Piecework, time-based and other types of wages. How to calculate wages under various wage systems

Under the piecework system, the work of an employee is paid depending on the quantity of goods produced, services rendered, or the volume of work performed. It is permissible to use piecework pay when an accurate calculation of the results of an employee's work is possible.

In our article we will consider some features of piecework wages.

What is piecework salary

Piecework payment allows the employer to increase the productivity of employees, it is especially relevant in production - factories, plants, etc. In contrast to the time-based form of payment, an employee on a piece-rate is interested in doing as much as possible, because the more he works out, the higher his salary will be.

Simple piecework wages - this is the result obtained by multiplying the quantity of products (works, services) produced by the piece rate.

For example, a worker has to make 5 parts in 2 hours, so his hourly production rate is 2.5 parts per hour (5 parts: 2 hours). At an hourly rate, say, 250 rubles. per hour, the piece rate is: 250 rubles / hour: 2.5 parts = 100 rubles / piece. Knowing how many parts an employee produced per month (let's say 450 pieces), it is easy to calculate his salary: 100 rubles / piece. x 450 pcs. = 45,000 rubles.

So in the system of remuneration, the piece rate determines how much a unit of the result of work should cost.

If bonuses are also paid to employees for good results, then we are talking about piece-bonus salary. Bonuses can be set as a fixed amount or as a percentage of the employee's earnings.

For example, if the monthly production rate is met and there is no marriage, employees are paid a monthly bonus of 10% of piecework earnings. The employee's salary amounted to 45,000 rubles, while he exceeded the norm by working without marriage, for which he will receive a bonus of 4,500 rubles. (45,000 rubles x 10%).

Thus, piece-bonus wages are the same simple piece-rate wages that provide for bonuses to employees for achieving certain indicators.

The piece rate may vary depending on the quantity of products produced (services rendered, work performed) per month.

For example, the following prices are set in production: when producing 100 items per month, the piece rate is 200 rubles per piece, and products produced in excess of the norm of 100 pieces are paid at a rate of 250 rubles per piece. If an employee produced, for example, 115 products, then his salary will be calculated as follows:

(100 pieces x 200 rubles/piece) + (15 pieces x 250 rubles/piece) = 23,750 rubles.

This piecework form of wages is called piece-progressive .

Also apply indirect piecework payment when an employee is not directly connected with production, but without his labor this production is impossible. The salary of such workers depends on the earnings of those who work in the main production.

Lump payment It is used in team work, when the reward for the completed task is divided among the members of the team, based on the time worked by each of them.

Piece work order

What is the basis for calculating wages for piecework wages? To record working time, a time sheet is used, and to record the results of labor, an order for piece work.

There is no officially approved piece work order form, so the employer can develop it himself, taking into account all the required details for primary documents. For some industries, unified accounting forms have been approved (waybills, piece work in agriculture, etc.), which can be used when developing your forms.

description of the work performed, services provided, or product names,
the norm of time per unit of production (works, services),
amount required and accepted,
rate,
the norm of hours, or days, and the amount of time worked,
the accrued amount of payment and possible surcharges.

The reverse side of the order may contain a time sheet.

The outfit is filled out for each piece worker, and in case of piecework payment, an outfit is issued for the entire brigade.

Getting a job, a person, naturally, is interested in what his salary will be and on what basis accruals will go.

In our country, two forms of remuneration are common: time and piecework. The first type of wages is more familiar to Russia.

However, piecework wages are being used more and more. What does piece rate mean?

Piecework wages are a form of remuneration for an employee of an enterprise or company, in which the amount of funds paid depends entirely on the quantity or volume of products produced. When determining the amount of wages, the complexity of the work performed, their quality and the conditions in which the person works are taken into account.

The piecework system of remuneration perfectly takes into account the interests of the employer. After all, each employee strives to perform the maximum possible amount of work while maintaining excellent quality. After all, if an employee makes a marriage, then his wallet has to pay.

Advantages and disadvantages

Piecework wages, like hourly wages, have a significant number of advantages and disadvantages for both the employee and his employer.

If we talk about the positive aspects of the "deal", then these are:

The amount of money earned depends entirely on the volume of products produced.
The amount of payment for one unit is completely determined by the abilities and knowledge of the person.
Opportunity to motivate employees and maintain products at the proper level. In many countries of the world in certain areas of industry (automotive, metallurgy, clothing, footwear, etc.) exclusively piecework wages are used.
Some jobs can be done by anyone. At the same time, his education, reputation, availability of documents, state of health does not matter. A vivid example of this is harvesting vegetables and fruits in the fields, unloading wagons, and so on.

With so many advantages, piecework wages are fraught with a lot of unpleasant moments for the employee and the employer.

Let's highlight the main ones:

The influence of factors beyond the control of the employee that may affect production (equipment breakdown, lack of raw materials, problems with partners, natural factors).
Mismatch between the goals of the employer and the goals of the employee.
High probability of deterioration in the quality of products/services in pursuit of high volumes. The need for additional control can lead to unnecessary spending and reduce the income item to a minus.
Piecework payment of wages depends solely on the personal qualities of the employee, leaving aside the factor of work in the general team / department / unit. Quite often, these structures have a strong influence on the final result of a person's work.
The race to meet the required volume can lead to improper use of equipment, cause it to break down, violate labor protection requirements, waste raw materials, etc.
Difficulty in establishing reasonable norms per employee. For this process, it is necessary to have a standardizer and special documentation correctly completed at all stages of the work being carried out.
Instability of piecework wages. This requires additional monetary compensation from the employer.
High output by a worker in pursuit of high pay can reduce the actual complexity of the work performed and reduce the rate per unit of output. This moment is sometimes called the "ratchet effect".
The complexity of determining the individual release of products for certain operations (assembly on a conveyor, etc.).

Therefore, before agreeing to a piecework salary or introducing it in your company, you must carefully study all the subtleties of this type of payment.

Scope of application

There are certain conditions in which it is more appropriate to use piecework wages than time wages.

This scope includes the following indicators:

Increasing the volume of activities.
Qualitative indicators of work performed / manufactured goods, which directly depend on the employee.
Stimulation of the contractor in a particular area to increase the amount of work.
Increasing the total quantity of the product produced while maintaining high quality.
Accurate accounting of the volume of products performed by an individual employee.
Operation of industrial facilities in a continuous mode (there are no equipment breakdowns, failures in the supply of raw materials).
The presence of standards justified by a technical specialist.

Varieties

Piecework wages can be made in different ways, depending on the working conditions and the agreement with the employer.

Modern enterprises use the following types of piecework wages.

Direct Deal implies the accrual of earned funds, based on the volume of completed work tasks. This type is characterized by the presence of fixed prices and taking into account the qualifications of the employee. The disadvantage of this variety is the lack of direct interest of the worker in the quality performance of the work of the rest of the team.
piece-rate salary combines remuneration at fixed rates of the transaction and bonuses to the employee for performing work above the norm or for improving the quality of manufactured products. The amount of the premium is set by the company itself. Most often, the indicators for bonuses are the absence of marriage, cost reduction, increase in labor productivity, etc.
chord type consists in the fact that the entire volume of work is taken as a unit for payment and a deadline for their completion is set. An employee's salary is paid only after all work is completed. If a certain deadline is long, then an advance payment is made. If the work is done efficiently and ahead of schedule, employees can receive a bonus. This type is most often used in construction, repairs, etc.
piece-progressive type is a combination of remuneration at fixed rates (when the norm is met) with the addition of increased rates (when performed above the norm). At the same time, the increased tariff differs from the usual one twice. This type of payment is introduced temporarily, for up to 6 months, exclusively at emergency work sites, if there is an urgent order, etc. The use of piece-rate progressive wages is constantly unprofitable due to the rapid growth of workers' wages at a low rate of productivity growth.
Time-piece-work type is used extremely rarely and is a combination of payment per transaction and payment by the hour.

Types of piecework wage system

There are several types of piecework wage system, depending on which system the employer chooses. There are quite tough conditions, on the one hand, which do not allow development, on the other hand, there is nowhere to develop, only the fulfillment of volumes and deadlines is required. And there are also systems where the boss intends to increase not only the quantity, but also the quality of the goods, which is possible only with various rewards and bonuses.

Direct piecework wage system

Under the direct piece rate system, production sets a certain fixed rate for a certain amount of output. The employee will receive exactly as much as he did, say, in two hours or a couple of minutes. Since the work may be different, the time intervals are also different, but the accrual method itself remains the same.

piece-progressive system

With a piece-progressive system of remuneration, a fixed payment is made not just for a certain amount of work, but for the fulfilled norm. Once the border is crossed, anything over it is paid at an increased rate. Thus, this system is designed to motivate workers to increase their productivity by increasing the time spent on labor, or by improving the quality and quantity of products.

Piecework-premium payment system

The difference between piece-bonus and piece-progressive is that it can be paid for overfulfillment of the norm both at an increased rate and in the same amount. The amount of the bonus depends on the financial capabilities of the organization and the opinion of its immediate supervisor. Both systems cannot coexist at the same time, since the premium system is a subspecies of the progressive system.

Indirect piecework

The types of work performed are divided into two types: main and auxiliary, indirect or service. The earnings of executors of auxiliary production directly depend on the amount of earnings paid to workers in the main production. Wages for those working in indirect production are calculated as a percentage of the total income of performers in the main production.

Chord system of remuneration

The chord system is also called complex, since the amount is paid in full only upon reaching the result previously agreed upon by the contract. Prior to this, the worker is also paid a certain amount, the amount of which cannot be lower than the subsistence level, however, it is very different from the final one. For example, the work may consist of the delivery of a construction site. Only after the object is inspected and certified will the worker receive payment for labor, not earlier than that.

Collective piecework payment

Here it is worth clarifying that payment can be made both for personal, individual work, and for the efforts of the entire team as a whole. Collective labor is needed where a good or service cannot be produced by just one person. Thus, the salary is paid to the entire group as a whole, which already independently determines how much to give to each of the participants in the process, depending on the coefficient of its utility.

Didn't find the answer to your question in the article?

As you know: every work must be paid. And it should be paid fairly, in accordance with the complexity, qualifications of the employee, the time spent and the amount of work performed. That is why the following forms of payment are common in our country: time-based and piecework.

As for the time-based form, everything is simple here - this is payment for the time that the employee has worked. The amount payable depends solely on the number of days or hours worked and is usually a constant fixed figure.

The piece-rate form of remuneration is considered more correct and fair. Under this form, the worker is paid for all his work, and therefore he has the opportunity to earn a large amount of money, of course, making efforts for this. The piecework form is the receipt of wages for the number of services rendered, work performed or products produced. As you know, such payment stimulates more productive work and is therefore no less beneficial for the employer. Although it is possible to detect a minus - a piecework form of remuneration can cause a lower quality of work - after all, the employee will try to produce (perform) more, paying less than with time wages to quality.

It is for this that time-based payment can be of two systems: simple and time-bonus. The second encourages to improve the quality of work (manufacturing) - quality improvement is encouraged by bonus payments.

The piecework form of remuneration is appropriate where certain work is performed, which can be calculated in quantitative terms. In such payment, there is such a thing as a price calculated for a certain amount of work or services.

As discussed above, piecework and its systems are considered to be a fairer form of pay for many types of work, as well as a better way to motivate workers. The amount of earnings does not always depend on personal development. As well as time-based, piecework form of payment is divided into systems. The chosen system for piecework payment affects the parameters on which the salary will depend.

A simple system involves accounting for personal development. Its use is very convenient, therefore it is popular and is used where it is possible to keep individual records for each employee.

Indirect piecework is suitable for workers who do not perform work on their own, but provide the work of another. With such a payment system, the amount of earnings depends on how much work (services) the "main" worker will perform.

Piecework premium is no less popular than simple piecework payment. With her, in addition to the salary calculated for the amount of work performed within the approved norm, a bonus is paid.

Under the progressive piecework system, for work performed above the norm, the calculation is carried out at increased prices.

The chord system differs from others in that, with it, prices are not set for each work, but for the complex of works as a whole.

As you can see, different forms of payment are suitable for works of various specifics. Therefore, they all have the right to exist. Which one to choose is up to the employer.

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