Understanding Time Rate vs. Piece Rate: How Do Workers Actually Get Paid?

Understanding Time Rate and Piece Rate

Can anyone help me with time rate and piece rate? On what basis does the labor get wages?

Thank you.

Regards

There is no hard and fast rule in the P W Act. It totally depends upon the nature of work.

Regards

The salary of an employee depends on their salary rate, i.e., piece rate, daily rate, or monthly base rate. Most companies are adopting a monthly wage rate system. It can be calculated as Monthly wage rate * number of days worked / total number of days in that month. For example, if an employee joins on the 16th of January at a gross salary of 10,000, then their salary will be: 10,000 * 16 / 31 = 5,161 Rs. In the same way, we can calculate others' salaries.

Thanks & Regards,
Priya Bhardwaj
HR Executive

Monthly-Rated Employees

Monthly-rated employees are mainly the staff and supervisors on whom we, the executives, depend to get our work done. They are mostly paid a salary on a monthly basis. In my organization, the payment cycle runs from the 26th to the 25th of each month.

Time-Rated Workers

Time-rated workers are a class of workers who follow the instructions of their supervisors and perform the work as directed. They are paid wages on a daily basis, depending on the days worked.

Piece-Rated Employees

Piece-rated employees are paid based on the amount of work they have completed.