Disadvantages of Piece Rate System

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  1. In the race to earn more wages by producing more, the quality of products is likely to deteriorate. So it requires strict inspection and quality control.
  2. Continuous and increased working for some days may cause fatigue and ill health to the workers.
  3. To speed up production, the machines, tools, and equipments are sometimes not handled with the care that they require, and so the workers expose themselves to accidents, besides causing loss of breakdown to the machines, equipments etc.,
  4. The inefficient workers earning less of wages start feeling jealous of other workers who earn more. This creates unhealthy atmosphere.
  5. The workers feel insecure of earning during the days of ill health, holidays, etc.
  6. This system is not useful for quality products.
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