Piecework wages

Piecework wages are primarily aimed at lowering the employer's cost of wages and increasing the quantitative indicators of work.

When making piecework wages, piecework rates are most often determined - the amount of earnings per unit of work performed or manufactured products. Piece rates are determined based on the established categories of work, tariff rates and production rates (time standards). The piece rate is calculated by dividing the hourly (daily, monthly) tariff rate corresponding to the category of work performed by the hourly (daily, monthly) rate of production. Settlements with employees can be either individual or collective, when wages are determined for the entire team of workers as a whole. Types of piecework prices:

• straight
• indirect
• progressive
• chord.

Direct Piecework

According to the direct piecework system, wages are calculated on the basis of the volume of work performed using solid piecework rates established taking into account the qualifications of the employee.

With this system of remuneration, the employee is often not materially interested in achieving high overall performance of the team as a whole, and in improving the quality of work results.

Piece-and-premium

The piece-bonus system of remuneration, along with payment at direct piece-rate rates, provides for bonuses for overfulfilling the production standard and for achieving quantitative and qualitative indicators determined by the existing bonus conditions.

In production , bonus indicators can be an increase in labor productivity, an improvement in product quality, the absence of defective products, and lower costs .

Chord

With a chord system of remuneration, earnings are set for the entire volume of work, and not for a separate operation. At the same time, a deadline for the performance of work is established. Settlement with employees is usually done after all work has been completed. If you plan to perform work in the long term, an advance can be paid.

Bonuses are practiced for shortening tasks.

This system is used in cases where labor is not amenable to standardization : during construction , repair work, etc.

Piecewise Progressive

Compensation with a piece-wise progressive system within the established norms is made at direct piece-rate rates, and above these rates-at higher rates. As a rule, the increased rate exceeds the unchanged rate by no more than two times. Under this system, earnings grow faster than labor productivity ; therefore, it is advisable to introduce this system temporarily (3-6 months) in critical areas of work. For example, when an enterprise needs to fulfill an urgent order or eliminate the consequences of an accident .

Mixed (time-piece)

Mixed wages is a synthesis of piecework and time wages.

• Time wage
• Wage
• Minimum wage

1. ↑ Piece-rate pay // Storcheva M.A. Management and labor economics. New English-Russian explanatory dictionary. - St. Petersburg: School of Economics, 2004. - 576 pp. - ISBN 5900428826

• Genkin B. M. Economics and sociology of labor: a textbook for universities. - 5th ed., Ext. - M .: NORMA, 2005 .-- 416 p. - ISBN 5-89123-779-2
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