Piece-rate form of remuneration - everything is fair

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

As you know: every work must be paid. And it should be paid fairly, in accordance with the complexity, qualifications of the employee, the time spent and the amount of work performed. That is why the following forms of payment are common in our country: time-based and piecework.

As for the time-based form, everything is simple here - this is payment for the time that the employee has worked. The amount payable depends solely on the number of days or hours worked and is usually a constant fixed figure.

The piece-rate form of remuneration is considered more correct and fair. With this form, the worker is paid for all his work, and therefore he has the opportunity to earn a large amount of money, of course, making an effort for this. Piecework form of remuneration is the receipt of wages for the number of services rendered, work performed or products produced. As is clear, such payment stimulates more productive work and therefore does notless beneficial to the employer. Although you can also find a minus - a piecework form of remuneration can cause a lower quality of work - after all, the employee will try to produce (perform) more, paying less than with time wages to quality.

It is for this that time-based payment can be of two systems: simple and time-bonus. The second encourages to improve the quality of work (manufacturing) - quality improvement is encouraged by bonus payments.

Piecework wages are appropriate where certain jobs are performed that can be quantified. In such payment, there is such a thing as a rate calculated for a certain amount of work or services.

As discussed above, piecework and its systems are considered to be a fairer form of pay for many types of work, as well as a better way to motivate workers. The amount of earnings does not always depend on personal development. As well as time-based, piecework form of payment is divided into systems. The chosen system for piecework payment affects the parameters on which the salary will depend.

• A simple system involves accounting for personal development. Its use is very convenient, therefore it is popular and is used where it is possible to keep individual records for each employee.

• Indirect piecework is suitable for workers who do not perform work on their own, but provide for the work of another. With such a payment system, the amount of earnings depends on how much work (services) will be performed by the "basic"worker.

• Piecework-premium is no less popular than simple piecework payment. With her, in addition to the salary calculated for the amount of work performed within the approved norm, a bonus is paid.

• Under the piece-progressive system for work performed above the norm, the calculation is carried out at higher prices.

• The chord system differs from others in that it sets prices not for each work, but for the whole set of works.

As you can see, different forms of payment are suitable for works of various specifics. Therefore, they all have the right to exist. And which one to choose is up to the employer.