How Islam Views Wages and Productivity : A Perspective Review

Abstract

The relationship between wages and productivity is likened to two sides of a coin that are closely
related. Talking about productivity without touching the wage aspect in an industrial process is likened to
expecting results, regardless of the causes that drive the realization of these results. If our productivity is
placed as a result or expected impact of the company on its workforce, then the construction of a fair,
objective and transparent wage system greatly contributes to realizing the company's goals. In terms of the
main causal factors for creating a work spirit that encourages labor productivity in a company, the wage
factor is the most influential factor in terms of labor. Considering those relationship, then studies of wages
and productivity are widely discussed by economists and management experts. However, generally the
discussion is based on the views of economists and management experts in general. The Islamic approach in
looking at economic and management issues still gets a smaller portion than the conventional approach. In
fact, Islam with the spirit and the values it carries provides a picture, pattern, and principles that are no less
important in the context of wages and their relation to productivity. Therefore, this study aimed to analyze
and provide formulations, concepts and an overview of the relationship of wages and productivity in an
Islamic perspective. As a result, there were several important principles in the context of the relationship of
wages and productivity in Islam.