Changing wage structures

Varying income agreements

Description

Changing wage structures involves systematically adjusting the distribution, levels, and forms of employee compensation to address economic disparities, incentivize productivity, and ensure fair remuneration. This strategy aims to remedy wage inequality, reduce poverty, and align pay with skills and performance. Practical actions include revising pay scales, introducing minimum wages, implementing pay transparency, and restructuring benefits, thereby fostering equitable labor markets and supporting social and economic stability.

Context

The following factors seem to explain recent changes in wage structures: growing unemployment, technological innovation, the income policy of the government, the collective agreement policy of the trade unions, the wage policy of the employers and the policy to promote equal remuneration of men and women.