Compensation is what workers attain in exchange for their contribution to the organisation. Pay refers to the base wages & salaries workers normally receive. Compensation forms like bonuses, commissions and profit sharing plans are incentives designed to encourage workers to generate results beyond normal expectation. Benefits like medical, insurance, retirement, recreational etc., represent a more indirect kind of compensation. The amount of compensation attain by a worker should reflect the attempt put in by the worker, the degree of complexity experienced while expending his energies, competitive rates offered by others in the industry and the demand- supply position within the country, etc. The pay arrangement of a company based on several factors like, company's paying capacity, labour market conditions and legal provisions. Under the Workmen's Compensation Act, year 1923, "Wages for leave period, overtime pay, holiday pay, bonus, attendance bonus, and good conduct bonus" form part of wages. Under The Payment of Wages Act, in year1936, Section 2 (VI), "any award of settlement & production bonus, if remunerated, constitutes wages. Under the Payment of Wages Act, 1948, "reduction of expenditure compensation, payment in lieu of notice & gratuity payable on discharge constitute wages." The mechanization of job evaluation is evolving into an effective way of supporting the desire of global organizations, highly due to the potential of network dependent job evaluation tools. They fall into two wide areas: Administrative support, & Evaluation decision support.