How To Calculate Piece Rate

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How To Calculate Piece Rate
How To Calculate Piece Rate

Video: How To Calculate Piece Rate

Video: How To Calculate Piece Rate
Video: Calculation of Time Rate, Piece Rate & Guaranteed Time Rate Wages 2024, March
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Piecework wages are wages in which wages are calculated in proportion to units of manufactured products or services rendered. Such payment is an incentive to increase the productivity of workers, and also frees employers from control over the use of working time by employees. The basis of payment is the rate (tariff) per unit of manufactured products (services rendered). There are several types of piecework wages: piece-rate, piece-bonus and indirect piece-rate.

How to calculate piece rate
How to calculate piece rate

Instructions

Step 1

To calculate the wage for piecework wages, you need to multiply the unit rate by the number of units produced by the employee. For example, an organization charges 400 rubles for one door made. The employee produced 22 units of products in May. Thus, 400 rubles / unit * 22 units = 8800 rubles.

Step 2

When calculating the piece-rate bonus, the tariff is also taken as a basis, but the products manufactured in excess of the norm are paid higher. For example, this is the same enterprise, only the employee made 5 more doors in excess of the norm. The head of the enterprise found that over-production was paid one and a half times more. Thus, 400 rubles / unit * 22 units = 8800 rubles. and 300 rubles / unit * 5 units = 1500 rubles. 8,800 rubles + 1,500 rubles = 10,300 rubles

Step 3

When calculating indirect piecework wages, wages are calculated using percentages from the earnings of workers in the division. For example, the workshop made doors worth 60,000 rubles. The shop manager is entitled to 10% of the earnings. Thus, 60,000 rubles * 10% = 6,000 rubles.

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