A STUDY ON PAYROLL MANAGEMENT SYSTEM

Abstract

The pay structure of a company depends on several factors such as labor market Conditions Company’s paying capacity and legal provisions. In India, different acts include different items under wages though all the Acts include basic wage and dearness allowance under the term wages. Under the workmen’s Pay Roll act, 1923 wages for leave period holiday pay, overtime pay, bonus, and good conduct bonus form part of wages. Under the payments of wages act, 1936, section 2(vi) any awards of settlement and production bonus, if paid constitute wages. Under the payment of wages act 1948, retrenchment Pay Roll payment in lieu of notices and gratuity payable on discharge constitute wages. The term Allowances includes amounts paid in addition to wages over a period of time including holiday pay, overtime pay, bonus social security benefit etc. the wage structure benefits etc. the wages structure in India may be examined broadly under the following,The basic wage in India corresponds with what has been recommended by the Fair wages committee (1948) and the 15th Indian Labor conference (1957). The various awards by wage tribunals , wage boards, pay commission reports an job evaluation also serve as guiding principles in determining basic wage. Pay Roll is what employees receive in exchange for their contribution to the organization. Generally employees offer their services for their types of rewards. Pay refers to the base wages and salaries employee normally receive. Pay Roll forms such as bonuses, commissions, and profit sharing plans are incentives designed to encourage employees to produce results beyond normal expectation. Benefits such as insurance medical, recreational, retirement, etc represents a more indirect type of Pay Roll So, the term Pay Roll is a comprehensive one including pay, incentives and benefits offered by employers for hiring the services of employees. In addition to these, managers have to observe legal formalities that offer physical as well as financial security to employees. All these issues play an important role in any HR department’s efforts to obtain maintain and retain an effective workforce. Pay Roll offered by an organization can come both directly through base pay a variable pay and indirectly through benefits