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The salaries in new corporations are initially set to the average of salaries in all the corporations in the country. The level is a percentage relative to the initial salary levels as at the start of the game. The original level was 100.
You are able to increase or decrease the salary level in the corporations and you may leave this decision to the automatic system that will decrease salaries if a corporation is losing money and increase the salaries if a corporation is profitable.
The salary level is a corporation is measured with an index, which originated at 100. if the index is at a 200 level, it means that salaries are at twice the base level.
If salary levels are below 70, changes are limited to 10 points up or 3 points down.
If salary levels are above 70 and lower than 500, changes are limited to 3 point up or 3 points down.
If salary levels are above 500, changes are limited to 3 point up or 30 points down.
It is also possible to set salary target levels in corporations. Salary levels will then be changed monthly with the permitted percentage until they reach the target level. Targets can be set to all corporations at once.
The salaries are important for the motivation of workers (The level influences the welfare index), and with it the production levels in the corporation. Salary levels are also very important in the competition with other corporations.
A corporation that pays its workers at a lower level than other corporations in the same country may see its workers quitting their jobs. These workers will move to other corporations for better salaries. This process is limited to 10% of the workers in any corporation per game month.
There is always some competition for workers, between different corporations, state and private corporations. There is also a tendency to increase salaries to prevent workers from moving out.
High salary levels however, will result in high salary costs for the corporations and reduced profitability. Corporations may suffer losses as result of salaries that are too high. They will see their market value plummet, their cash reduced, they will have to take loans and pay interest and they may end up in bankruptcy that will make them close and disappear. All their workers will become unemployed.
Salaries in corporations have an influence on the government salary index. If Government salaries remain lower, people can start leaving their government jobs for employment in the industry.
Private corporations can set their salary level without any influence on the government salary index and the movement of workers.