A STUDY ON WAGE ANALYSIS

With Reference to

AMBIKA AND ISHA CHARTERED ACCOUNTANTS FIRM,

VISAKHAPATNAM

A project report submitted in a partial fulfillment of the requirements for

the award of degree in

BACHELOR OF COMMERCE
Submitted by

JERJAPU ANJALI

(Reg No: 20AH621)

Under the esteemed guidance of

Mrs. K. PRATYUSHA, M.COM, APSET

Assistant Professor

DEPARTMENT OF COMMERCE AND MANAGEMENT ST.

JOSEPH’S COLLEGE FOR WOMEN (AUTONOMOUS)
VISAKHAPATNAM (2020-2023)
 ACKNOWLEDGEMENT

I take this opportunity to express my sincere thanks to Dr. Sr. SHYJI P.D. Principal of St.
Joseph’s College for Women (A), for giving me the permission to carry out the project
work.
I would like to wholeheartedly thank Mrs. Dr. N. JYOTHI, Head of the Department,
Department of Commerce and Management for helping me in the successful completion
of my project work.
I take this opportunity to express my deepest gratitude and sincere thanks to my faculty guide
Mrs. K. PRATYUSHA, Assistant Professor, Department of Commerce and
Management, for the valuable guidance and cooperation throughout the project work.
I would like to express my deepest gratitude to my guide , Mrs.SK.JARINA Accountant In
TUMMIDI BROTHERS, for his valuable support and guidance, interest and inspiration for
my project completion.
I would also like to thank the entire faculty members of the Department of Commerce and
Management for their constant cooperation and mentoring at all stages without whom the
project would have been a distant reality.
Finally, I would like to express my gratitude and thanks to my parents and friends whose
unremarkable encouragement had helped me throughout my educational endeavor and to do
this project work.

JERJAPU ANJALU

20AH621

BCOM
 CONTENTS

Chapter 1 Page No

• Introduction 1-2
• Need 3
• Scope 4
• Objectives 5
• Limitations 6-7
• Methodology 8
Chapter 2

• Industry profile 9-16

• Company profile 17-24
Chapter 3

• Theoretical Framework 25-36

Chapter 4

• Data Analysis and Interpretation 37-

51

Chapter 5

• Summary 52
• Findings 53
• Suggestions 54
• Conclusion 55
Bibliography
 CHAPTER – 1
INTRODUCTION

INTRODUCTION

wage is payment made by an employer to an employee for work done in a specific period of
time. Some examples of wage payments include compensatory payments such as minimum
wage, Privilege wage, and yearly bonuses, and payments such as prizes and tip payouts
Wages are part of the expenses that are involved in running a business. It is an obligation to
the employee regardless of the profitability of the company. A compensation analysis is the
process businesses use to understand how they are paying their employees in relation to one
another or compared to other companies. is a tool specifically for remuneration specialists
and managers to define a fair and competitive Salary for the employees of a company. The
survey output is data on the average or medium salary for a specific position, taking into
consideration the region, industry, company size, etc. Input data is aggregated directly from
an employer or employee

In economics, the price paid to labor for its contribution to the process of production is called
wages. Labor is an important factor of production. If there is no labor to work, all other
factors, be it land or capital, will remain idle. Thus, Karl Marx termed labor as the “creator of
all value”.
labor alone cannot produce as most of the production is the result of joint efforts of different
factors of production. Therefore, the share of the produce paid to labor for its production
activity is called wage One key area to consider is competitive wage analysis. Do your
worksite managers know what they should pay their employees? When their star employees
are up for review, do they know if they are paying them the local market rate? The answer
more than likely is going to be a resounding “no.” But it doesn't have to be.

The Indian Constitution has defined a 'living wage' that is the level of income for a worker
which will ensure a basic standard of living including good health, dignity, comfort,
education and provide for any contingency. However, to keep in mind an industry's capacity
to pay the constitution has defined a 'fair wage'.
Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit by Dara Lee Luca and
Michael LucaThis study examines the impact of minimum wage increases on restaurant
closures in the San Francisco Bay Area, using data from 2008 through 2016 from the review
platform Yelp. The study demonstrates that higher minimum wages increase closure rates
among lower-rated restaurants, while higher-rated restaurants are largely insulated from
changes For purposes of this chapter, the term “wages” means all remuneration (other than
fees paid to a public official) for services performed by an for his employer, including the
cash value of all remuneration (including benefits) paid in any medium other than cash;" In
addition to requiring that the remuneration must be for "services performed by an for his
employer," the definition goes on to list 23 exclusions that must also be applied.

MEANING AND DEFINITION

“A wage may be defined as the sum of money paid under contract by an employer to worker
for services rendered.” -Benham

“Wages is the payment to labor for its assistance to production.” -A.H. Hansen

Wage Analysis is step one in establishing pay rates while ensuring internal, external and
sometimes procedural equity. Pay rates can only be set if you know what other employees are
earning in the same industry for the same work done. So wage analysis refers to carrying out
surveys of determining what others are paying. It plays a big role in pricing jobs. It‟s the duty
of every employer to conduct such surveys- informal telephone, newspapers or internet wage
analysis.
 NEED OF THE STUDY

• A wage policy must be instrumental in achievement of the following:

• Elimination of exceptionally low wages

• Establishment of fair labor standards  .

• Protection of wage earners from the effects of rising prices.

• Incentive for workers to improve their productive performance.

• The main objective of wage and salary administration is to establish and maintain an equitable wage and
salary system.

• This is so because only a properly developed compensation system

• Enables an employer to attract, obtain, retain and motivate people of required caliber and qualification in
his/her organization.

• These objectives can be seen in more orderly manner from the point of view of the organization, its
individual employees and collectively.
 SCOPE OF THE STUDY

• One of the most important aspects of a job for most workers is the wage it pays.

• Wages allow workers to make a living from their labor.

• They also provide incentives to be productive and loyal to an employer.

• In a broader sense, the wages workers earn fuel the economy .

• Wage analysis helps us to know about how the company is calculating the Wages

• Benefits means wages and salaries, the employer's share of FICA taxes,

• Medicare taxes, state and federal unemployment taxes, workers' compensation,

mileage reimbursement, health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, and contributions .
 OBJECTIVES OF THE STUDY

• Ensures a fair compensation.

• Provides compensation according to employee‟s worth.
• Avoids the chances of favoritism from creeping in when wage rates are assigned.
• Enhances employee morale and motivation.
• Compensation in ahead of inflation.
• Matching with market rates.
• Increase in compensation reflecting increase in the prosperity of the company.
• Compensation system free from management discretion
• To motivate people to perform better

METHADOLOGY

Research means “know about new things”. Sometimes, it may refer to scientific and
systematic search pertinent information on specific topic. In fact research in an art of
scientific investigation.
According to Clifford Woody research comprises of “define and redefining problem,
formulating hypothesis or suggested solution, collecting, organizing and evaluating data;
making deductions and reaching conclusion; and at last carefully testing the conclusion to
determine whether they fit the formulating hypothesis”. Redman and Moray define research
as a “systematic effort to gain new knowledge”. Research can be defined as the search of
knowledge or any systematic investigation to establish fact. The primary purpose for applied
research(as opposed to basic research) in discovering, interpreting, and the development of
methods and systems for the advancement of human knowledge on a wide variety of
scientific matters of our world and the universe. Research can use the scientific method but
need not do so. Research can also be said as a process that is followed by a person to answer
either his/her own queries or somebody else queries about a particular object, person, subject
etc.
PRIMARY DATA
Primary data is the data which is intended to be used by the researcher, the researcher collects
the data depending upon his requirements. The data for study has been collected from the
management of the company. And also from the labor wage office and also the financial wage
information
The financial department of the tummidi brothers .
SECONDARY DATA
The secondary data is collected from information which is used by others. It is not direct
information. This information is already collected and analysis by other and that information
is used by others.
The data is also collected from the following :
From the company website
Manual
Monthly working reports
Company record books

LIMITATIONS OF THE STUDY

• No Incentive for efficiency: ...

• Wastage of time: Workers may waste their time because they will not be following a
target of production. ...
• Low production: ...
• Difficulty to determine labor cost: ...  Difficult supervision work: ...
• Employer-employee trouble
• There is no proper wage data provided by the company
• There is no sufficient time to go in detail of the topics .
• There is no proper explanation of the topic by the trainer or the guide provided for us .
 CHAPTER-2 INDUSTRY
PROFILE COMPANY PROFILE
INDUSTRY PROFILE

Textile is umbrella term that includes various fiber based materials, including fibers, yarns,
filaments, threads, different fabric types, etc. At first, the word "textiles" only referred to
woven fabrics. However, weaving is not the only manufacturing method, and many other
methods were later developed to form textile structures based on their intended use. knitting
and non-woven are other popular types of fabric manufacturing. The industry grew out of art
and craft and was kept going by guilds. In the 18th and 19th centuries, during the industrial
revolution, it became increasingly mechanized. In the 20th century, science and technology
were driving forces. Most textiles were called by their generic names, their place of origin, or
were put into groups based loosely on manufacturing techniques, characteristics, and on their
designs. Nylon, olefin, acrylic are all generic names for some synthetic fibers.

ABOUT INDIAN TEXTILE INDUSTRY

The two world War and the Swadeshi movement provided great stimulus to the Indian cotton
textile industry. However, during the period 1922 to 1937 the industry was in doldrums and
during this period a number of the Bombay mills changed hands. The second World War,
during which textile import from Japan completely stopped, however, brought about an
unprecedented growth of this industry. The number of mills increased from 178 with 4.05
lakh looms in 1901 to 249 mills with 13.35 lakh looms in 1921 and further to 396 mills with
over 20 lakh looms in 1941. By 1945 there were 417 mills employing 5.10 lakh workers.

Textile constitutes the single largest industry Faced with new challenges and opportunities in
a changing global trade environment, the GOI unveiled its National Textile Policy 2000 (NTP
2000) on November 2, 2000. The NTP 2000 aims to improve the competitiveness of the
Indian textile industry in order to attain $50 billion per year in textile and apparel exports by
2010.86 The NTP 2000 opens the country‟s apparel sector to large firms and allows up to
100 percent FDI in the sector without any export obligation

ry in India. The segment of the industry during the year 2000-01 has been positive. The
production of cotton declined from 156 lakh bales in 1999-2000 to 1.40 lakh bales during
2000-01. Production of man-made fiber increased from 835 million kgs in 1999-2000 to 904
million kgs during the year 2000-01 registering a growth of 8.26%. The production of spun
yarn increased to 3160 million kgs during 2000-01 from 3046 million kgs during 1999-2000
registering a growth of 3.7%. The production of man-made filament yarn registered a growth
of 2.91% during the year 1999-2000
increasing from 894 million kgs to 920 million kgs. The production of fabric registered a
growth of 2.7% during the year 1999-2000 increasing from 39,208 million sq mtrs to 40,256
million sq meters. The production of mill sector declined by 2.6% while production of
handloom, powerloom and hosiery sector increased by 2%, 2.7% and 5.1% respectively. The
exports of textiles and garments increased from Rs. 455048 million to Rs. 552424 million,
registering a growth of 21%. Growth in the textile industry in the year 2003-2004 was Rs.
1609 billion. And during 2004-05 production of fabrics touched a peak of 45,378 million
square meters. In the year 2005-06 up to November, production of fabrics registered a further
growth of 9 percent over the corresponding period of the previous year

The Indian textile industry has a significant presence in the economy as well as in the
international textile economy. Its contribution to the Indian economy is manifested in terms
of its contribution to the industrial production, employment generation and foreign exchange
earnings. It contributes 20 percent of industrial production, 9 percent of excise collections, 18
percent of employment in the industrial sector, nearly 20 percent to the country‟s total export
earning and 4 percent to the In human history, past and present can never ignore the
importance of textile in a civilization decisively affecting its destinies, effectively changing
its social scenario. A brief but thoroughly researched feature on Indian textile culture.

India has been well known for her textile goods since very ancient times. The traditional
textile industry of India was virtually decayed during the colonial regime. However, the
modern textile industry took birth in India in the early nineteenth century when the first
textile mill in the country was established at fort gloster near Calcutta in 1818. The cotton
textile industry, however, made its real beginning in Bombay, in 1850s. The first cotton
textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in
overseas and internal trade. Indeed, the vast majority of the early mills were the handiwork of
Parsi merchants engaged in yarn and cloth trade athomeandChineseandAfricanmarkets..

The first cotton mill in Ahmedabad, which was eventually to emerge as a rival center to
Bombay, was established in 1861. The spread of the textile industry to Ahmedabad was
largely due to the Gujaratitradingclass..

The cotton textile industry made rapid progress in the second half of the nineteenth century
and by the end of the century there were 178 cotton textile mills; but during the year 1900 the
cotton textile industry was in bad state due to the great famine and a number of mills of
Bombay and Ahmedabad were to be closed down for long periods.
SMALL-SCALE OPERATIONS AND DISCRIMINATED AGAINST LARGER
SCALE FIRMS

Composite Mills:

Relatively large-scale mills that integrate spinning, weaving and, sometimes, fabric finishing
are common in other major textile-producing countries. In India, however, these types of
mills now account for about only 3 percent of output in the textile sector. About 276
composite mills are now operating in India, most owned by the public sector and many
deemed financially “sick.

Spinning:

Spinning is the process of converting cotton or manmade fiber into yarn to be used for
weaving and knitting. Largely due to deregulation beginning in the mid-1980s, spinning is
the most consolidated and technically efficient sector in India‟s textile industry. Average
plant size remains small, however, and technology outdated, relative to other major
producers. In 2002/03, India‟s spinning sector consisted of about 1,146 small-scale
independent firms and 1,599 larger scale independent units.

Weaving and Knitting:

Weaving and knitting converts cotton, manmade, or blended yarns into woven or knitted
fabrics. India‟s weaving and knitting sector remains highly fragmented, small-scale, and
labor-intensive. This sector consists of about 3.9 million handlooms, 380,000 “powerloom”
enterprises that operate about 1.7 million looms, and just 137,000 looms in the various
composite mills. “Powerloom” are small firms, with an average loom capacity of four to five
owned by independent entrepreneurs or weavers. Modern shuttleless looms account for less
than 1 percent of loom capacity

Fabric Finishing:
Fabric finishing (also referred to as processing), which includes dyeing, printing, and other
cloth preparation prior to the manufacture of clothing, is also dominated by a large number of
independent, small scale enterprises. Overall, about 2,300 processors are operating in India,
including about 2,100 independent units and 200 units that are integrated with spinning,
weaving, or knitting units

Clothing:

Apparel is produced by about 77,000 small-scale units classified as domestic manufacturers,

manufacturer exporters, and fabricators (subcontractors).

Scheme for Integrated Textile Parks (SITP)

To provide the industry with world-class infrastructure facilities for setting up their
textile units, Government has launched the Scheme for Integrated Textile Parks
(SITP) by merging the Scheme for Apparel Parks for Exports (APE) and Textile
Centre Infrastructure Development Scheme (TCIDS). This scheme is based on
Public-Private Partnership (PPP) and envisages engaging of a professional agency
for project execution. The Ministry of Textiles (MOT) would implement the Scheme
through Special Purpose Vehicles (SPVs).

SWOT ANALYSIS OF INDIAN TEXTILE INDUSTRY

STRENGTHS

• Abundant Raw materials

• Low cost skilled labor
• Presence across the value chain
• Growing domestic market

WEAKNESS

• Fragmented industry
• Effect of historical government policies
• Lower productivity and cost competitiveness
• Technology obsolescence

OPPURTUNITY

• Post 2005 challenges

• Can be researched and developed and product development

THREATS

• Competition in domestic market  Ecological and social awareness  Regional

alliances.

VISION INDIA 2010 FOR TEXTILES :

• Textile economy to grow to $ 85 bn. by 2010.
• Creation of 12 million new jobs in Textile Sector.
• To increase India‟s share in world trade to 6% by 2010
• Achieve export value of $ 40 Billion by 2010
• Modernization and consolidation for creating a globally competitive
industry.

PROBLEMS FACED BY TEXTILE INDUSTRIES

 • Sickness.
• Obsolescence.
• Government regulations.
• Low yield and fluctuation of cotton output.
• Competitions from man made fibers.
• Labor problems.
• Accumulation of stock.
• Miscellaneous.

To understand India‟s position among other textile producing the industry contributes 9% of
GDP and 35% of foreign exchange earning, India‟s share in global exports is only 3%
compared to Chinas 13.75% percent. In addition to China, other developing countries are
emerging as serious competitive threats to India. Looking at export shares, Korea (6%) and
Taiwan (5.5%) are ahead of India, while Turkey (2.9%) has already caught up and others like
Thailand (2.3%) and Indonesia (2%) are not much further behind. The reason for this
development is the fact that India lags behind these countries in investment levels,
technology, quality and logistics. If India were competitive in some key segments it could
serve as a basis for building a modern industry, but there is no evidence of such signs, except
to some extent in the spinning industry.
 COMPANY PROFILE

OVERVIEW :
Humble beginnings saw the birth of Tummidi Brothers in the textile town of Rajahmundry,
South India, in the early 1970s. Initiated as khadi showrooms. the chain of stores rapidly
grew to different regions of Andhra Pradesh Catering to diverse segments of the society, the
stores earned an endearing name for itself among all its customers. Soon, the stores were
metamorphosised into grand textile showrooms in the major cities of Vijayawada,
Rajahmundry and Visakapatnam

Spread over a sprawling area of over 1 lakh sq ft. Tummidi Brothers find pride of place
amongst the largest textile chain of showrooms in South India. With a wide-ranging
collection of apparels from trendy readymade garments to attractive dress materials to
exquisite sarees-the stores have become a desired destination for the discerning shopper. The
Group also has its own textile export arm, which is a prominent exporter of hosiery to the
demanding markets of Europe, USA, among other countries and also involved in wholesale
orders for domestic and global clients Besides its forte in textiles, Tummidi Brothers have its
own exclusivejewellery division. Having the unique distinction of being the BIS
916Hallmarked Jewelry Showroom at Visakhapatnam, it has the most finely crafted designs
in Diamonds, Gold and Silver.

TUMMIDI BROTHERS LOGO:

The name "Tummidi Brothers" Evokes all that is positive in business and in life. We create a
consistent, impact-oriented Group image Our corporate logo thus serves as an umbrella for
our Group. It signals the common values and beliefs that guide our behavior in all our
entrepreneurial activities We have the suppliers all over the country. We have monopoly
designs and customized varieties which fulfills the customer needs
STRENGTHS:

• As a part of our Total Quality Management philosophy, we are continuously searching

for options in lowering our cost to give the best price with best quality to our valuable
customers .

• Garments that stand out for the innovative materials, colors and prints.

• Boutiques with an iconic and unforgettable visual identity.

• In-depth knowledge about the specific aspects of the fashion industry..

• Brands with great international potential.

OWNERSHIP:

Tummidi Ram Kumar garu was born on 22nd November 1954 as 1" son of 5 sons and 3
sisters, studied up to B.A, continued supporting the family working along with the father in
the textile business looking after the other brothers and sisters. Married to Bala Nagamani
garu, and had 2 Sons and 1 Daughter.While leading the in textile industry, on the other side
participated in many activities like promoting religious fraternity, book/clothes. encouraging
the talented in all fields, eliminating illiteracy, sponsoring for prayer centers etc. The
struggles and hardness of Sri Ram Kumar Garu led to the enlargement of Tummidi Brothers
Group by increasing the stores at different place by providing employment to thousands of
people from different regions in India.

BUSSINESS PHILOSOPHY:

• Value the needs of the customers and update the store as per the requirements of the
customers

• Focusing on the Quality and pricing measurements (Using feedback)

• Commitment to deliver the best, superior and finest quality of products to the
customers and deliver superior value to the customers

• Our Tummidi Group works as a team and let all the staff to participate in the success
of Tummidi Group.
VISION:

Tummidi Brothers by providing competitive value must emerge as the preferred choice for
repeat purchases by an increasing number of satisfied customers by continuous increase in
the quality of our products. Our main target is to deliver the best, finest and superlative
quality of products to our customers and deliver superior value and service to our customer
by providing the best quality at the best prices.

TARGET:

To be the leading seller in the apparel industry and establish branches at different places
across India and also increase the livelihood to many more people by providing employment
to them

SUPPLIERS:

ADITYA BIRLA GROUP: we have tie up with this company from long 15 years which
supplies pure linen cotton in suiting and shirting's

RAYMONDS: This company provides pure trey wool and tyrosine material in uniform
clothing.

JHAMPSTEAD:This is London based company, which supplies pure cotton feel

uniform material.

REID AND TAYLOR: This is company provides us trey wool material in uniforms.

SAREES:
Tummidi Brothers signifies the fusion of the South and the North We have perfect blend of
the traditional and the modem the sarees. We have wide range of varieties SamudrikaVastra
Kala Pattu. Arani, Banaras, and Fancy Sarees, Dress Material and Ready-mades.We expect
you to come the world of New Varieties, which pamper yourself to a whole new experience
of luxury and innovation. Gold: our view enchanting collections, each a finely crafted master
piece and breathtaking beauty. We are having collection of gold ornaments like
AntiqueJewelry, Bridal Jewelry, Fashion Jewelry, Stone Jewelry, Junagad Jewelry. Plain
Jewelry. We are very happy to provide best service to our customers by giving the best jewels
as the customers required

MAJOR CUSTOMERS :

CAIRN INDIA LTD.



DR REDDY’S LABORATORIES LTD .


 OIL AMD NATURAL GAS CORPORATION ltd

ANDHRA PRADESH PAPERMILLS LTD.

 CHAPTER-3 THEORETICAL
FRAME WORK
INTODUCTION TO TOPIC

In economics, the price paid to labor for its contribution to the process of production is called
wages Labor is an important factor of production. If there is no labor to work, all other
factors, be it land or capital, will remain idle. However, labor alone cannot produce as most
of the production is the result of joint efforts of different factors of production. Therefore, the
share of the produce paid to labor for its production activity is called wage According to most
economics textbooks, our wages are determined just like any other price: by supply and
demand. People supply their labor, and companies demand it, creating a market for labor.
Some examples of wage payments include compensatory payments such as minimum wage,
prevailing wage, and yearly bonuses, and remunerative payments such as prizes and tip
payouts.

MEANING AND DEFINITION

Definition: A wage is compensation paid to employees for work for a company during a
period of time. Wages are always paid based on a certain amount of time. This is usually an
hourly basis. This is where the term hourly worker comes from. Other forms of compensation
include salary and commissions

Lower level employees are paid based on the amount of time worked. These employees
usually have a time sheet or time card to keep track of the hours worked per week. Most
modern employers have computerized systems to keep track of hourly employee hours.
Employees must log into the system and log out to record their hours worked. Depending on
the state, these employees are then paid once a week or once every other week. Hourly
employees must receive overtime benefits if they work more than 40 hours each week.
WAGE EXPENSE:
A wage expense is the cost incurred by companies to pay hourly employees. This line item
may also include Payroll taxes and benefits paid to employees. A wage expense may be
recorded as a line item in the expense portion of the income statement. This is a type of
variable cost.
.
A wage expense is the cost incurred by companies to pay hourly employees.
The wage expense line item may also include payroll taxes and benefits paid to the employee.
Wage expenses are variable costs and are recorded on the income statement.
Under the accrual method of accounting, wage expenses are recorded when the work was
performed as opposed to when the worker is paid. Under cash accounting, wage expenses are
reported only when the worker is paid.
Wage expenses that are not yet paid are recorded as wages payable on the balance sheet,
which is a liability account.
Salary expenses differ from wage expenses as they are not hourly but rather quoted annually.
Wage expenses can incur overtime whereas salaried jobs do not include overtime pay.

UNDERSTANDING WAGE EXPENSE

Wage expenses are sometimes reported by department and they are most likely to be reported
separately for the production department. This department is often the one with the most
hourly employees. On the other hand, wage expenses for production workers may be
incorporated into the Cost of goods sold (COGS) item on the income statement.. Wage
expenses vary from one period to the next, depending on the number of business days in the
period and the amount of overtime to be paid. Business days vary from month to month and
may be affected by the number of holidays during the period. Also, wage expenses during the
Christmas/holiday season may be higher as companies hire more workers to meet the
increased demand for shopping. After the holiday season, companies then may cut back on
the number of workers when business is not as busy and the need for additional workers has
gone.

Minimum Wage

A wage expense has to at least be equal to the Minimum wage dictated by the federal
government or the state government. The current minimum wage in the U.S. is $7.25 an hour
and has not been raised since 2009. Many states have implemented minimum wages that are
higher than the federal wage and employers in those states have to pay the higher state
minimum wage Many companies pay a higher minimum wage than the federal or state
minimum wage. Examples include Walmart, Kroger, Target, Costco, and Amazon.

Wage Expense vs. Salary Expense

Wage and salary are often used interchangeably but they refer to different types of payments
for employment. Wages most often refer to hourly pay. The worker is paid per hour for a set
amount of hours per week. If they go over the set amount of hours, then they are usually paid
overtime. Overtime pay can sometimes be higher than the regular hourly pay; sometimes 1.5x
the hourly pay. Salary refers to a set amount of payment that does not change throughout the
year and is usually quoted as an annual sum rather than hourly. With salaried jobs, there is no
set amount of hours an individual works, so if the person works 40 hours a week or 60 hours
a week, there is no difference in pay.

TYPES OF WAGES
In real practice, wages are of many types as follows:

Piece Wages:
Piece wages are the wages paid according to the work done by the worker. To calculate the
piece wages, the number of units produced by the worker are taken into consideration.

Time Wages:
If the labourer is paid for his services according to time, it is called as time wages. For
example, if the labor is paid Rs. 35 per day, it will be termed as time wage Cash Wages:
:Cash wages refer to the wages paid to the labour in terms of money. The salary paid to a
worker is an instance of cash wages.
Wages in Kind:
When the labourer is paid in terms of goods rather than cash, is called the wage in kind.
These types of wages are popular in rural areas.
Contract Wages:
Under this type, the wages are fixed in the beginning for complete work. For instance, if a
contractor is told that he will be paid Rs. 25,000 for the construction of building, it will be
termed as contract wages.

CONCEPTS OF WAGES:
The following are the two main concepts of wages:

Nominal Wage:
Real Wage:

Money Wages or Nominal Wages:

The total amount of money received by the labourer in the process of production is called the
money wages or nominal wages.

Real Wages:
Real wages mean translation of money wages into real terms or in terms of commodities and
services that money can buy. They refer to the advantages of worker‟s occupation, i.e. the
amount of the necessaries, comforts and luxuries of life which the worker can command in
return for his services.

An example will make the things clear. Suppose „A‟ receives Rs. 500 p.m. as money wages
during the year. Suppose also that midway through the year the prices of commodities and
services, that the worker buys, go up, on the average, by 50%.It means that though the money
wages remain the same, the real wages (consumption basket in terms of commodities and
services) are reduced by 50%. Real wages also include extra supplementary benefits along
with the money wages.

Distinction between Real and Money Wages:

Adam Smith has distinguished the money wages and real wages on the following basis:

Relation with Price:

Keeping all other things constant, there exists inverse relation between real wages and price
i.e. with the increase in price level real wages tend to decline and vice-versa.

Money and Real Wages:

Ceterus paribus, an increase in money wages will lead to an increase in real wages. It is due
to the reason that with the increase in money wages, a labourer can purchase more goods and
services than before.

Basic Difference:
According to Adam Smith, money wages are paid in terms of the quantity of money whereas
real w ages are paid in terms of necessaries of life. Therefore money w ages are expressed in
terms of money and that of real wages in terms of goods and services.

GROSS WAGES:

Gross wages are the employee‟s earnings before taxes and deductions withholdings. It
depends on the employment type and wages set by the employer. For salaried employees, it is
the annual salary. For hourly employees, it is their hourly wages multiplied by the number of
hours worked.

Calculating Gross wages:

Gross wages for salaried employees

Gross wages for salaried employees are their annual pay. To know their monthly gross wages,
simply divide the gross wages by 12, since there are 12 months. For example, if an employee
earns $120,000 a year, on dividing it by 12, their monthly gross wages become $10,000.

Gross wages for hourly employees

Gross wages for hourly employees are the hourly wage multiplied by the number of hours
worked by the employee. For instance, if an employee earns $20 per hour, and works 40
hours per week. Their gross wages for one workweek would be ($20 X 40) $800. The
overtime worked by the employee will also be included in the gross pay. So, if the employee
works for 6 hours overtime, it would include (6 X ($20 X 1.5)) $180 extra, making a total of
$980.
Difference between Gross wages and Net wages

Gross wages:
Gross wages are the salary that contains all the benefits and allowances. It is the amount
before tax deduction. This includes HRA, conveyance, medical allowance.

Net wages:
It is the amount that an employee takes home after all the deductions like Income tax,
pension, professional Tax and so on.

WAGE CALCULATION

After-hours and overtime wages for shop workers Work outside the daytime work period is
paid by hourly wages amounting to 0,8235% of monthly wages for daytime work up to
167,94 hours work each month (38,75 hours on average per week). Work in excess of 167,94
hours is paid by hourly wages amounting to 1,0385% of monthly wages for daytime work. If
companies calculate using Active working hours, it‟s based on 155.3 hours a month, or
35.83 hours a week on average. Payment for work carried out between the hours of 00:00 and
07:00 shall be at an hourly rate that is 0.8824% of monthly wages for daytime work up to
167.94 hours per month, or 155.3 hours if based on active working hours.
AFTER HOURS AND OVERTIME FOR OFFICE HOURS
Work outside the daytime work period is paid with hourly wages amounting to 0,875% of
monthly wages for daytime work up to 159,27 hours work each month (36,75 hours on
average per week). Work in excess of 159,27 hours is paid with hourly wages amounting to
1,0385% of monthly wages for daytime work. If companies calculate using active working
hours, it‟s based on 153.86 hours a month, or 35.5 hours a week. Payment for work carried
out between the hours of 00:00 and 07:00 shall be at an hourly rate that is 0.9375% of
monthly wages for daytime work up to 159.27 hours per month, or 153.86 hours if based on
active working hours.

MAJOR PUBLIC HOLIDAY WAGES

All work done during major public holidays is paid with hourly wages amounting to 1,375%
of monthly wages for daytime work. This does not apply to scheduled work where winter
break holidays are granted according to specific agreements due to work on such days, in
which case rules of payment remain unchanged.

DIVISORS OF HOURLY WAGES

COFFEE BREAKS TAKEN

Each employee‟s hourly daytime rate of pay is found by dividing the regular wage of the
appropriate step on the pay scale by 167,94 (see Section 1.1.) for shop assistants and by
159,27 for office workers.

NO COFFEE BREAKS TAKEN

Each employee‟s hourly daytime rate of pay is found by dividing the regular wage of the
appropriate step on the pay scale by 155,3 (see Section 1.1.) for shop workers and by 153,86
for office workers.

DIVISORS FOR CALCULATING DAILY PAY RATES AND

HOLIDAY ALLOWANCES

Each employee‟s daily daytime rate of pay is found by dividing his regular monthly wage by
21.67 (Saturdays not included).

EXAMPLES
Daytime wages
To find out wages for one day, monthly wages are divided by 21.67 which is the average of
weekdays in a month.
Fixed monthly wages / 21.67 = 1 day.
ISK 317.530 / 21.67 = ISK 14.652,97.34 for each day.

Week’s wages To find out wages for one week, monthly wages are divided by 4.333
which is the average work week in a month.
Fixed monthly wages / 4,333 = 1 week.
ISK 317.530 / 4.333 = ISK 73.281.79 for a week‟s wages.

After-hours work
Shop work: Fixed monthly wages x 0,8235% = after-hours hourly wages. ISK 317.530 x
0,8235%= ISK 2.614,86
Office: Fixed monthly wages x 0,875 = after-hours hourly wages.
ISK 317.530 x 0,875% = ISK 2.778,39

Overtime
Shop work/Office: Fixed monthly wages x 1.0385% = overtime hourly wages. ISK 317.530 x
1.0385% = ISK 3.297,55

Major public holiday wages Shop/office: Fixed hourly wages x 1.375% = major public
holiday hourly wages ISK 317.530 x 1.375% = 4.366,04.

FORMULAS FOR WAGE CALCULATION :

 CHAPTER-4 DATA
ANALYSIS AND
INTERPRETATION

D R C W C G T P E D T N
e a L o o r o f s e o e
s t A r s o t i d t t
i e k t s a u a
g P i s l c l w
n o o n o t a
a f i g f w i g
t n a o e
i p t d e g n s
o a s a x e
n y y t s
s r
a

d
a
y
s

M * * * * * * * * * * *
a * * * * * * * * * * *
n * * * * * * * * * * *
a
g
e

REGISTERS OF WAGES
FORM/FORM XXlll sec(30)(1)/sec29(2)
r
A * * * * * * * * * * *
s * * * * * * * * * * *
s * * * * * * * * * * *
t
M
a
n
a
g
e
r

C * * * * * * * * * * *
a * * * * * * * * * * *
s * * * * * * * * * * *
h
i
e
r
A * * * * * * * * * * *
c * * * * * * * * * * *
c * * * * * * * * * * *
o
u
n
t
a
n
t
S * * * * * * * * * * *
a * * * * * * * * * * *
l * * * * * * * * * * *
e
s
m
a
n
S * * * * * * * * * * *
a * * * * * * * * * * *
l * * * * * * * * * * *
e
s
m
a
n
S * * * * * * * * * * *
u * * * * * * * * * * *
p * * * * * * * * * * *
e
r
v
i
s
o
r

Interpretation:
In the year 2018 To 2019 the wage is distributed in the tummidi brothers. Were
calculated according to the cla points given by the labor office notices And
wages received Constant compared to previous year and also the wages salary
was given in a fairway not compared to target basics and also the wages are
differentiating according to the designations and the work experience done by
the employees over there and also the seniority and the PF value contribution is
little increase compared to previous year and ESI is same.
REGISTERER OF WAGES SHEET :
D R C W C G T P E D T N
E a L o o r o F S e o e
S t A r s o t
I d t t
I e k t s a
s a w
G p
I O
l D
N o o l a
n f w u
A f i a c g
g
T n
E g t e
I p t D d
x e
O a s a i
t s
N y y
r o
s
a n
D
a
y
s

M 5 4 3 3 1 1 8 1 _ 9 1
A 5 7 3 4 6 6 5 2 7 5
N 5 0 7 5 5 2 4 6 5
A 7 4 6 0 0 2
G 0 0 4
E
R
A 4 4 3 4 1 1 7 1 1 1 1
S 7 7 5 8 7 7 8 1 0 8 5
S 2 0 1 5 5 3 4 0 9 6
T 2 4 1 0 0 0 7 0
0 0 3
M
A
N
A
G
E
R
C 4 4 3 3 1 1 7 1 5 5 5
A 5 7 2 8 1 1 2 0 0 8 9
S 2 0 0 7 7 4 6 0 3 0
H 3 3
O
I 0 4 3 3 0 0 3
R
E
R
A 4 4 3 2 1 1 7 1 2 1 9
C 5 7 0 4 0 0 9 2 0 1 7
C 0 0 0 8 8 1 0 0 1 7
O 0 4 5 9 9 1 9
U 0 0
N
T
A
N
T
S 4 4 2 1 1 1 6 9 _ 7 1
A 8 7 8 7 4 4 4 0 3 3
L 2 0 6 0 0 3 3 3
E 8 4 0 7 7 4
S 7 7 4
M
A
N
S 4 4 3 2 1 1 6 9 4 1 1
A 0 7 0 4 2 2 8 8 5 2 1
L 2 0 2 4 4 3 0 3 2
E 0 4 0 7 7 1 3
S 0 0 9
M
A
N
S 4 4 3 4 1 1 7 1 2 1 1
U 5 7 4 2 6 6 1 1 0 0 5
P 5 0 6 3 3 4 0 0 2 3
E 6 4 0 6 6 4 4
R 4 4 0
V
I
S
INTERPRETATION:

The registrar of wages is a book of form FORM/FORM XXlll sec(30)(1)/sec29(2).

Which is also known as labour wages . Which consists of CLA points . Cla
points are used to calculate a persons wage . That wage calculation includes the
following points those were , persons present days , working of extra days ,
gross wages , calculations of PF AND ESI . And also the deductions and also
the net profit . these all columns help us to Calculate wages in a clean
systematic Manner and in a Proper Way. Its mainly maintained according to the
government
 WAGES ACCORDING TO THE YEAR (2015-2016):
S D M P Y S A P E T N
. e o e e a d F S o e
N s n r
a l v I t t
o i t
d
r a a a
g h P
n a l r n l
a
a W y y y c
D y
t a e
i g
A e
o e d R d
n v e u
a c c
n e t
c i i
e v o
e n
d s
1 M 1 6 2 _ _ 8 6 9 2
. a 8 1 4 4 0 0 3
n 5 6 4 0 0 0 5
a 0
g 0 1 0 0 1
e 7 7
r 6 6
2 A 1 5 2 1 _ 9 6 2 2
. s 5 1 2 0 6 0 0 0
s 5 6 3 0 0 0 2 2
t 0 1 0 0 0 9
0 7 0 0 7
M
a 6 6
n
a
g
e
r
3 C 1 3 1 5 _ 8 5 1 1
. a 1 8 5 0 2 4 3 3
s 5 3 1 0 8 0 8 7
h 0 8 0 0 2 9
i 0 0 0 8
e 0 0
r
4 A 1 3 1 _ _ 2 3 2 1
. c 0 3 2 4 0 7 2
c 0 3 8 0 0 0 5
o 0 0 0 0 3
u 0 0 0
n 4 4
t
a
n
t
5 S 1 4 1 _ _ 8 3 9 1
. a 2 0 5 7 6 1 4
l 0 0 8 6 0 2 9
e 0 4 0 0 2
s 0 0 8
m 0 0
a
n
6 S 1 6 1 _ _ 3 2 3 1
. a 8 0 5 6 4 8 5
l 0 0 4 0 0 4 0
e 0 8 0 0 9
s 0 0 6
m 0 0
a
n
7 S 1 4 1 5 _ _ _ 5 1
. u 4 0 8 0 0 8
p 0 0 7 0 0 2
e 0 5 0 0 5
r 0 9 9
v 6 6
i
s
o
r
 INTERPRETATION:
Per Yearly Salary Advance PF
day
Advance Received
616 222000 2000 8400

In the year 2015 to 2016 the wage analysis in tummidi

brothers it‟s done accordingly with the help of the records
which are provided by the wage register which contains the
PF values and also the ESI values calculation which is taken
on the basis of the working days of the Labourer and also the
work is done according to the target base in the institution and
also in the year 2015 to 2016 the wages received add higher
compared to previous years because the employees got the
PF&ESI in mote percentage .

WAGES ACCORDING TO THE YEAR (2016-2017):

INTERPRETATION:

In the year 2016 to 2017we can observe that the wage rate is little decreased due
to the CL A points which are changed in the labor wages system and also the PF
and ESI received is Contributed in more amount keeping in the view of laborers
and also the wages received the association decided to pay more percentage of
PF and ESI to the laborers and also in 2016 to 2017the rate of advances taken by
the laborers is also more compared to last year Compared to previous 2015 to
2016PF and DSA calculations present day calculations was increased by the
contribution of the organization
 WAGES ACCORDING TO THE YEAR (2017-2018):

S.No Designation Month Wage Per day Yearly

1. Manager 18500 616 222000

2. Asst 15500 516 186000

Manager
3. Cashier 11500 383 138000

4. Accountant 10000 333 120000

S.No Designation Month Wage Per day Yearly
5. Salesman 12000 400 144000

6. Salesman 18000 600 216000

7. Supervisor 14000 400 168000

INTERPRETATION:

In the year 2017 to 2018 The wages which are given to the laborers or the employees in the

organization are low because there is no proper sale of the material the wages which are
issued in Keep in mind depending on the target based or the sales done by the laborers device
and also the PF calculation is done through The percentage contributed by organization
because due to the less sales and also theESI given to employees is reduce and also the
advances taken are not that much higher and not that much less because off wage payments
1. Manager 18500 616 222000

2. Asst 15500 516 186000

Manager
3. Cashier 11500 383 138000

4.
S.No Accountant
Designation 10000 Wage
Month 333day
Per 120000
Yearly

5. Salesman 12000 400 144000

1. Manager 18500 616 222000

6. Salesman 18000 600 216000

2. Asst 15500 516 186000

7. Manager
Supervisor 14000 400 168000
3. Cashier 11500 383 138000

4. Accountant 10000 333 120000

5. Salesman 12000 400 144000

6. Salesman 18000 600 216000

7. Supervisor 14000 400 168000

WAGES ACCORDING TO THE YEAR (2018-2019):

WAGES ACCORDING TO THE YEAR (2019-2020):

Interpretation:

In the year 2019 to 20 20 the wage which is given to the workers is little low compared to
previous years and also the PF were given in What amount compared to previous years
because of COVID-19 situations and also the calculation of ESI is also more due to the
situations of the people keeping all situations in mind . And the percentages of advances
taken are more in the year compared to previous . due to Covid the sales of retail shops
decreased so the organization . Is not in position to give proper salaries .
 CHAPTER-5

SUMMARY :

Human Resource plays an important in any organization The success of every organization
depends on human resources. Wage analysis is the important field in human resource
management department. To motivate the employee, attract employee, retain employee and
increase the satisfaction of employee towards the job, organization has to wage for the
employee.

It is also useful for workers' participation towards organization, performance appraisal system
and increasing the strength and productivity of the organization wage referred as rewarding
employees for their performance of assigned tasks. Reward systems on their own have a great
capacity and serve the purpose of attracting motivating and retaining people. The wages paid
to employees are based on complex set of forces.

In this report. I am studying the behavior of employees in Tummidi Brothers towards wage
analysis policies using multivariate techniques Le Factor Analysis On the basis of survey data
collected from employees who were engaged at various departments like IT& Networking,
Risk & Audit, Finance and Account, sales etc, six factors are identified. This report shows the
opinion of employees for wage policy and effectiveness of wage factors.
FINDINGS:

• From the data analysis it is clear that 60% employees or satisfied with the current welfare measure
policies.

• Most of the employee agreed that welfare measures will improve their efficiency productivity and
performance etc.

• Welfare measures leads to job satisfaction and cooperation among the employees.

• Most of the employees agreed that clever turnover can be reduced through proper motivational
techniques
SUGGESTION:

• The company should try to improve the welfare measures.

• The company can provide better welfare activities to the employees.

• The company can adopt a better motivational policy.

• The company can give more attention on improving the employee welfare in the organization

• The company must take adequate steps to find out timely welfare needs of the employees.
CONCLUSION:

Various studies point out that labour welfare schemes contribute to the
development of the health and safety of the labour force and make for amore
productive work force. The proper formulation and implementation of these
schemes involves understanding the working conditions and needs of the labour
force. Many scholars are of the opinion that labor welfare schemes enable
workers to enjoy a richer life as well as improve the productivity and efficiency
of these workers. They increase the pro-ductivity of the organizations which
employ them and promote healthy industrial relations the maintaining
labourmanagement peace. They also make the quality of working life better and
raise the standard of living of the labour force. As a result of effective labour
welfare measures workers generally take a more active interest in their jobs and
work with a sense of involvement and participation, Labour welfare schemes
need to be considered by Indian employers as a worthy investment since they
will provide their organizations with a healthy, stable, and productive labour
force.

BIBILOGRAPHY:

Books:

Wage Account Books in Tummidi Brothers

Websites

www.wikipedia.com

www.plog.prescholar.com www.tummidibrothers.com

thehindu.com