known to have been paid[citation needed].

Roman empire and medieval and pre-industrial Europe

Regardless of the exact connection, the salarium paid to Roman soldiers has defined a form of work-for-hire ever since in the Western world, and gave rise to such expressions as "being worth one's salt".[1]

Within the Roman Empire or (later) medieval and pre-industrial Europe and its mercantile colonies, salaried employment appears to have been relatively rare and mostly limited to servants and higher status roles, especially in government service. Such roles were largely remunerated by the provision of lodging, food, and livery clothes (i.e., "food, clothing, and shelter" in modern idiom). Many courtiers, such as valets de chambre, in late medieval courts were paid annual amounts, sometimes supplemented by large if unpredictable extra payments. At the other end of the social scale, those in many forms of employment either received no pay, as with slavery (although many slaves were paid some money at least), serfdom, and indentured servitude, or received only a fraction of what was produced, as with sharecropping. Other common alternative models of work included self- or co-operative employment, as with masters in artisan guilds, who often had salaried assistants, or corporate work and ownership, as with medieval universities and monasteries.[1]

Commercial Revolution

Even many of the jobs initially created by the Commercial Revolution in the years from 1520 to 1650 and later during Industrialisation in the 18th and 19th centuries would not have been salaried, but, to the extent they were paid as employees, probably paid an hourly or daily wage or paid per unit produced (also called piece work).[1]

Share in earnings

In corporations of this time, such as the several East India Companies, many managers would have been remunerated as owner-shareholders. Such a remuneration scheme is still common today in accounting, investment, and law firm partnerships where the leading professionals are equity partners, and do not technically receive a salary, but rather make a periodic "draw" against their share of annual earnings.[1]

Second Industrial Revolution

From 1870 to 1930, the Second Industrial Revolution gave rise to the modern business corporation powered by railroads, electricity and the telegraph and telephone. This era saw the widespread emergence of a class of salaried executives and administrators who served the new, large-scale enterprises being created.

New managerial jobs lent themselves to salaried employment, in part because the effort and output of "office work" were hard to measure hourly or piecewise, and in part because they did not necessarily draw remuneration from share ownership.[1]

As Japan rapidly industrialized in the 20th century, the idea of office work was novel enough that a new Japanese word (salaryman) was coined to describe those who performed it, as well as referencing their remuneration.[1]

20th century

In the 20th century, the rise of the service economy made salaried employment even more common in developed countries, where the relative share of industrial production jobs declined, and the share of executive, administrative, computer, marketing, and creative jobs—all of which tended to be salaried—increased.[1]

Salary and other forms of payment today

Today, the concept of a salary continues to evolve as part of a system of the total compensation that employers offer to employees. Salary (also now known as fixed pay) is coming to be seen as part of a "total rewards" system which includes bonuses, incentive pay, commissions, benefits and perquisites (or perks), and various other tools which help employers link rewards to an employee's measured performance.[1]

Compensation has evolved considerably. Consider the change from the days of and before the industrial evolution, when a job was held for a lifetime, to the fact that, from 1978 to 2008, individuals who aged from 18 to 44, held an average number of 11 jobs.[11] Compensation has evolved gradually moving away from fixed short-term immediate compensation towards fixed + variable outcomes-based compensation.[citation needed] An increase in knowledge-based work has also led to pursuit of partner (as opposed to employee) like engagement.

By country

Botswana

In Botswana, salaries are almost entirely paid on a monthly basis with pay dates falling on different dates of the second half of the month. Pay day usually ranges from the 15th of the month to the last day. The date of disbursement of the salary is usually determined by the company and in some cases in conjunction with the recognized Workers Union.

The Botswana Employment Act Cap 47:01 Chapter VII regulates the aspect of protection of wages in the contracts of employment. The minimum and maximum wage payment period with the exception of casual employees should not be less than one week or more than a month, and where not expressly stipulated a month is the default wage period per section 75 of the Act payable before the third working day after the wage period. The wages are to be paid during working hours at the place of employment, or in any other way, such as through a bank account with the consent of the employee. Salaries should be made in legal tender, however, part payment in kind is not prohibited provided it is appropriate for the personal use and benefit of employee and his family, and the value attributable to such payment in kind is fair and reasonable. The payment in kind should not exceed forty per cent of the total amount paid out to the employee.

The minimum wage is set, adjusted and can even be abolished by the Minister on the advice of the Minimum Wages Advisory Board for specified trade categories. The stipulated categories include building, construction, hotel, catering, wholesale, watchmen, the domestic service sector, the agricultural sector etc. The current minimum wages set for these sectors are set out in the Subsidiary legislation in the Act.

Women on maternity leave are entitled to 25% of their salaries as stipulated by the Employment Act but the majority of the companies pay out at about 50% for the period.[12]

Denmark

By working for the Danish Government, it has been agreed under political agreements, that the salary is dependent on the seniority, education, and of a qualification allowance.

European Union

According to European law, the movement of capital, services and (human) resources is unlimited between member states. Salary determination, such as minimum wage, is still the prerogative of each member state. Other social benefits, associated with salaries are also determined on member-state level.[13]

India

In India, salaries are generally paid on the last working day of the month (Government, Public sector departments, Multi-national organisations as well as majority of other private sector companies). According to the Payment of Wages Act, if a company has less than 1,000 Employees, salary is paid by the 7th of every month. If a company has more than 1,000 Employees, salary is paid by the 10th of every month.[14]

Minimum wages in India are governed by the Minimum Wages Act, 1948.[15] Employees in India are notified of their salary being increased through a hard copy letter given to them.[16]

Italy

In Italy, the Constitution guarantees a minimum wage, as stated in Article 36, Paragraph 1[17]

"Workers have the right to a remuneration commensurate to the quantity and quality of their work and in any case such as to ensure them and their families a free and dignified existence."

This constitutional guarantee is implemented not through a specific legislation, but rather through collective bargaining which sets minimum wage standards in a sector by sector basis. Collective bargaining is protected by trade unions, which have constitutional rights such as legal personality. The Constitution also guarantees equal pay for women, as stated in Article 37, Paragraph 1[17]

"Working women are entitled to equal rights and, for comparable jobs, equal pay as men."

Japan

In Japan, owners would notify employees of salary increases through "jirei". The concept still exists and has been replaced with an electronic form, or E-mail in larger companies.[18] The position and world of "salarymen" is open to only one third of Japanese men. From school age these young potentials are groomed and pre-selected to one day join a company as a "salaryman". The selection process is rigorous and thereafter the process initiation speaks of total dedication to the company.[19]

Poland

Article 65 section 4 of Polish Constitution states that "the minimum amount of salary for work or the method of determining this amount will be specified by separate act".[20] In consequence, Polish Parliament (Sejm) has enacted an Act of 10 October 2002 on the minimum salary for work,[21] which determines the rules and the procedure of establishing minimum salary for each year. The amount of the minimum salary (for employment contracts) and the amount of minimum hourly rate (for service contacts) is announced by the Council of Ministers by September 15 each year in the Official Journal of the Republic of Poland "Monitor Polski".[22] As a result, full-time employees cannot be offered monthly salary lower than the statutory minimum, part-time employees are also covered by the statutory minimum calculated proportionally.[23]

South Africa

Minimum wages are used widely in developing countries to protect vulnerable workers, reduce wage inequality, and lift the working poor out of poverty. The political popularity of minimum wages stems in part from the fact that the policy offers a means for redistributing income without having to increase government spending or establish formal transfer mechanisms.[24] The challenge to policymakers is to find that wage level that is considered fair given workers' needs and the cost of living, but does not harm employment or a country's global competitiveness.[25]

South African median employee earning is R2800 a month (USD 189.45) and the average earning is around R8500. These figures are found in SA statistics. Indeed, they reflect the huge gap in the South African society with a large proportion of the population under poverty line that does not have the same opportunities for employment.[26]

Median monthly earnings of white (R9500) and Indian/Asian (R6000) population were substantially higher than the median monthly earnings of their coloured (R2652) and black African (R2167) counterparts. Black Africans earned 22,% of what the white population earned; 36,1% of what Indians/Asians earned; and 81,7% of what the coloured population earned. In the bottom 5%, black Africans earned R500 or less per month while the white population earned R2 000 or less, while in the top 5% they earned R12 567 or more compared to the white population who earned R34000 or more per month.[27]

The Netherlands

In the Netherlands the salary which occurs most frequently is referred to as Jan Modaal. The term "modaal" is derived from the statistical term Modus. If the government's macro economic policy negatively affects this "Modaal" income or salary-group often the policy is adjusted in order to protect this group of income earners.[28] The Dutch word "soldij" can be directly linked to the word "soldaat" or soldier, which finds its origin in the word for the gold coin solidus, with which soldiers were paid during the Roman Empire.

The Netherlands is in the top 5 of the highest salary-paying countries in the EU. The focus has been on the salary levels and accompanying bonuses whereas secondary benefits, though present, has been downplayed yet that is changing. The Netherlands claims a 36th position when it comes to secondary benefits when compared to other countries in Europe.[29]

The minimum wage is determined through collective labor negotiations (CAOs). The minimum wage is age dependent; the legal minimum wage for a 16-year-old is lower than, for instance, a 23-year-old (full minimum wage). Adjustments to the minimum wage are made twice a year; on January 1 and on July 1. The minimum wage for a 21-year-old on January 1, 2013 is 1,065.30 Euro netto per month and on July 1, 2013 this minimum wage is 1,071.40 Euro netto per month.[30] For a 23 year old on 1 January 2014 is 1485,60 Euro gross salary / month plus 8% holiday subsidy so 1604,45 Euro gross salary / month

United States

In the United States, the distinction between periodic salaries (which are normally paid regardless of hours worked) and hourly wages (meeting a minimum wage test and providing for overtime) was first codified by the Fair Labor Standards Act of 1938. At that time, five categories were identified as being "exempt" from minimum wage and overtime protections, and therefore salariable. In 1991, some computer workers were added as a sixth category but effective August 23, 2004 the categories were revised and reduced back down to five (executive, administrative, professional, computer, and outside sales employees).

In June 2015 the Department of Labor proposed raising "the salary threshold from $455 a week (the equivalent of $23,660 a year) to about $970 a week ($50,440 a year) in 2016"[31] On May 18, 2016 the Final rule updating the overtime regulations was announced. Effective December 1, 2016 it says:

"The Final Rule sets the standard salary level at the 40th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week, equivalent to $47,476 per year for a full-year worker)."[32][33]

"The Final Rule sets the HCE total annual compensation level equal to the 90th percentile of earnings of full-time salaried workers nationally ($134,004 annually). To be exempt as an HCE, an employee must also receive at least the new standard salary amount of $913 per week on a salary or fee basis and pass a minimal duties test."[32]

"Although the FLSA ensures minimum wage and overtime pay protections for most employees covered by the Act, some workers, including bona fide EAP employees, are exempt from those protections. Since 1940, the Department’s regulations have generally required each of three tests to be met for the FLSA’s EAP exemption to apply:

  1. the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (“salary basis test”);
  2. the amount of salary paid must meet a minimum specified amount (“salary level test”); and
  3. the employee’s job duties must primarily involve executive, administrative, or professional duties as defined by the regulations (“duties test”). "[32]

"The Final Rule includes a mechanism to automatically update the standard salary level requirement every three years to ensure that it remains a meaningful test for distinguishing between overtime-protected white collar workers and bona fide EAP workers who may not be entitled to overtime pay and to provide predictability and more graduated salary changes for employers. Specifically, the standard salary level will be updated to maintain a threshold equal to the 40th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region."[32]

"For the first time, employers will be able to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the standard salary level. Such payments may include, for example, nondiscretionary incentive bonuses tied to productivity and profitability."[32]

A general rule for comparing periodic salaries to hourly wages is based on a standard 40-hour work week with 50 weeks per year (minus two weeks for vacation). (Example: $40,000/year periodic salary divided by 50 weeks equals $800/week. Divide $800/week by 40 standard hours equals $20/hour).

Zimbabwe

Zimbabwe operates on a two tier system being wages and salaries. Wages are managed by the National Employment Council (NEC). Each sector has its own NEC; i.e. agriculture, communications, mining, catering, educational institutions, etc. On the council are representatives from the unions and the employers. The public sector is under the Public Service Commission and wages and salaries are negotiated there.

Wages are negotiated annually or biennially for minimum wages, basic working conditions and remunerations. If there is a stalemate it goes for arbitration with the Ministry of labour. The ruling will become binding on all companies in that industry. Industries often then use their associations to negotiate and air their views. For example, the mining industry nominates an employee within the chamber of mines to attend all meetings and subcommittee with industry players is a forum for discussions.

Salaries are negotiated by the respective employees. However, NEC obviously affects the relativity and almost acts as a barometer for salaried staff. Salaries and wages in Zimbabwe are normally paid monthly. Most companies' pay around the 20th does allow various statutory payments and processing for the month end. Government employees are also staggered to ease the cash flow though teachers are paid around mid-month being 16th. Agricultural workers are normally paid on the very last day of the month as they are contract employees.

Zimbabwe is a highly banked society with most salaries being banked. All government employees are paid through the bank. Since "dollarisation" (movement from the Zimbabwean dollar to USD) Zimbabwe has been moving toward a more informal sector and these are paid in 'brown envelopes'.

PAYE (Pay As You Earn) is a significant contributor to tax being 45%.[34] Given the high unemployment rate the tax is quite heavy. This of course captures those that pay and keep records properly. The average salary is probably $250. This is skewed downwards by the large number of government employees whose average salary is around there. At the top end salaries are quite competitive and this is to be able to attract the right skills though the cost of living is high so it balances this out. A top-earning Zimbabwean spends a lot more money on necessities than say a South African top earner. This is more evident when a comparison with USA or England is done. The need to have a generator, borehole or buy water or take care of the extended family since there is no welfare given the government's financial position.

In the hyperinflation days salaries was the cheapest factor of production given that it was paid so irregularly though it went to twice monthly. As workers could not withdraw their money, remuneration was often in the following forms:

  • Fuel coupons were most popular and individuals were paid in liters of fuel
  • The product that the company is selling; e.g. pork/meat for the abattoirs
  • Foreign currency payment was illegal and one had to seek special dispensation or had to show that their revenue/funding was received in foreign currency like NGOs or exporters
  • Shares for the listed companies on the stock market (not in the traditional option scheme but just getting shares)

Prices were price controlled. By remunerating in the product it basically allowed the employees to side sell for real value.

Zimbabwe traditionally had a competitive advantage in its cost of labor. With "dollarisation" and higher cost of living this is slowly being eroded. For example, an average farm employee probably earned the equivalent of $20 but could buy a basket of goods currently worth $500. Now, the average farm worker earns $80 and that basket of goods is, as mentioned, $500, the basket being soap, meal, school fees, protein foods, etc.

Negotiation of salary

Prior to the acceptance of an employment offer, the prospective employee usually has the opportunity to negotiate the terms of the offer. This primarily focuses on salary, but extends to benefits, work arrangements, and other amenities as well. Negotiating salary can potentially lead the prospective employee to a higher salary. In fact, a 2009 study of employees indicated that those who negotiated salary saw an average increase of $4,913 from their original salary offer.[35] In addition, the employer is able to feel more confident that they have hired an employee with strong interpersonal skills and the ability to deal with conflict. Negotiating salary will thus likely yield an overall positive outcome for both sides of the bargaining table.

Perhaps the most important aspect of salary negotiation is the level of preparation put in by the prospective employee. Background research on comparable salaries will help the prospective employee understand the appropriate range for that position. Assessment of alternative offers that the prospective employee has already received can help in the negotiation process. Research on the actual company itself will help identify where concessions can be made by the company and what may potentially be considered off-limits. These items, and more, can be organized into a negotiations planning document that can be used in the evaluation of the offers received from the employer.

Effects of perspective

The same 2009 study highlighted the personality differences and negotiation mind-sets that contributed to successful outcomes. Overall, individuals who are risk-averse (e.g., worried about appearing ungrateful for the job offer) tended to avoid salary negotiations or use very weak approaches to the negotiation process. On the contrary, those who were more risk-tolerant engaged in negotiations more frequently and demonstrated superior outcomes. Individuals who approached the negotiation as a distributive problem (i.e. viewing the a higher salary as a win for him/her and a loss to the employer) ended up with an increased salary, but lower rate of satisfaction upon completion. Those who approached the negotiation as an integrative problem (i.e. viewing the negotiation process an opportunity to expand the realm of possibilities and help both parties achieve a “win” outcome) were able to both secure an increased salary and an outcome they were truly satisfied with.[35]

Gender differences

Salary disparities between men and women may partially be explained by differences in negotiation tactics used by men and women. Although men and women are equally likely to initiate in a salary negotiation with employers, men will achieve higher outcomes than women by about 2% of starting salary[36] Studies have indicated that men tend to use active negotiation tactics of directly asking for a higher salary, while women tend to use more of an indirect approach by emphasizing self-promotion tactics (e.g. explaining the motivation to be a good employee).[37] Other research indicates that early-childhood play patterns may influence the way men and women negotiate. Men and women tend to view salary differently in terms of relative importance. Overall level of confidence in a negotiation may also be a determinant of why men tend to achieve higher outcomes in salary negotiations.[38] Finally, the awareness of this stereotype alone may directly cause women to achieve lower outcomes as one study indicates.[39] Regardless of the cause, the outcome yields a disparity between men and women that contributes to the overall wage gap observed in many nations.

The Constitution of the Republic of South Africa 239 provides for the right to fair labour practices in terms of article 23. article 9 of the Constitution makes provision for equality in the Bill of Rights, which an employee may raise in the event of an equal pay dispute. In terms of article 9(1) “everyone is equal before the law and has the right to equal protection and benefit of the law'” Furthermore, “the state may not unfairly discriminate directly or indirectly against anyone on one or more grounds, including race, gender, sex, pregnancy, marital status, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, belief, culture, language, and birth.”[40] South African employees who were in paid employment had median monthly earnings of R2 800. The median monthly earnings for men (R3 033) were higher than that for women (R2 340) - women in paid employment earned 77,1% of what men did.[27]

Role of weight

Research done in 2011 showed that the “weight double standard” may be more complex that what past research has suggested. This is not only relevant to women, but also to men. The smallest income gap differences occur at thin weights (where men are penalized and women are rewarded) and the opposite happens at heavier weights, where the women are affected more negatively.[41]

See also

References

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  40. ^ . Archived from the original on 4 March 2016. Retrieved 5 March 2016.
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External link

  Media related to Wages at Wikimedia Commons

salary, confused, with, celery, salary, form, periodic, payment, from, employer, employee, which, specified, employment, contract, contrasted, with, piece, wages, where, each, hour, other, unit, paid, separately, rather, than, periodic, basis, from, point, vie. Not to be confused with celery A salary is a form of periodic payment from an employer to an employee which may be specified in an employment contract It is contrasted with piece wages where each job hour or other unit is paid separately rather than on a periodic basis From the point of view of running a business salary can also be viewed as the cost of acquiring and retaining human resources for running operations and is then termed personnel expense or salary expense In accounting salaries are recorded in payroll accounts 1 A salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed Salary is commonly paid in fixed intervals for example monthly payments of one twelfth of the annual salary Salaries are typically determined by comparing market pay rates for people performing similar work in similar industries in the same region Salary is also determined by leveling the pay rates and salary ranges established by an individual employer Salary is also affected by the number of people available to perform the specific job in the employer s employment locale supply and demand 2 Contents 1 History 1 1 First paid salary 1 2 Salarium 1 3 Roman empire and medieval and pre industrial Europe 1 4 Commercial Revolution 1 5 Share in earnings 1 6 Second Industrial Revolution 1 7 20th century 1 8 Salary and other forms of payment today 2 By country 2 1 Botswana 2 2 Denmark 2 3 European Union 2 4 India 2 5 Italy 2 6 Japan 2 7 Poland 2 8 South Africa 2 9 The Netherlands 2 10 United States 2 11 Zimbabwe 3 Negotiation of salary 3 1 Effects of perspective 3 2 Gender differences 3 3 Role of weight 4 See also 5 References 6 External linkHistory EditFirst paid salary Edit This section possibly contains original research Please improve it by verifying the claims made and adding inline citations Statements consisting only of original research should be removed November 2009 Learn how and when to remove this template message While there is no first pay stub for the first work for pay exchange the first salaried work would have required a society advanced enough to have a barter system which allowed for the even exchange of goods or services between tradesmen More significantly it presupposes the existence of organized employers perhaps a government or a religious body that would facilitate work for hire exchanges on a regular enough basis to constitute salaried work From this most infer that the first salary would have been paid in a village or city during the Neolithic Revolution sometime between 10 000 BCE and 6000 BCE 1 A cuneiform inscribed clay tablet dated about 3100 BCE provides a record of the daily beer rations for workers in Mesopotamia The beer is represented by an upright jar with a pointed base The symbol for rations is a human head eating from a bowl Round and semicircular impressions represent the measurements 3 By the time of the Hebrew Book of Ezra 550 to 450 BCE receiving salt from a person was synonymous with drawing sustenance taking pay or being in that person s service At that time salt production was strictly controlled by the monarchy or ruling elite Depending on the translation of Ezra 4 14 the servants of King Artaxerxes I of Persia explain their loyalty variously as because we are salted with the salt of the palace or because we have maintenance from the king or because we are responsible to the king 1 Salarium Edit Similarly the Latin word salarium linked employment salt and soldiers but the exact link is not very clear More modern sources maintain instead that although Roman soldiers were typically paid in coin the word salarium is derived from the word sal salt because at some point a soldier s salary may have been an allowance for the purchase of salt 4 or the price of having soldiers conquer salt supplies and guard the Salt Roads Via Salaria that led to Rome 5 6 However there is no ancient evidence for either of these hypotheses 7 Some people even claim that the word soldier itself comes from the Latin sal dare to give salt citation needed but mainstream sources disagree 8 9 noting that the word soldier more likely derives from the gold solidus 10 with which soldiers were known to have been paid citation needed Roman empire and medieval and pre industrial Europe Edit Regardless of the exact connection the salarium paid to Roman soldiers has defined a form of work for hire ever since in the Western world and gave rise to such expressions as being worth one s salt 1 Within the Roman Empire or later medieval and pre industrial Europe and its mercantile colonies salaried employment appears to have been relatively rare and mostly limited to servants and higher status roles especially in government service Such roles were largely remunerated by the provision of lodging food and livery clothes i e food clothing and shelter in modern idiom Many courtiers such as valets de chambre in late medieval courts were paid annual amounts sometimes supplemented by large if unpredictable extra payments At the other end of the social scale those in many forms of employment either received no pay as with slavery although many slaves were paid some money at least serfdom and indentured servitude or received only a fraction of what was produced as with sharecropping Other common alternative models of work included self or co operative employment as with masters in artisan guilds who often had salaried assistants or corporate work and ownership as with medieval universities and monasteries 1 Commercial Revolution Edit Even many of the jobs initially created by the Commercial Revolution in the years from 1520 to 1650 and later during Industrialisation in the 18th and 19th centuries would not have been salaried but to the extent they were paid as employees probably paid an hourly or daily wage or paid per unit produced also called piece work 1 Share in earnings Edit In corporations of this time such as the several East India Companies many managers would have been remunerated as owner shareholders Such a remuneration scheme is still common today in accounting investment and law firm partnerships where the leading professionals are equity partners and do not technically receive a salary but rather make a periodic draw against their share of annual earnings 1 Second Industrial Revolution Edit From 1870 to 1930 the Second Industrial Revolution gave rise to the modern business corporation powered by railroads electricity and the telegraph and telephone This era saw the widespread emergence of a class of salaried executives and administrators who served the new large scale enterprises being created New managerial jobs lent themselves to salaried employment in part because the effort and output of office work were hard to measure hourly or piecewise and in part because they did not necessarily draw remuneration from share ownership 1 As Japan rapidly industrialized in the 20th century the idea of office work was novel enough that a new Japanese word salaryman was coined to describe those who performed it as well as referencing their remuneration 1 20th century Edit In the 20th century the rise of the service economy made salaried employment even more common in developed countries where the relative share of industrial production jobs declined and the share of executive administrative computer marketing and creative jobs all of which tended to be salaried increased 1 Salary and other forms of payment today Edit Today the concept of a salary continues to evolve as part of a system of the total compensation that employers offer to employees Salary also now known as fixed pay is coming to be seen as part of a total rewards system which includes bonuses incentive pay commissions benefits and perquisites or perks and various other tools which help employers link rewards to an employee s measured performance 1 Compensation has evolved considerably Consider the change from the days of and before the industrial evolution when a job was held for a lifetime to the fact that from 1978 to 2008 individuals who aged from 18 to 44 held an average number of 11 jobs 11 Compensation has evolved gradually moving away from fixed short term immediate compensation towards fixed variable outcomes based compensation citation needed An increase in knowledge based work has also led to pursuit of partner as opposed to employee like engagement By country EditBotswana Edit In Botswana salaries are almost entirely paid on a monthly basis with pay dates falling on different dates of the second half of the month Pay day usually ranges from the 15th of the month to the last day The date of disbursement of the salary is usually determined by the company and in some cases in conjunction with the recognized Workers Union The Botswana Employment Act Cap 47 01 Chapter VII regulates the aspect of protection of wages in the contracts of employment The minimum and maximum wage payment period with the exception of casual employees should not be less than one week or more than a month and where not expressly stipulated a month is the default wage period per section 75 of the Act payable before the third working day after the wage period The wages are to be paid during working hours at the place of employment or in any other way such as through a bank account with the consent of the employee Salaries should be made in legal tender however part payment in kind is not prohibited provided it is appropriate for the personal use and benefit of employee and his family and the value attributable to such payment in kind is fair and reasonable The payment in kind should not exceed forty per cent of the total amount paid out to the employee The minimum wage is set adjusted and can even be abolished by the Minister on the advice of the Minimum Wages Advisory Board for specified trade categories The stipulated categories include building construction hotel catering wholesale watchmen the domestic service sector the agricultural sector etc The current minimum wages set for these sectors are set out in the Subsidiary legislation in the Act Women on maternity leave are entitled to 25 of their salaries as stipulated by the Employment Act but the majority of the companies pay out at about 50 for the period 12 Denmark Edit By working for the Danish Government it has been agreed under political agreements that the salary is dependent on the seniority education and of a qualification allowance European Union Edit According to European law the movement of capital services and human resources is unlimited between member states Salary determination such as minimum wage is still the prerogative of each member state Other social benefits associated with salaries are also determined on member state level 13 India Edit In India salaries are generally paid on the last working day of the month Government Public sector departments Multi national organisations as well as majority of other private sector companies According to the Payment of Wages Act if a company has less than 1 000 Employees salary is paid by the 7th of every month If a company has more than 1 000 Employees salary is paid by the 10th of every month 14 Minimum wages in India are governed by the Minimum Wages Act 1948 15 Employees in India are notified of their salary being increased through a hard copy letter given to them 16 Italy Edit In Italy the Constitution guarantees a minimum wage as stated in Article 36 Paragraph 1 17 Workers have the right to a remuneration commensurate to the quantity and quality of their work and in any case such as to ensure them and their families a free and dignified existence This constitutional guarantee is implemented not through a specific legislation but rather through collective bargaining which sets minimum wage standards in a sector by sector basis Collective bargaining is protected by trade unions which have constitutional rights such as legal personality The Constitution also guarantees equal pay for women as stated in Article 37 Paragraph 1 17 Working women are entitled to equal rights and for comparable jobs equal pay as men Japan Edit Further information Salaryman In Japan owners would notify employees of salary increases through jirei The concept still exists and has been replaced with an electronic form or E mail in larger companies 18 The position and world of salarymen is open to only one third of Japanese men From school age these young potentials are groomed and pre selected to one day join a company as a salaryman The selection process is rigorous and thereafter the process initiation speaks of total dedication to the company 19 Poland Edit Article 65 section 4 of Polish Constitution states that the minimum amount of salary for work or the method of determining this amount will be specified by separate act 20 In consequence Polish Parliament Sejm has enacted an Act of 10 October 2002 on the minimum salary for work 21 which determines the rules and the procedure of establishing minimum salary for each year The amount of the minimum salary for employment contracts and the amount of minimum hourly rate for service contacts is announced by the Council of Ministers by September 15 each year in the Official Journal of the Republic of Poland Monitor Polski 22 As a result full time employees cannot be offered monthly salary lower than the statutory minimum part time employees are also covered by the statutory minimum calculated proportionally 23 South Africa Edit Minimum wages are used widely in developing countries to protect vulnerable workers reduce wage inequality and lift the working poor out of poverty The political popularity of minimum wages stems in part from the fact that the policy offers a means for redistributing income without having to increase government spending or establish formal transfer mechanisms 24 The challenge to policymakers is to find that wage level that is considered fair given workers needs and the cost of living but does not harm employment or a country s global competitiveness 25 South African median employee earning is R2800 a month USD 189 45 and the average earning is around R8500 These figures are found in SA statistics Indeed they reflect the huge gap in the South African society with a large proportion of the population under poverty line that does not have the same opportunities for employment 26 Median monthly earnings of white R9500 and Indian Asian R6000 population were substantially higher than the median monthly earnings of their coloured R2652 and black African R2167 counterparts Black Africans earned 22 of what the white population earned 36 1 of what Indians Asians earned and 81 7 of what the coloured population earned In the bottom 5 black Africans earned R500 or less per month while the white population earned R2 000 or less while in the top 5 they earned R12 567 or more compared to the white population who earned R34000 or more per month 27 The Netherlands Edit In the Netherlands the salary which occurs most frequently is referred to as Jan Modaal The term modaal is derived from the statistical term Modus If the government s macro economic policy negatively affects this Modaal income or salary group often the policy is adjusted in order to protect this group of income earners 28 The Dutch word soldij can be directly linked to the word soldaat or soldier which finds its origin in the word for the gold coin solidus with which soldiers were paid during the Roman Empire The Netherlands is in the top 5 of the highest salary paying countries in the EU The focus has been on the salary levels and accompanying bonuses whereas secondary benefits though present has been downplayed yet that is changing The Netherlands claims a 36th position when it comes to secondary benefits when compared to other countries in Europe 29 The minimum wage is determined through collective labor negotiations CAOs The minimum wage is age dependent the legal minimum wage for a 16 year old is lower than for instance a 23 year old full minimum wage Adjustments to the minimum wage are made twice a year on January 1 and on July 1 The minimum wage for a 21 year old on January 1 2013 is 1 065 30 Euro netto per month and on July 1 2013 this minimum wage is 1 071 40 Euro netto per month 30 For a 23 year old on 1 January 2014 is 1485 60 Euro gross salary month plus 8 holiday subsidy so 1604 45 Euro gross salary month United States Edit Further information Income in the United States In the United States the distinction between periodic salaries which are normally paid regardless of hours worked and hourly wages meeting a minimum wage test and providing for overtime was first codified by the Fair Labor Standards Act of 1938 At that time five categories were identified as being exempt from minimum wage and overtime protections and therefore salariable In 1991 some computer workers were added as a sixth category but effective August 23 2004 the categories were revised and reduced back down to five executive administrative professional computer and outside sales employees In June 2015 the Department of Labor proposed raising the salary threshold from 455 a week the equivalent of 23 660 a year to about 970 a week 50 440 a year in 2016 31 On May 18 2016 the Final rule updating the overtime regulations was announced Effective December 1 2016 it says The Final Rule sets the standard salary level at the 40th percentile of weekly earnings of full time salaried workers in the lowest wage Census Region currently the South 913 per week equivalent to 47 476 per year for a full year worker 32 33 The Final Rule sets the HCE total annual compensation level equal to the 90th percentile of earnings of full time salaried workers nationally 134 004 annually To be exempt as an HCE an employee must also receive at least the new standard salary amount of 913 per week on a salary or fee basis and pass a minimal duties test 32 Although the FLSA ensures minimum wage and overtime pay protections for most employees covered by the Act some workers including bona fide EAP employees are exempt from those protections Since 1940 the Department s regulations have generally required each of three tests to be met for the FLSA s EAP exemption to apply the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed salary basis test the amount of salary paid must meet a minimum specified amount salary level test and the employee s job duties must primarily involve executive administrative or professional duties as defined by the regulations duties test 32 The Final Rule includes a mechanism to automatically update the standard salary level requirement every three years to ensure that it remains a meaningful test for distinguishing between overtime protected white collar workers and bona fide EAP workers who may not be entitled to overtime pay and to provide predictability and more graduated salary changes for employers Specifically the standard salary level will be updated to maintain a threshold equal to the 40th percentile of weekly earnings of full time salaried workers in the lowest wage Census Region 32 For the first time employers will be able to use nondiscretionary bonuses and incentive payments including commissions to satisfy up to 10 percent of the standard salary level Such payments may include for example nondiscretionary incentive bonuses tied to productivity and profitability 32 A general rule for comparing periodic salaries to hourly wages is based on a standard 40 hour work week with 50 weeks per year minus two weeks for vacation Example 40 000 year periodic salary divided by 50 weeks equals 800 week Divide 800 week by 40 standard hours equals 20 hour Zimbabwe Edit Zimbabwe operates on a two tier system being wages and salaries Wages are managed by the National Employment Council NEC Each sector has its own NEC i e agriculture communications mining catering educational institutions etc On the council are representatives from the unions and the employers The public sector is under the Public Service Commission and wages and salaries are negotiated there Wages are negotiated annually or biennially for minimum wages basic working conditions and remunerations If there is a stalemate it goes for arbitration with the Ministry of labour The ruling will become binding on all companies in that industry Industries often then use their associations to negotiate and air their views For example the mining industry nominates an employee within the chamber of mines to attend all meetings and subcommittee with industry players is a forum for discussions Salaries are negotiated by the respective employees However NEC obviously affects the relativity and almost acts as a barometer for salaried staff Salaries and wages in Zimbabwe are normally paid monthly Most companies pay around the 20th does allow various statutory payments and processing for the month end Government employees are also staggered to ease the cash flow though teachers are paid around mid month being 16th Agricultural workers are normally paid on the very last day of the month as they are contract employees Zimbabwe is a highly banked society with most salaries being banked All government employees are paid through the bank Since dollarisation movement from the Zimbabwean dollar to USD Zimbabwe has been moving toward a more informal sector and these are paid in brown envelopes PAYE Pay As You Earn is a significant contributor to tax being 45 34 Given the high unemployment rate the tax is quite heavy This of course captures those that pay and keep records properly The average salary is probably 250 This is skewed downwards by the large number of government employees whose average salary is around there At the top end salaries are quite competitive and this is to be able to attract the right skills though the cost of living is high so it balances this out A top earning Zimbabwean spends a lot more money on necessities than say a South African top earner This is more evident when a comparison with USA or England is done The need to have a generator borehole or buy water or take care of the extended family since there is no welfare given the government s financial position In the hyperinflation days salaries was the cheapest factor of production given that it was paid so irregularly though it went to twice monthly As workers could not withdraw their money remuneration was often in the following forms Fuel coupons were most popular and individuals were paid in liters of fuel The product that the company is selling e g pork meat for the abattoirs Foreign currency payment was illegal and one had to seek special dispensation or had to show that their revenue funding was received in foreign currency like NGOs or exporters Shares for the listed companies on the stock market not in the traditional option scheme but just getting shares Prices were price controlled By remunerating in the product it basically allowed the employees to side sell for real value Zimbabwe traditionally had a competitive advantage in its cost of labor With dollarisation and higher cost of living this is slowly being eroded For example an average farm employee probably earned the equivalent of 20 but could buy a basket of goods currently worth 500 Now the average farm worker earns 80 and that basket of goods is as mentioned 500 the basket being soap meal school fees protein foods etc Negotiation of salary EditPrior to the acceptance of an employment offer the prospective employee usually has the opportunity to negotiate the terms of the offer This primarily focuses on salary but extends to benefits work arrangements and other amenities as well Negotiating salary can potentially lead the prospective employee to a higher salary In fact a 2009 study of employees indicated that those who negotiated salary saw an average increase of 4 913 from their original salary offer 35 In addition the employer is able to feel more confident that they have hired an employee with strong interpersonal skills and the ability to deal with conflict Negotiating salary will thus likely yield an overall positive outcome for both sides of the bargaining table Perhaps the most important aspect of salary negotiation is the level of preparation put in by the prospective employee Background research on comparable salaries will help the prospective employee understand the appropriate range for that position Assessment of alternative offers that the prospective employee has already received can help in the negotiation process Research on the actual company itself will help identify where concessions can be made by the company and what may potentially be considered off limits These items and more can be organized into a negotiations planning document that can be used in the evaluation of the offers received from the employer Effects of perspective Edit The same 2009 study highlighted the personality differences and negotiation mind sets that contributed to successful outcomes Overall individuals who are risk averse e g worried about appearing ungrateful for the job offer tended to avoid salary negotiations or use very weak approaches to the negotiation process On the contrary those who were more risk tolerant engaged in negotiations more frequently and demonstrated superior outcomes Individuals who approached the negotiation as a distributive problem i e viewing the a higher salary as a win for him her and a loss to the employer ended up with an increased salary but lower rate of satisfaction upon completion Those who approached the negotiation as an integrative problem i e viewing the negotiation process an opportunity to expand the realm of possibilities and help both parties achieve a win outcome were able to both secure an increased salary and an outcome they were truly satisfied with 35 Gender differences Edit Salary disparities between men and women may partially be explained by differences in negotiation tactics used by men and women Although men and women are equally likely to initiate in a salary negotiation with employers men will achieve higher outcomes than women by about 2 of starting salary 36 Studies have indicated that men tend to use active negotiation tactics of directly asking for a higher salary while women tend to use more of an indirect approach by emphasizing self promotion tactics e g explaining the motivation to be a good employee 37 Other research indicates that early childhood play patterns may influence the way men and women negotiate Men and women tend to view salary differently in terms of relative importance Overall level of confidence in a negotiation may also be a determinant of why men tend to achieve higher outcomes in salary negotiations 38 Finally the awareness of this stereotype alone may directly cause women to achieve lower outcomes as one study indicates 39 Regardless of the cause the outcome yields a disparity between men and women that contributes to the overall wage gap observed in many nations The Constitution of the Republic of South Africa 239 provides for the right to fair labour practices in terms of article 23 article 9 of the Constitution makes provision for equality in the Bill of Rights which an employee may raise in the event of an equal pay dispute In terms of article 9 1 everyone is equal before the law and has the right to equal protection and benefit of the law Furthermore the state may not unfairly discriminate directly or indirectly against anyone on one or more grounds including race gender sex pregnancy marital status ethnic or social origin colour sexual orientation age disability religion conscience belief culture language and birth 40 South African employees who were in paid employment had median monthly earnings of R2 800 The median monthly earnings for men R3 033 were higher than that for women R2 340 women in paid employment earned 77 1 of what men did 27 Role of weight Edit Research done in 2011 showed that the weight double standard may be more complex that what past research has suggested This is not only relevant to women but also to men The smallest income gap differences occur at thin weights where men are penalized and women are rewarded and the opposite happens at heavier weights where the women are affected more negatively 41 See also Edit Look up salary in Wiktionary the free dictionary Executive compensation List of countries by average wage List of countries by monthly average wage List of countries in Europe by average wage List of largest sports contracts List of salaries of heads of state and government List of single digit salary earners Peak earning years Salaryman Japan StipendReferences Edit a b c d e f g h i j k Define salary Dictionary and Thesaurus Archived from the original on 3 March 2016 Retrieved 5 March 2016 Susan M Heathfield 5 March 2016 When and How to Disclose your Salary Requirements humanresources about com Archived from the original on 13 May 2013 Retrieved 4 May 2013 Early writing tablet recording the allocation of beer British Museum BBC History of the World in 100 Objects Archived from the original on 2015 10 17 Retrieved 2010 11 11 Online Etymology Dictionary Archived from the original on 4 March 2016 Retrieved 5 March 2016 Salt NaCl made the world go round Archived from the original on 5 April 2016 Retrieved 5 March 2016 The SALT ROADS of Turkey Archived from the original on 19 July 2011 Retrieved 5 March 2016 Gainsford Peter 2017 01 11 Kiwi Hellenist Salt and salary were Roman soldiers paid in salt Kiwi Hellenist Archived from the original on 2018 06 13 Retrieved 2018 06 13 wiktionary soldier soldier Online Etymology Dictionary Archived from the original on 2015 04 18 Retrieved 2015 04 10 wiktionary solidus Latin Statistical Abstract of the United States 2012 PDF U S Census Bureau Archived PDF from the original on 19 October 2012 Retrieved 13 June 2013 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market policies International Institute for Labor Studies International Labor Organization Geneva What salary can you expect in South Africa Archived from the original on 5 March 2016 Retrieved 5 March 2016 a b Archived copy PDF Archived PDF from the original on 2015 01 18 Retrieved 2013 05 04 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link Veel gestelde vragen Archived from the original on 3 March 2016 Retrieved 5 March 2016 Secundaire arbeidsvoorwaarden steeds belangrijker in salarisonderhandelingen Archived from the original on 3 March 2016 Retrieved 5 March 2016 Hoe hoog is het minimumloon Archived from the original on 31 March 2014 Retrieved 5 March 2016 FACT SHEET PROPOSED RULEMAKING TO UPDATE THE REGULATIONS DEFINING AND DELIMITING THE EXEMPTIONS FOR WHITE COLLAR EMPLOYEES DOJ Archived from the original on 2017 05 16 Retrieved 2015 11 13 a b c d e Fact Sheet Final Rule to Update the Regulations Defining and Delimiting the Exemption for Executive Administrative and Professional Employees Wage and Hour Division Archived from the original on 2018 06 14 Retrieved 2016 05 22 Payslipview 10 November 2021 Archived from the original on 25 November 2021 Retrieved 25 November 2021 Zimbabwe Revenue Authority ZIMRA Archived from the original on 4 March 2016 Retrieved 5 March 2016 a b Marks Michelle Harold Crystal October 25 2011 Who asks and who receives in salary negotiation Journal of Organizational Behavior 32 3 371 394 doi 10 1002 job 671 Archived from the original on October 25 2021 Retrieved October 25 2021 via Wiley Online Library APA PsycNet psycnet apa org APA PsycNet psycnet apa org Archived from the original on 2015 05 23 Retrieved 2012 10 01 Nickless Rachel 28 November 2012 Lifelong Confidence Rewarded in Bigger Pay Packets Australian Financial Review Archived from the original on 3 April 2016 Stereotype threat in salary negotiations is mediated by reservation salary PDF Archived PDF from the original on 2013 06 08 Retrieved 2012 10 01 Mywage co za all about Gender Pay Gap in South Africa Archived from the original on 4 March 2016 Retrieved 5 March 2016 Judge Timothy A Department of Management Warrington College of Business University of Florida FL US Cable Daniel M Department of Organisational Behaviour London Business School London EnglandExternal link Edit Media related to Wages at Wikimedia Commons Retrieved from https en wikipedia org w index php title Salary amp oldid 1133901403, wikipedia, wiki, book, books, library,

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