SALARY CEILING Meaning and
Definition
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A salary ceiling refers to the maximum limit or threshold set on the earnings or remuneration that an individual or a particular group of employees can receive within a specific time frame. It is a predetermined cap that establishes the highest salary that can be earned, usually within an organizational or industry context.
The purpose of a salary ceiling is to control and regulate the compensation structure by imposing a limit on the amount of money that an employee can earn. This mechanism aims to promote fairness, prevent excessive income disparity, and ensure that compensation remains within a reasonable range.
Salary ceilings are often implemented by employers, industries, or governing bodies, either through collective bargaining agreements, employment contracts, or industry-wide regulations. They are commonly used in various sectors such as professional sports leagues, government entities, and public corporations.
The salary ceiling can vary greatly depending on the organization, industry, and level of governance. It may be based on factors such as seniority, job position, performance, or a combination of criteria. Exceeding the salary ceiling usually requires special justifications, such as exceptional performance, unique skills, or strategic importance to the organization.
In summary, a salary ceiling is a predefined limit on earnings that restricts the maximum remuneration an individual or group can receive. It serves as a mechanism to maintain fairness, manage compensation structures, and ensure income distribution remains within reasonable bounds.
Common Misspellings for SALARY CEILING
- aalary ceiling
- zalary ceiling
- xalary ceiling
- dalary ceiling
- ealary ceiling
- walary ceiling
- szlary ceiling
- sslary ceiling
- swlary ceiling
- sqlary ceiling
- sakary ceiling
- sapary ceiling
- saoary ceiling
- salzry ceiling
- salsry ceiling
- salwry ceiling
- salqry ceiling
- salaey ceiling
- salady ceiling
- salafy ceiling
Etymology of SALARY CEILING
The term "salary ceiling" is a combination of two words: "salary" and "ceiling".
The word "salary" originated from the Latin word "salarium", which referred to a soldier's allowance to buy salt. In ancient Rome, salt was considered a valuable commodity, and soldiers were often paid in salt rations, known as "salarium". Over time, "salarium" came to refer to any regular payment given to individuals, and eventually evolved into the modern term "salary", which denotes a fixed compensation paid to employees for their work.
The word "ceiling" derives from the Old French word "cile", which means "sky" or "heaven". It entered the English language during the 13th century and originally referred to the interior upper surface of a room or building. Over time, it also came to represent an upper limit or constraint on something.
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