Methods of wage payment

Discussed about time rate and piece rate methods.

1. Pooja Kumari Assistant Professor CMG GCW Bhodiakhera Fatehabad Methods of Wage Payment

2. Wage Payment Methods Ways To Calculate WAGE

3. Ideal Method for Wage Payment

4. Methods of Wages Payment

5. Time Rate Method Wages = Time worked (Hr.) * Rate per hour

6. Time Rate Method Why??? Quality of product is important Different process require to complete work Production can not be measured in units

7. Method 1: High Wage Rate Wages Rate= >Normal rate To attract efficient worker as high wage than industry normal rate.

8. Method 2: Graduated Time Rate Types Merit basis Cost of living index High merit more wages Low merit/efficiency-> low wage Cost of living index increases -> increase wages

9. Piece Rate System Wages = Qty. produced * rate per unit Focus on production by labour Ignore time taken in production

10. 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….

11. Methods of Piece Rate System Merrick Differential Piece Rate <=83% of standard output Normal piece rate 83-100 110% of normal piece >100 % 120% of Normal piece rate

12. Thank You…