Salary, its function, its interaction with labor productivity

Constitution of the Russian Federation guarantees freedom of labor and prohibition of forced labor to the RF citizens. While the citizens have to meet not only their own needs, but also make interesting business, which leads to employment and, therefore, to receiving wages. Salary plays a huge role in the economic development of the state and the people welfare improvement; it is also a means of motivating and the main source of income for citizens. Salary reflects the wide range of economic relations between the society, labor team and employees regarding their participation in public labor and its payment. However, salary cannot exist without labor productivity as it directly depends on it; and not only depends but can and should grow proportionally to the growth of the labor productivity.

labor productivity, salary costs, salary, gross added value, model of break-even point, national economy, revenues of the company, variable costs, fixed costs, profitability