Methods of wage payment
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This document discusses different wage payment systems and their features, advantages, and disadvantages. It describes several time rate systems where wages are calculated based on hours worked and a set hourly rate. These include straight time rate and graduated time rate. It also outlines various piece rate systems where wages are calculated based on units of production and a set rate per unit, such as straight piece rate, piece rate with graduated time rate, and differential piece rate systems. The document analyzes the pros and cons of both time rate and piece rate methods for determining wages.
Methods of wage payment
- 1. Pooja Kumari Assistant Professor CMG GCW Bhodiakhera Fatehabad
- 4. Time Rate Method High wage rate Graduated time rate Piece rate system Simple piece rate Piece rate with graduated time rate Differential piece rate Incentive scheme `Premium Bonus Scheme 1. Halsey Premium 2. Halsey ware Scheme 3. Rowan Premium Scheme Combination of time and piece rate Group System of Bonus rate Other Incentives
- 5. Wages= Time worked (Hr.)*Rate per hour
- 6. Why??? Quality of product is important Different process require to complete work Production can not be measured in units
- 7. Advantages of time rate system • Oldest and simple method • Guaranteed wages • Quality product Disadvantages of time rate system • Slow production • Demotivate efficient worker
- 8. Wages Rate= >Normal rate To attract efficient worker as high wage than industry normal rate.
- 9. Types Merit basis Cost of living index •High merit more wages •Low merit/efficiency-> low wage Cost of living index increases - > increase wages
- 10. Wages = Qty. produced * rate per unit •Focus on production by labour • Ignore time taken in production
- 11. Advantages of Piece Rate system Disadvantages of Piece Rate System Increase production Ignorance of quality Less time wastage Fatigue due to greed of more production Think More….
- 12. Straight Piece Rate • Simple • Unit produce*rate per unit Piece Rate with Graduated Time Rate • Guaranteed time wages • Excess piece rate if above guaranteed Differential Piece rate • Taylor • High rate=if above or equal to standard • Low rate if below standard Merrick Differential Piece Rate <=83% of standard output Normal piece rate 83-100 110% of normal piece >100 % 120% of Normal piece rate
- 13. Thank You…