Payment by Results-Piece-work Rate

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The payment of wages under this system is based upon the out turn of the worker. The rate is fixed per piece of work and the worker is paid according to the pieces of work completed or the volume of work done by him, irrespective of the time taken by him in completing that work. A workman is free to earn as much as his ability, energy, or skill would allow to him to produce.

 

The various schemes falling under ‘Payment by results’ make speed as the basis of payment, instead of time. Accordingly, these schemes are just the opposite of the time wage  system. They are so called because of the fact that wages are linked to the volume of work done regardless of the time taken by workers. Efficiency is recognized in all these schemes and workers get wages according to their ability, efficiency, and speed. The following schemes fall under the payment by results method of wage payment.

 

  1. Straight Piece Rate.
  2. Differential Piece Rate.
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