Factors And Principles Of Fair Pay

Abstract

The article covers the issues of factors influencing the formation of fair wages. The principles on which the system of guarantees of realization of the rights of workers to a fair wage should be based are considered. There are two groups of factors in the formation of wages: a) market; b) non-market or socio-legal. The first group includes: 1)     changes in supply and demand in the market of goods and services in the production of which this work is used; 2) the usefulness of the resource of the entrepreneur; 3) the elasticity of demand for labor at price; 4) interchangeability of resources; 5) change in prices for consumer goods and services. The second group includes: 1) measures of state regulation related to the establishment of the minimum wage, minimum salary, subsistence level; 2) the level of wages and conditions of employment can have a significant impact on trade union policy, the strength of the trade union movement; 3)     the final results of the enterprise and the personal contribution of the employee; 4)     the existence of a system of guarantees for the realization of employees’ rights to fair remuneration. It is pointed out that we cannot study the institution of wages in isolation from the current economic situation in the country, so we need to know what factors affect the determination of the level of wages. There are four principles on which the system of guarantees for the realization of employees’ rights to fair remuneration should be based: 1) equality of remuneration; 2)     timeliness of remuneration; 3) completeness of payment of wages; 4) fair pay. It is concluded that the proposed and analyzed factors that affect the formation of wages should be studied and taken into account during the regulatory reform of the institution of wages. In our opinion, the principles on which the system of guarantees for the realization of workers’ rights to fair remuneration should be based must be enshrined in law. It is argued that the institution of wages needs comprehensive reform. And above all, it is necessary to pay attention to the principles on which it should be built, because these are the fundamental foundations.