FinanceAccounting

Piece-work - all honestly

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

As for the time-based form, everything is simple - it is payment for the time that the employee has worked. The amount to be paid depends only on the number of days worked or hours and, as a rule, is a fixed fixed figure.

A piecework form of payment is considered more correct and fair. With this form, the employee is paid all his labor, and therefore he has the opportunity to earn a large amount of money, of course, with the effort. The piece-rate form of payment is the receipt of wages for the number of services rendered, work performed or products produced. As you know, this payment stimulates more productive work and is therefore no less beneficial to the employer. Although you can find a minus - piece-rate wage form can lead to less quality work - after all, the employee will try to do (perform) more, paying less than with time-based payment, quality.

For this purpose, time-based payment can be of two systems: simple and time-premium. The second stimulates to improve the quality of work (production) - quality improvement is encouraged by premium payments.

The piece-rate form of payment is appropriate where certain works are performed, which can be counted in quantitative terms. In such a payment, there is such a thing as a pricing calculated for a certain amount of work or services.

As stated above, the piece-rate wage and its systems are considered a more equitable form of payment for many types of work, as well as the best way to motivate employees. The amount of earnings does not always depend on personal output. Just like the time-based, piece-rate form of payment is divided into systems. The chosen system with piece-rate payment influences on what parameters the salary will depend on.

• A simple system involves accounting for personal output. Its use is very convenient, therefore it is popular and is used where it is possible to maintain an individual account for each employee.

• Indirectly-piecework is suitable for workers who do not perform work independently, but provide work for another. With such a system of payment, the amount of earnings depends on the amount of work (services) performed by the "main" employee.

• Piece-bonus is no less popular than a simple piece-rate payment. With her over the salary, calculated for the work performed within the approved standard, a premium is paid.

• With a piecework-progressive system for work performed above the norm, the calculation is carried out at higher prices.

• The lump-sum system differs from the others in that the pricing for it is not set for each job, but for a set of works in general.

As you can see, different forms of payment are suitable for works of different specificities. Therefore, they all have the right to exist. And which of them to choose, to solve to the employer.

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