SYSTEMS OF WAGE PAYMENT

     Systems of wage payment 

              Wages are the remunerations for labour which are paid as return for the efforts that the workers put in.

Systems or methods of labour remuneration may be classified into :

I TIME RATE SYSTEMS:

     It is a system of wage payment under which workers are paid on the basis of time spent on jobs, irrespective of the volume of output.

Methods of Time RATE System

a. Time rate at ordinary levels.

b.Higher Time rate at higher efficiency level .

c.Differntial Time rate.

II.PIECE RATE SYSTEMS:

      It is a system of wage payment under which wages are paid on the basis of volume of output, regardless of time taken by workers. 

Methods of piece rate systems

a. Straight piece rate system 

b.Piece rate with guaranteed time rate. 

c.Differntial piece rates.

   It further consists of various schemes like

1. Taylor's Differential piece Rate

2.Merricks Differential piece rate.

3.Gantt Task and BONUS plan.

III.PREMIUM BONUS SYSTEMS:

     It is a system of wage payment under which the workers are assured of the basic time wage and a payment of bonus for the extra efforts made by them to increase their output.The important premium  bonus schemes are:

1.Halsey premium bonus system 

2.Halsey -Weir premium BONUS system

3.Rowan System. 

IV.GROUP BONUS SYSTEMS :

   It is a system in which bonus is calculated on the basis collective production of a group of workers and is distributed among the individual members of the group on some agreed basis.

V. CO PARTNERSHIP :

    Under this system workers are given opportunity to have a share in capital, profit and control of the business in which they are employed. 

VI.PROFIT SHARING SCHEME :

      It is a Scheme under which the workers are entitled to share the profit of the business at an agreed rate, in addition to their wages.

VII.FRINGE BENEFITS( NON MONETARY INCENTIVES):

      Fringe benefits are non monetary benefits given to the employees over and above their gross wages.