What Are Payroll Costs?

Wage cost is a big item in cost management, it directly affects the level of total operating cost of an enterprise, and it should be paid special attention to. The so-called wage cost refers to the cost incurred by the enterprise to pay employees, including wages, bonuses and benefits.

Wage cost

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The main problems of wage cost management in enterprises

1. Complex organization and redundant staff

Strategies for improving wage cost management

Wage cost income distribution system

The reform model of the state-owned enterprise's wage distribution system can be summarized as follows: enterprises make independent decisions, government supervision and regulation, enterprises self-restraint, and distribution according to work is combined with distribution according to factors. Enterprises can establish a basic wage system based on post wages, which mainly combines post wages with benefit wages, gradually incorporates various labor incomes into wage distribution, and incorporates most of the subsidies and allowances in total wages into post wage assessments. Reduce the proportion of fixed wage income to post wage income, and implement a post benefit structure wage system that is dominated by post wages, supplemented by annual average wages, post allowance wages, and reward wages.

Wage cost incentive and restraint mechanism

Establish a relatively scientific assessment system. By establishing an assessment system, the unit's work objectives (products, output, quality, profit, safety and other indicators) are quantified to each job position. According to the completion of each employee's work tasks, evaluate the individual's labor contribution, determine the level of payment of workers' post wages, and finally achieve the difference from labor differences to post wage differences.

Wage cost control wages

The first is to carry out job surveys, do a good job of "recruitment and appointment", and prevent the phenomenon of setting up posts by people. Fundamentally solve the problems of too many institutions, overstaffed people, and unreasonable distribution relations; the second is to do a good job in technological development, improve the level of science and technology, update equipment, introduce advanced management experience, improve labor productivity, and reduce wage costs; the third is to implement The wage cost responsibility system implements the wage cost to each department (or workshop) to control the wage cost within the planned scope. The fourth is to control the total wages and form a normal wage growth mechanism to distribute wages to subordinate operating units. In accordance with the principles of "market mechanism adjustment, efficiency and efficiency determination, total wage control, and unit independent distribution". Gradually establish an effective incentive and restraint mechanism, and implement a variety of distribution methods, such as the assessment of total wages and comprehensive indicators of economic benefits.

Wage Cost Wage Fund Management

Strengthening the management of wage funds will help to achieve the state's control over total wages. It can urge all units within the enterprise to strengthen economic accounting, reduce wage costs, and continuously improve economic efficiency. It can effectively prevent unauthorized bonuses and allowances. First, the wage fund is managed under the centralized management of the labor and wage department, which is not allowed to be used in conjunction with each other, and wages cannot be paid directly from other expenses. And strictly implement various stipulated wages; the second is to correctly formulate the salary fund plan, the total monthly capital does not exceed the fund plan indicators, the number of employees does not exceed the approved fixed number, the basic salary meets the scope of the state regulations; the third is to raise wages without authorization Standards, unauthorized increase in rewards, allowance items or standards, overtime overtime without approval, unauthorized recruitment of workers, etc. are not allowed to pay wages.