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Distinguish between Piece rate and Time rate?
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Answer / k.rani
for unit of producing pay rate is called piece rate. for
per hour producing products is called time rate
| Is This Answer Correct ? | 46 Yes | 8 No |
Answer / ghulam mujtaba s/o. muhammad i
PIECE RATE
Piece rate or piecework is defined as work paid for
according to a set rate per unit. Webster’s Collegiate
Dictionary. A piece rate must be based upon an
ascertainable figure paid for completing a particular task
or making a particular piece of goods. The piece rate
earned must equal or exceed the State’s minimum wage rate
for all hours worked. (See appropriate IWC Order and
Minimum Wage Order)
Time rates are used when employees are paid for the amount
of time they spend at work. This is the most common method
of payment in the UK.
The usual form of time rate is the weekly wage or monthly
salary. Usually the time rate is fixed in relation to a
standard working week (e.g. 35 hours per week).
The employment contract for a time-rate employee will also
stipulate the amount of paid leave that the employee can
take each year (e.g. 5 weeks paid holiday).
Time worked over this standard is known as overtime.
Overtime is generally paid at a higher rate than the
standard time-rate – reflecting the element of sacrifice by
an employee. However, many employees who are paid a monthly
salary do not get paid overtime. This is usually the case
for managerial positions where it is generally accepted
that the hours worked need to be sufficient to fulfil the
role required.
The main advantages of time-rate pay are:
• Time rates are simple for a business to calculate and
administer
• They are suitable for businesses that wish to employ
staff to provide general roles (e.g. financial management,
administration, maintenance) where employee productivity is
not easy to measure
• It is easy to understand from an employee’s perspective
• The employee can budget personal finance with some
certainty
• Makes it easier for the employer to plan and budget for
employee costs (e.g. payroll costs will be a function of
overall headcount rather than estimated output)
The main disadvantages of time-rate pay are:
• Does little to encourage greater productivity – there is
no incentive to achieve greater output
• Time-rate payroll costs have a tendency to creep upwards
(e.g. due to inflation-related pay rises and employee
promotion.
| Is This Answer Correct ? | 34 Yes | 7 No |
peice rate in the sense the company decides to pay certain
price for the peices they produced as to encourag the
workers by paying the scale as decided per peace
time rate generally means the working hours in the company
as the working hours exceeds the additional hours will be
treated as o.t
| Is This Answer Correct ? | 9 Yes | 12 No |
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