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Method of Wage Payment

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3 views

Method of Wage Payment

Uploaded by

sharmaprateek410
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Wage Payment

and Incentive
Plans
MEANING AND DEFINITION OF WAGES OF
WAGES

Wages means what a worker gets from employer in return ,


for the services rendered to him . The adequate payment of
wages without any discrimination to employee keep their
morale high .Wages includes both monetary and non-
monetary benefits . “Wages is a sum money paid by the
employers to their employees for rendering to the services
under a contract.” - Benham
In Brief…..
• All wage system must satisfy the basic needs
of the employee for food , shelter, clothing
and reasonable compensation for their efforts.
1. TIME BASED WAGE SYSTEM
2. PIECE BASED WAGE SYSTEM
All other wage system are combination of these
two methods of wage system
Time Wage System
• Wages are calculated on the basis of time worked irrespective of
the quality of work done
• Thus the wages are calculated by multiplying the time spent by
predetermined rate of wages
• Wage = Time spent * Rate per unit of time
Where T = Time spent in hours
And R = Rate per hour
For Example
Suppose that a worker is paid at the rate of rs. 9 per hour and he
has spent 200 hours at work during a particular month. His wages
for the month will be rs. 1800 . .
Piece Rate System
• Under this system, the wages are paid to a worker on the basis of
output produced by him without considering the time taken in
performing the work.
• Wages = N*R
Where N = no. of unit produced
R = Rate per unit
This earning of workers depends on the speed of the work and his
own individual skills and efficiency
For example,
• If a worker produces 100 pieces per day and he is paid at
the rate of Rs.1.2 per piece, the daily wage is 100 x 1.2 =
Rs.120.

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