This is one of the very important areas in which the personnel manager is in a position to help the top management of the enterprise. Wages and salaries are part of the monetary and status incentives for employee motivation for higher performance.A fair wage and salary policy is a vital ingredient in wage and salary administration and is one of the vital areas of personnel administration. Sound wage and salary policies and programmers are essential to procuring, maintaining, developing, promoting and transferring employees and to get effective results from them.Wage and salary administration refers to the establishment and implementation of sound policies and practices of the employee compensation. It includes areas such as job evaluation, surveys of wages and salaries, development and maintenance of wage structure, establishment rules for administrating wages, wage payments, incentives, profit sharing, wage changes and adjustments,supplementary payments, control of compensation cost and such other related areas.Wage and salary administration refers to the development, implementation and on-going maintenance of a base pay system.