Straight Time Rate System / Time Rate System
Straight Time Based System :
Under this System the workers are paid on time basis i.e. hours, days, weekly or monthly.
We can find it simply by multiplying the time worked (it includes normal idle time) by the rate of time.
Compensation is paid according to the presence of employee on workspace but not according to production done by the employee.
Wages = Time worked × Rate of the Time
This Method Is Suitable for :-
- Employees whose services cannot be directly measured. For example: general helpers, supervisors, etc.
- Employees engaged in highly skilled jobs.
- Where pace of output is independent of the operator, e.g automatic plants, i.e. individual donot have control over production.
Comments
Post a Comment