Chapter 7 Payment systems and

1. Remuneration package:

1.1. -Basic wages -Benefits -Incentives

2. The goal of wage system:

2.1. -Attract employees to work in the organization -Retain efficient employees -Motivate employee to perform effectively -Establish a simple system that is easy to administer

3. Two major systems of payment:

3.1. 1. Time-related systems -Paid for a set period of work on an hourly, weekly or monthly basis. 2. Piece-related systems / piece-work systems / payment by results -Paid according to number of units produced in a given time.

4. Factors affecting Levels of Pay:

4.1. 1. Legislation and government policy 2. Unions / kesatuan sekerja 3. Selection policy 4. Employment Conditions 5. Company profitability

5. Factors affecting Individual Levels of Pay:

5.1. 1. Seniority 2. Increase in the cost of living 3. Performance 4. Degree of skill

6. The laws relevant to the payment of wages are:

6.1. The Employment Act 1955 The Sabah Labour Ordinance The Sarawak Labour Ordinance The Wages Councils Act 1947