Consolidation of variables to determine wage from Islamic literature
| Factors to consider in wage determination | Explanation |
|---|---|
| Employee Skills | The skills, knowledge and expertise of an employee in the relevant field should be considered to determine their wage |
| Value of work/Performance-based pay/Productivity and contribution of the employee | The value of an employee’s work and their productivity and contribution to the organization should be considered to determine their wage. Performance-based pay may be used to incentivize higher productivity |
| Equity | Equity refers to fairness and justice in the distribution of resources, opportunities and benefits, regardless of individual differences or circumstances |
| Will | Will refers to an individual's internal motivation, drive and determination to accomplish a task or goal |
| Quality of Work | The quality of an employee's work and their ability to meet quality standards should be considered to determine their wage |
| Employer Profit | The profit earned by the employer may be considered in determining the employee's wage |
| Nature of Work | The nature of work and the degree of difficulty, danger and skill required should be considered to determine the employee's wage |
| Fair Compensation Practices | The employee's wage should be fair and transparent, with no discrimination or exploitation |
| Fair Compensation for Labor | The employee's wage should be commensurate with the work performed and reflect the prevailing market rate |
| Profit-Sharing | Sharing of profits with employees may be used to incentivize higher productivity and increase employee morale |
| Employee Ownership | Employees may have ownership in the organization, which may motivate them to work harder and increase productivity |
| Non-Monetary Incentives | Non-monetary incentives, such as recognition, job security and opportunities for growth and development, may be used to motivate employees |
| Justice and Fairness | Justice and fairness are key components of Islamic ethics and should be reflected in the guidelines for wage determination |
| Prevailing Market Rate | The prevailing market rate for similar work should be considered to determine the employee's wage |
| Mutual Agreement | The employee and employer should come to a mutual agreement on the wage, which should be fair and transparent |
| Inflation and Purchasing Power/Needs of Workers | The impact of inflation on the purchasing power of workers and their needs should be considered in determining the wage |
| Ethics and Morality | Ethical considerations, such as the principle of cooperation, should be reflected in the guidelines for wage determination |
| Cost of Living | The cost of living in the region where the employee resides should be considered in determining the wage |
| Demand and supply for labor | The supply and demand for labor in the relevant field should be considered in determining the wage |
| Factors to consider in wage determination | Explanation |
|---|---|
| Employee Skills | The skills, knowledge and expertise of an employee in the relevant field should be considered to determine their wage |
| Value of work/Performance-based pay/Productivity and contribution of the employee | The value of an employee’s work and their productivity and contribution to the organization should be considered to determine their wage. Performance-based pay may be used to incentivize higher productivity |
| Equity | Equity refers to fairness and justice in the distribution of resources, opportunities and benefits, regardless of individual differences or circumstances |
| Will | Will refers to an individual's internal motivation, drive and determination to accomplish a task or goal |
| Quality of Work | The quality of an employee's work and their ability to meet quality standards should be considered to determine their wage |
| Employer Profit | The profit earned by the employer may be considered in determining the employee's wage |
| Nature of Work | The nature of work and the degree of difficulty, danger and skill required should be considered to determine the employee's wage |
| Fair Compensation Practices | The employee's wage should be fair and transparent, with no discrimination or exploitation |
| Fair Compensation for Labor | The employee's wage should be commensurate with the work performed and reflect the prevailing market rate |
| Profit-Sharing | Sharing of profits with employees may be used to incentivize higher productivity and increase employee morale |
| Employee Ownership | Employees may have ownership in the organization, which may motivate them to work harder and increase productivity |
| Non-Monetary Incentives | Non-monetary incentives, such as recognition, job security and opportunities for growth and development, may be used to motivate employees |
| Justice and Fairness | Justice and fairness are key components of Islamic ethics and should be reflected in the guidelines for wage determination |
| Prevailing Market Rate | The prevailing market rate for similar work should be considered to determine the employee's wage |
| Mutual Agreement | The employee and employer should come to a mutual agreement on the wage, which should be fair and transparent |
| Inflation and Purchasing Power/Needs of Workers | The impact of inflation on the purchasing power of workers and their needs should be considered in determining the wage |
| Ethics and Morality | Ethical considerations, such as the principle of cooperation, should be reflected in the guidelines for wage determination |
| Cost of Living | The cost of living in the region where the employee resides should be considered in determining the wage |
| Demand and supply for labor | The supply and demand for labor in the relevant field should be considered in determining the wage |
Source(s): Author's own work
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