Differential Piece Rates


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Differential Piece Rates

 

Under this system, efficient workers are paid wages at a lower rate. A definite standard of efficiency is set for each job and for efficiency below or above the standard different piece rates are paid according to different levels of efficiency. The following two methods of wage payment are studied under this system:

 

  1. Taylor Differential Piece-rate Method, and
  2. Merrick Differential Piece rate Method

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