Theoretical and practical aspects of wages differentiation

Theoretical issues of wages are analyzed in the article: the structure of wages is determined, the main functions of wages are analyzed, the factors influencing wage size are distinguished and systematized, and the main aspects of the wage differentiation are revealed. Moreover, results of the research “Differentiation Problems of Main Wages in Enterprises of Šiauliai City” are presented allowing proposing that differentiation of main wages in private capital enterprises of Šiauliai City is overweighted (as scientifically reasoned systems of main wages calculation are not applied). It is emphasized in the article that this problem could be solved if the technique of Post Assessment and Main Wages Calculation prepared by the Institute of Labour and Social Research for the calculation of main wages in enterprises would be applied. The basis of this technique is the post assessment criteria generalized by the International Labour Organization (Geneva scheme). It is proved that this technique is proper as was applied while calculating main wages for the employees of “S plius” enterprise group.