BusinessHuman Resource Management

Wage systems: transaction, time or chord

Pay is understood as a system of relations associated with the implementation of the employer's payments and employee benefits for his work in accordance with legislative and regulatory acts, agreements, labor and collective agreements and contracts. There are several forms, as well as a variety of wage systems.
In any form, wages are a reward for work, which depends on the quality, quantity, conditions and complexity of the work done, as well as the qualifications of the specialist. This category also includes a variety of payments, which are stimulating and compensatory.
Wages are usually issued in cash. But in accordance with the labor or collective agreement, other forms of remuneration of labor that are not connected with money signs (in kind) and not contradicting the legislation are possible. Such remuneration is paid upon a written application of the employee, and should not exceed a fifth of the total salary.
There are such types of pay as a lump-sum, piece-rate and time-based. They are classified into subspecies: simple time-based, time-premium, direct piecework, piece-progressive, piece-premium, indirect-piece labor.
In time work, earnings are accrued for a fixed amount of work time, and does not depend on the amount of work done. The salary of the time-based wage system is calculated by multiplying the daily or hourly rate by the worked-out number of days or hours. For some categories, with a full month's work, the salary is set in the form of official salaries. With an incomplete number of working days, earnings are calculated by dividing the rate by the rate of calendar working days, and multiplying the result by the number after the days worked.
Payment for the time-premium system is made by adding to the tariff earnings of the premium, which is determined as a percentage of the tariff or salary of the employee. The account of labor of employees at povremenke is conducted by means of the cards, being the primary documents.
Earnings of a piece-rate (transaction) wage system are formed on the basis of the number of manufactured units of goods or work performed at fixed rates, which are established taking into account the qualifications of the employee. With piece-bonus payment, employees are rewarded for overfulfilment of production standards, as well as for achieving quality indicators (no complaints, marriage).

According to the piece-rate progressive system, there is an increase in the payment for the same work, but performed in excess of the norm. Indirectly-piece-rate payment is established for employees involved in the maintenance of production, pickers, adjusters, assistant masters, etc. Its size is calculated as a percentage of the earnings of the main workers performing labor duties on the serviced site.
When calculating the salary for a piece-work system, documents on production are used.
In some cases, wage systems are mixed. So the labor of certain categories of workers can be paid simultaneously on a piecework and time-based system. For example, if the head of a small team combines management (time system) with the production nature of the work, the payment of which is calculated at piece rates.
With a lump-sum system, payment is made for a fixed volume of output or for passing certain stages of work.
With the brigade organization of labor to take into account the contribution of each worker, with the consent of the brigade members, it is possible to use the coefficients of labor participation.

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