Merrick Differential Piece-rate

Merrick Differential Piece-rate

In the Taylor Method, the effect on the wages is quite sharp in the marginal cases. To remove this defect Merrick suggested three piece rates for a job as follows:

Percentage of Standard Output            Payment under Merrick Method

Upto 83%                                            Normal piece rate

Above 83% and upto 100%                110% of normal piece rate

Above 100%                                       120% of normal piece rate