How To Calculate A Piece Rate

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How To Calculate A Piece Rate
How To Calculate A Piece Rate

Video: How To Calculate A Piece Rate

Video: How To Calculate A Piece Rate
Video: How to find Piece Rate- LABOUR REMUNERATION 2024, December
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The piece rate is used to determine the employee's earnings under the piecework wage system. It is a calculated indicator for measuring the amount of remuneration of an employee per unit of product produced or for a performed operation, expressed in monetary terms.

How to calculate a piece rate
How to calculate a piece rate

It is necessary

  • 1. Knowledge of methods for studying the time spent: timing and photography of the working day.
  • 2. Unified tariff and qualification reference book of jobs and professions of workers (ETKS).
  • 3. The tariff scale in force in your industry.

Instructions

Step 1

Determine the grade of the work being performed using the ETKS. Evaluate the nature and complexity of the operation being performed and assign it to a certain tariff category.

Step 2

Using the tariff scale established in your organization or approved in a centralized manner (in the public sector), determine the hourly tariff rate corresponding to this category of work.

Step 3

Determine the rate of time (in hours or minutes) or the rate of production in natural meters (kilograms, meters, pieces, etc.) based on a photograph of a working day or timekeeping.

Step 4

Calculate the piece rate. This can be done in two ways. If in Step 3 you determined the time rate, then the piece rate can be obtained by multiplying the rate by the time rate you specified. If you have determined the production rate, then you will receive the piece rate by dividing the tariff rate (hourly or daily) by the corresponding production rate (hourly or daily).

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