Advantages of Piece Rate System

Advantages of Piece Rate System

1. It provides initiative and incentive to the workers to product more.
2. The productivity increases and cost of production per unit goes down.
3. As there is little wastage of time on the part of the workers, the fixed overheads and resources like plant, machinery and space are well utilized.
4. Workers feel free to work, complete with fellow workers, exhibit their efficiency, and earn more of wages.
5. Less supervision is required over the workers, and happy relations are maintained with them.
6. It is easy to calculate the labor of products.