Regulation of Bonuses

Jan Adam

Chapter 4 in Wage Control and Inflation in the Soviet Bloc Countries, 1979, pp 77-91 from Palgrave Macmillan

Abstract: Abstract In the preceding chapter, regulation of basic wages was discussed. However, employees of enterprises also receive bonuses, premiums and rewards from funds outside the wage-bill,1 mainly from the incentive fund. Even if these bonuses2 are not very large—their present range in the Soviet bloc countries is from 5–12 per cent of the enterprise wage-bill including bonus fund3—they must be regulated in order to ensure that their magnitude does not exceed the plan limits and thus contribute to inflationary pressures. They must also be regulated since they serve as the main incentive,4 a function which can be filled only partially by basic salaries (and the same is true of wage rates), which are fixed by the centre and in most countries changed by it at long time intervals. The size of basic salaries is primarily supposed to be a reward for knowledge and experience gained over a long period. It is felt that it would be wrong to change them in accordance with short-term fluctuations in performance. In addition it would be politically difficult to reduce basic salaries (or wage rates or even basic wages) in the case of nonfulfilment of targets.5

Keywords: Incentive System; Basic Salary; Soviet Bloc; Basic Wage; Employment Income (search for similar items in EconPapers)
Date: 1979
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-04892-2_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349048922

DOI: 10.1007/978-1-349-04892-2_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().