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Should pay be determined by an individual’s marital or family circumstances?

October 16, 2019


Salary range is the range of pay established by employers to pay to employees performing a particular job or function. Salary range generally has a minimum pay rate, a maximum pay rate, and a series of mid-range opportunities for pay increases. The salary range is determined by market pay rates, established through market pay studies, for people doing similar work in similar industries in the same region of the country. Pay rates and salary ranges are also set up by individual employers and recognize the level of education, knowledge, skill, and experience needed to perform each job.The salary range should reflect employer needs such as the overlap in salary ranges that will allow career development and pay increases without promotion at each level. It also considers the percentage of increase the organization will offer an employee for a promotion.

The 7 factors employer look at to determine salaries

  1. Cost of Living: - Another important factor affecting the wage is the cost of living adjustments of wages. This approach tends to vary money wage depending upon the variations in the cost of living index following rise or fall in the general price level and consumer price index.
  2. Government Regulations: - The laws passed and the labour policies formed by the Government have an important influence on wages and salaries paid by the employers. For example Employment Act of Maldives and minivan wages will influence the employees salary.
  3. Prevailing Market Rate: - Many companies participate in salary market surveys to create a trustworthy resource for salary research. More and more salary research is occurring online using salary calculators.
  4. Demand and Supply of Labor:- The number of people available to perform a specific job in the employer’s region, competition for employees with the needed skills and education, and the availability of jobs. The labour market conditions or demand and supply forces to operate at the national and local levels and determine the wage rates.
  5. Bargaining Power of Trade Union: - The wage rates are also influenced by the bargaining power of trade unions. Stronger the trade union, higher will be the wage rates. The strength of a trade union is judged by its membership, financial position and type of leadership.
  6. Ability to Pay: - The ability of an industry to pay will influence wage rate to be paid, if the concern is running into losses, then it may not be able to pay higher wage rates. A profitable enterprise may pay more to attract good workers. During the period of prosperity, workers are paid higher wages because management wants to share the profits with labour.
  7. Productivity: -Productivity is the contribution of the workers in order to increase output. It also measures the contribution of other factors of production like machines, materials, and management .Wage increase is sometimes associated with increase in productivity. Workers may also be offered additional bonus, etc., if productivity increases beyond a certain level. It is common practice to issue productivity bonus in industrial units.


The deciding on salary employer just not only look to the employee an individual’s marital or family circumstances. But the salary paid must be living wages employee basic needs have to be met. The most most important factor to be taken into consideration is cost of living. So  the employee an individual’s marital or family circumstances is taken into account while deciding on employee cost of living. There are some other factors have to be taken in to consideration like PEST analysis. The employer should not discriminate any employees when deciding salary. The salary package provided to employees should be competitive to meet attract the talent people while retaining existing employees. The salary paid should motivate workforce to achieve business objectives.

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