Objectives of wage and salary administration:

1. Reward employees according to the effect and merit.

2. Attract and retain the services of desirable employees.

3. Get improved employee morale and productivity.

4. Keep labour cost within reasonable limits so as to safe guard the interests of share holders, competitive worth of the org and its product and profitability.

5. Pay employee according to the importance and difficulty of the job.

6. Incorporate legal requirements.

7. Facilities payroll administration, budgeting and wage and salary control.

8. Simplicity collective bargaining.

9. Explain to the employees how and why they are paid.

10. Facilitate employee organizational flexibility.