Discussed about time rate and piece rate methods.

1. Pooja Kumari
Assistant Professor
CMG GCW Bhodiakhera
Fatehabad

3. Features
for Ideal
Wage
payment
Fair to
both
Easy
calculation
Efficiancy
related
Minimum
wage
guarantee
Quality
and
incentive
oriented
Flexible
Ability to
pay

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…