Differences
Between Piece Rate System And Time Rate System Of Wage Payment
1. Meaning
Piece
rate system is a method of wage payment to workers based on the quantity of
output they have produced. Time rate system is a method of wage payment to
workers based on time spent by them for the production of output.
2. Nature Of Payment
Piece
rate system pays the workers according to the units of output produced. Time
rate system pays the workers according to the time spent in the factory.
3. Emphasis
Piece
rate system gives emphasis on larger quantity of output. Time rate system
emphasis on better quality of output.
4. Discrimination
Piece
rate system discriminates the workers and pays more wages to efficient and
skilled workers. Time rate system does not discriminate the workers and pays
the same wages to efficient and inefficient workers.
5. Supervision
Piece
rate system requires strict supervision to get the required quality output.
Time rate system requires strict supervision to get required quantity of
output.
6. Determination Of Labor Cost
Piece
rate system helps to fix per unit labor cost in advance. Time rate system does
not help to fix labor cost per unit in advance.
7. Flow Of Production
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