Time wages - what is it? Varieties of time wages

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-02 13:48

Payroll is a process controlled by the labor code and legislative acts. The choice of the employer has several forms that can both stimulate the employee and truly reward the effort. Remuneration, calculated depending on the time actually worked, is the so-called time wage. This is a form independent of the result of the duties performed. Only a certain period of time is taken into account. Consider the order of its calculation and varieties.

When is it used?

Time wages are a way of paying employees whose work does not directly affect the overall productivity of the enterprise. It is obvious that the foreman of the workshop, with proper motivation, will complete more orders if he is interested in this. The output produced during his shift is proportional to the effort expended.

The work, for example, of a teacher consists of "issuing" hours, i.e. actually spentlessons. A situation arises in which it is difficult to calculate how much work an employee has done: this month everyone has mastered the material, in the next two-thirds. Yes, and how do you set it up for sure? But it is also necessary to evaluate the work somehow. This is where the time wage system comes in.

Elements of the tariff system

Actually, time wage is a value determined by multiplying the tariff rate by hours worked. The tariff rate is listed as the absolute amount of wages per unit of time. The minimum tariff rate of the first category is used as the initial value. It is used both for calculating the basic salary and for calculating allowances. The totality of categories of workers and the values of the corresponding coefficients form the tariff scales.

Detailed information on the rates and labor standards that must be met per unit of working time is contained in the tariff and qualification reference books. So, the amount of wages of a worker also directly depends on his category or category, as well as on the complexity of the duties performed. If work is carried out in harmful or difficult conditions, an increased rate is set.

Unified tariff scales are developed by both the state and commercial enterprises. In order to comply with the norms and rules of labor legislation, as well as the correct assignment and definition of categories, tariff and qualification requirements and a qualification guide for various positions and areas have been introduced. On themBased on the basis, the management of the enterprise issues its own tariff scale or adheres to state UTS.

Basis for settlement

The company has a developed tariff system that does not contradict the law. What else is needed in order to calculate wages and what data is allowed to refer to in this case? The main document is the time sheet. It contains detailed information on hours/days actually worked, as well as absences with the reason. The accountant makes calculations only on the basis of the data given in the timesheet. The time wage system takes into account each hour and day worked. The need to accrue compensatory and additional payments, such as overtime, work on holidays and weekends, sick leave, travel allowance is also reflected in the report card.

Types of time wages

Even within the same settlement system, there are disagreements with employees. For example, it is more convenient for specialists and managers to pay salaries in the form of a salary. For some areas of activity, it is necessary to additionally motivate staff by adding a bonus part. Some work on hourly shifts, which encourages the use of hourly rates. All this led to an additional delimitation of the general time-based system.

In its pure form, it is practically never found, but often workers encounter its varieties:

• simple time-based;
• premium time;
• time-based salarypart;
• piecework;
• time-based with a set standardized reference.

Each of them is the standard of settlements with employees stipulated by the labor code. Let's consider their characteristics in more detail.

Simple time wages

Based on the name, it is easy to guess that this is the most "easy" and "transparent" wage calculation. Earnings are calculated based on hours worked. Time spent effectively or not will not affect the salary received. From month to month, the employee consistently receives almost the same amount, which fluctuates slightly due to the different number of days off in the month. Both lazy people and workaholics will be rewarded equally. Is it fair? Most employees and employers are more than satisfied with this system. Stability is the main "plus" of this form of payment. The lack of influence on the employee in the form of "motivation" and "demotivation", as well as some injustice of the same remuneration, regardless of the efforts made, is the main "minus".

Let's get back to the calculations. Based on the actual time worked and the convenience of its accounting, an hour, day or month can be taken as a unit. Hourly, daily and monthly wages are formed accordingly. This will be calculated using the formula: Z_p=T_c × B_{f, where:}

• Т_{с – tariff rate (hourly or daily).}
• B_{f – actual hours worked(number of hours, days).}

Applying monthly tariff rates (monthly payment) changes the calculation order: Z_p=B_f ÷ B_n × T_s, where B_n means the nominal number of working days in a month according to the schedule, while for B _{f accept actual days worked.}

Time wages with part of salary

Unlike a simple time-based form, the salary owed to an employee on a monthly basis remains constant at all times. In order to receive this part of the salary, it is necessary to work the specified number of days in a month and hours in working days. For example, the enterprise works 5 days a week for 8 hours. After fulfilling the conditions set by the employer, the employee will receive a fixed salary. In this case, the amount of wages will be the same in each month, regardless of how many working days “fell” for the period. Recalculation will occur only in case of absences, sick leave or vacation. Moreover, payments will be made not on the basis of tariffs, but on the basis of a monthly salary.

Example of salary calculation

Consider the situation when an employee is assigned a monthly salary, and one of the months was not fully worked out. For the initial data, we take the condition: a 40-hour work week is established with a salary of 25 thousand rubles. The first month was fully completed. The next employee went on paid leave for 14 days. The number of working days in each month is taken as 22. Calculate wages.

What is required from an employee to receive a salary? Be at the workplace for the prescribed number of hours and days per month. In the first case, the employee has fulfilled his duty and receives the due 25 thousand rubles. What about the second month? The calculation of time wages with a salary part for incomplete output will look like this:

25,000 ÷ 22 × (22 – 14)=9091 rubles (will be the monthly salary for the second month)

Vacation pay will be calculated on the basis of a salary of 25 thousand rubles, and the employee will receive a total of 9091 rubles. plus vacation pay.

Calculation at the tariff daily rate

What would change if the calculation was based on the daily rate? Actual hours worked (in this case 22 days and 8 days) would be multiplied by the established wage rate. So that the discrepancy in the answers does not confuse the reader, we will accept it based on the first condition (25,000 ÷ 22=1137 rubles):

• 22 × 1137=25,014 rubles – salary for the first month;
• 8 × 1137=9096 rubles – salary for the second month.

There is a difference in the calculations. With a fixed salary, one way or another, you have to calculate the average daily wage to pay for sick leave or vacation pay or to make other deductions / allowances. In the case of daily or hourly billing, the unit of earnings is fixed.

Time wage with bonuses

An interesting method of calculation for both the employer and the employee is bonus wages (time-based). This is both guaranteed payments for actually worked days / hours and motivation to fulfill theirduties is better to get a bonus. The employment contract prescribes the conditions, the observance of which rewards the employee with additional payments in his favor. As a condition, it can be: fulfillment of the sales plan, length of service, 13th salary, results for the quarter / half year / 9 months, and so on. Time-bonus wages are calculated based on the percentage of bonuses or the established amount specified in the employment contract.

Mixed pay

Piece-time form of remuneration refers to a mixed payroll system. It combines a fixed payment for the hours / days worked or a salary part and a reward for the volume of products produced (sales).

Piecework and time wages are combined into one system where it is convenient for the employer. Typically, this method of calculation is used in direct sales, various trade organizations, and some manufacturing enterprises. With a mixed form of payment, the employee is more interested in the final result. Usually, a fixed percentage due to the employee is established from the volume of goods sold or manufactured products. So, the piecework is not limited, which allows a person to directly influence the level of his earnings.

Despite the obvious advantages of the mixed system, in fact, this form of remuneration is often disappointing: the employer deliberately underestimates the salary. Productivity, on the other hand, does not always directly depend on the employee, which ultimately results ina small income that is difficult to live on.

Example of calculation by piece-time rate

As you already know, time wages are calculated on the basis of actual hours worked. Consider a situation in which an employee has an hourly rate and 10% of the amount of output per month. We calculate his salary if it is additionally known that the hourly wage rate for an employee is 120 rubles. A total of 180 hours worked per month. The volume of manufactured products amounted to 124 thousand rubles.

Let's calculate time wages with piece rate:

1. Zp=W_f × T_{h=180 × 120=21,600 rubles}
2. 124,000 × 10%=$12,400
3. 21,600 + 12,400=34,000 rubles

An employee will receive 34,000 rubles at the end of the month.

Payroll with normalized task

This is a kind of time-based bonus payment. Sets the amount of work that must be completed within a certain time. In case of compliance with the prescribed task - additional earnings in the form of a fixed percentage of the salary or the amount accrued according to the tariff coefficients. The time-based form of wages guarantees the receipt of remuneration for labor activity. The bonus for meeting and overfulfilling the plan, as well as the proper quality or savings in electricity costs and other things, are great incentives for the employee.

Unlike the time-based piecework form, there is no direct connection with the amountoverfulfillment. The percentage is calculated from the already accrued wages, as a bonus. In the piecework form, calculations are carried out from the amount of the created turnover.

Modern time wages are a combination of its various forms, suitable for a particular situation. Salary based on hours worked - the possibility of calculating with an employee whose productivity cannot be calculated in monetary or physical terms. With the help of a bonus or piecework, as well as the establishment of a normalized task, the employer gets the opportunity to motivate the employee to improve efficiency and quality. Time wages are the point of contact between the interests of the company and the individual worker.