Factors that determine the level of wages in an economy

Level of education and training. Highly skilled labour is paid more % because of the high productivity and efficiency than a worker with a low level of education who is inefficient and needs further training.

Cost of living. High costs of living like in urban areas leads to high wages to a worker to enable them to sustain better standards of living while low costs of living like in rural areas leads to low wages given to a worker because minimal cost required to sustain a given lifestyle.
Level of talents and natural gifts. A highly talented worker is gifted contributes more to output hence earns more wages than a worker who is talented and contributes less to output.
Nature of the job. Highly risky jobs results into high wages given to worker-compensate them for the risk they are exposed to while less risky jobs results low wages given to workers.
Level of experience/ responsibility. High level of experience or more responsibilities leads to high wages given to a worker because of the high level of efficiency while limited experience or no responsibility leads to low wages given to a worker since he contributes less to a firm's output.

The bargaining strength of the individual workers. A worker with a strong bargaining power is able to be paid a high wage because of his ability to convince the employer for better pay than a worker with low bargaining power who cannot easily convince the employer for a better pay even when they are of the same qualifications and do the same job.
The number of hours worked (time rate system). More time spent worker at a given job leads to a high wage given to a worker because contributing more to output but less time taken on a given job, results into low wage given to a worker since the contribution to output is low.
The strength of the workers' trade unions. Workers under trade unions with strong bargaining power earn more wages because of their ability to negotiate for better terms of employment but workers under weak trade unions are paid low wages since they cannot actively negotiate for better terms of service.
Ability of workers to do work (piece rate system). More amount of work done high wages given to workers because of their high level of productivity but less amount of work done leads to low wages given to a worker due to the low levels of productivity.

Government policy on wages. The government gives different wages to different civil servants in different departments. Some are paid high wages because of their levels of experience, education and productivity while others are paid low wages because of their low levels of experience and productivity.
Level of discrimination in the labour market. Some employers pay high wages to some workers and at the same time other workers are paid low wages for the same occupation within the same company/firm basing on differences in age, religion, gender and political party.
Employer's ability and willingness to pay. The higher the willingness and ability to pay the workers, the higher the wages given but when the ability and willingness to pay the workers is low, the wages given to the workers are low.

Market forces of demand and supply of labour. A high demand for labour compared to labour supply leads to high wages paid to workers since there are more job vacancies than the job seekers but a high labour supply compared to demand for labor leads to low wages paid to workers as the job seekers are more than the job vacancies available.