Calculation of piecework wages for workers example. What does piecework wages mean according to the labor code?

home IN Lately There are often cases in which people work and enter into piecework wage agreements. In accordance with certain documents, piecework wages are specified in the contract. How to calculate piecework wages? This question is not difficult if you consider a few points. Please note that on this type

earnings can be affected by several documents. Initially, this is an employment contract, which first of all regulates the amount that you must be paid according to certain standards. Then you can refer to the agreement, which often also states the adopted system for remunerating your work, but the information is only partially specified there. Let’s not forget about the collective agreement, which is concluded at the expense of representatives of the employer and the employee himself. Please note that a collective agreement may not be concluded at all; the law does not provide for it. The exception is cases when one of the parties to the agreement itself expresses a desire to conclude it. Finally, a local regulatory act that sets out all the norms of labor law. If your company has it, then you should definitely familiarize the employee with it.

For calculations, you need to take into account two things: how much work you did, and what piece rate was set.

To determine the piece rate, it is necessary to divide the standardized tariff rate (hourly or daily) by the production rate (hourly or daily).

The output rate is the product you must produce per unit of time, or the number of services you must perform per unit of time. If your company focuses on collective piecework wages, then payment is made according to collective piecework rates. Can play a role here various factors , such as: tariff rate individuals

(by responsibilities, by staff, by standards), the overall plan implementation rate. There are cases when piecework payment occurs, with the expectation of the entire team, in which case the calculation is carried out according to the following formula: your equals the amount of work performed, which is divided by the number of people (the amount is distributed into equal parts). In such situations, the more you complete, the more money you and your fellow workers receive.

Read with this article:

How to calculate piecework wages

The piecework system of remuneration implies the dependence of the salary on the results of work. The indicated results are assessed by indicators such as the number of products made, the volume of work performed, etc. With all this, the employee’s salary per month, which he worked 100%, cannot be lower than the small amount of wages.

You will need it

• — working time sheet;
• — Regulations on bonuses for the organization;
• - staffing table.

For the basis for calculating piecework wages, take the piecework rate - this is the amount of remuneration to be paid to the employee for producing a unit of product or performing a certain operation (in other words, the tariff rate).

Determine the method for calculating piecework earnings. Depending on this, you will receive a salary according to the piece-rate, piece-progressive, indirect piece-rate or piece-piece payment system.

For piecework wages, calculate the salary using the following general formula: ZPsd = RSD x PP. Here: RSD is the piece rate established in the organization for producing a unit of product (or performing a unit of operation), and PP is the practically produced quantity of products (operations performed). This is a flat piece-rate wage.

When calculating wages according to the piece-rate progressive wage system, multiply the volume of production (work, services) by the established piece rate, and multiply the volume of production in excess of the norm by the indicator of the highest price. In other words, everything that falls within the norm is paid at normal prices, everything that is above the norm is paid at inflated prices. Then add up the acquired numbers. For example, piece rate per unit of production: up to 100 units - 8 rubles. from 100 to 300 units - 15 rubles. above 300 units - 20 rubles.

If you are calculating wages using a piecework-bonus system, then in addition to the earnings accrued based on prices, add a bonus. The grounds for calculating bonuses are established by the “Regulations on Bonuses of the Organization.” The size of the bonus is set as a percentage of piecework earnings.

If an employee who has a piece-rate wage system is sent on a business trip, then calculate his average earnings during the time he is on the business trip to pay him. To calculate payment for forced downtime of an employee with piecework wages, use the hourly tariff rate. The remuneration system must be fixed in employment contract.

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How to calculate the price for piecework wages

Depending on the circumstances economic activity expressed by the pursued goal of the head of a business entity, the wages of hired workers can be calculated on a piece-rate or time-based basis. If the result of employees’ activities can be expressed in quantitative terms, then it is convenient to use piecework wages.

When using it in calculating employee remuneration, its size is affected only by the volume of products produced or services provided. A prerequisite is the ability to monitor the quality of the product resulting from the work, as well as express it in quantitative terms.

Salary calculated according to the piecework system

Paybook

All employees whose work is paid according to the piecework system are issued paybooks.

They must be completed by the accountant and the head of the department. The document must reflect information about working conditions and the applied methodology for calculating its payment. The book is kept by the employee and must be submitted to the accounting department of the business entity to make the appropriate entries. Upon completion of work on an assignment, the head of the department must close it by drawing up a special act and making a corresponding entry in the paybook about the results of work that affect the amount of remuneration. Kinds piecework payment

labor

When calculating the amount of piecework wages, the prices established at the enterprise for the production of a certain number of products or services provided in a specific volume are taken into account. Remuneration is calculated in accordance with the information reflected in the work order and the acceptance certificate finished works . These documents are the basis for making an entry in the employee’s pay book in order to determine the amount of his earnings. Under constant production conditions, piece rates do not change. They can be changed when production parameters change, including a change in type finished products

. Piecework wages stimulate growth in the productivity of a business entity, since only the result of activity is subject to payment. This does not take into account the time spent.

Forms of the tariff system of remuneration

• Determination of piece rate
• price criterion, which is a tariff rate established for a specific type of work and applied to an hourly time period;

norms of production of products calculated per unit of time.

Read also: Sample employment contract with piecework wages In some cases, the calculations take into account the duration of the shift.

• If the time standard is established, then the piece rate can be determined by the product of the parameters:
• temporary standards for the manufacture of specific products; hourly.

tariff rate

The piecework system, depending on the method of calculating remuneration, can be expressed in several forms of remuneration, each of which is calculated using a separate method.

How to calculate direct piecework wages

Direct piecework wages The direct piece-rate wage system is applicable when employees are directly paid for the production of products in a specific quantity. It is a basic value that is taken as a standard in situations where employee remuneration is calculated using other methods. The parameters used in the calculation must be regulated by internal documentation of the enterprise.

• The value is determined by the product:
• piecework earnings;

established price.

Calculation of prices when using the piecework-bonus system rational use raw materials and materials, as well as the absence of defective products.

The type used is effective in situations where achieving standard product quality requires careful implementation of all operations of the technological regulations. When calculating the amount of remuneration, indicators of the qualitative and quantitative results of the employee’s activities are taken into account. To determine it, it is necessary to sum up the monetary value calculated using direct piece rates and the bonus established by the internal administrative documentation of the enterprise. The size of the bonus may be changed depending on the presence of omissions in the work.

Read also: What percentage of your salary goes to the pension fund?

Determination of remuneration according to the indirect piecework system

Indirect piecework wages

Indirect piecework wages are relevant for employees performing auxiliary work. Their wages are directly dependent on the performance of their main employees. The rate for calculating the salary is applied based on the indicators of the tariff rate of the main employees served by support staff. The applied methodology motivates the personal interest of workers servicing production processes in the results of their activities.

Read also: Sample application form for a job: example of filling it out

Salary calculated according to the lump sum system

Chord earnings involves the payment of remuneration for the performance of a specific technological operation or completely for complex work performed. Remuneration under such a system is possible not only for full-time employees, but also for employees involved in production on the basis of concluded civil law contracts. Late payment encourages work to be completed using fewer employees in the shortest possible time.

How to calculate the price for piecework wages, taking into account the collective result of the activity

Piecework wages are calculated in accordance with established production standards applied to the complex work of the entire team involved in the production process, if it belongs to the collective category. The collective rate is established not for an individual employee, but for the entire team of the department. The use of the system in calculating remuneration helps to improve when working as a team on one idea. Each employee independently performs the assigned work, in which he is bound by the end result of the complex activities of the entire team.

How to calculate wages using the piecework-progressive system

Piece-progressive wages

The use of the system is effective in conditions of developing production or in situations where there is a specific order for large volumes of products. It encourages employees to exceed the plan. Continuous use of such a payroll calculation scheme is not recommended. This may lead to the loss of a reasonable relationship between wage growth and productivity growth. Piece-progressive wages can be calculated:

• at a stable rate, applied in situations where the result of an employee’s work meets established volume standards;
• at increased prices if the production plan is exceeded.

Application of the tariff-free model

In calculating wages, business entities are increasingly using tariff-free models, which are basic in calculating remuneration for labor. Their use stimulates a team of employees to competently organize their activities, the result of which is the production of products of regulated quality in the required volume. Using this scheme, the employer pays only for the final results of the workers’ activities. The amount of remuneration depends on the assessment of the work of the entire team by the work manager.

Tariff-free remuneration model

This scheme contains elements used in calculating time-based and piece-rate wages. Depending on the contribution to the overall result production activities, each employee is assigned a coefficient corresponding to a certain qualification level. Remuneration for labor is calculated based on the volume of production and regulated prices per unit of production. The salary is calculated taking into account the contribution of each employee, predetermined by the level of qualification.

One of the categories installed system wages are piecework. Its main essence is to take into account the labor costs of the employee himself, which can be expressed, for example, in the number of units of manufactured products, services provided for a certain period, etc.

This system is practiced by many employers, most often in factories, as well as in other organizations involved in the manufacture of certain products. In addition, it can often be found in construction companies.

Important Features

The piecework system appeared quite a long time ago, and is still successfully used in a wide variety of enterprises. However, it will be truly effective if the head of the organization has a full opportunity to regularly record the achievements of all employees. Actual labor costs are determined based on the following indicators:

• current production standards in the organization for a certain period - for example, per hour or full shift;
• exact duration of the working day;
• other available tasks that employees must perform.

The final amount of piecework wages may be influenced by various additional factors, for example, the level of complexity of production tasks, the availability special conditions work, etc.

Main pros and cons

The piecework system has an undoubted advantage - in this way the employer can encourage employees to work faster and complete all assigned tasks. But this also entails a minus: with such a system, the quality of the product itself often suffers, because all the employee’s goals are aimed at achieving a certain number of performance results.

If the enterprise does not have the opportunity to increase production standards, the use of a piece-rate wage system is unlikely to be appropriate and can bring positive results.

All provisions regarding the piecework system must be spelled out in the employment contract or in a separate provision. The tariffs in force within the organization are indicated there, daily norms production, as well as other conditions related to the procedure for calculating wages.

Subtypes of the piecework system

There are quite a lot of subspecies in the piecework system, let’s consider the main ones:

Simple

Such a system can be installed within organizations in which it is quite easy to keep regular records of the output of each employee. The principle here is as simple as possible: it applies to each employee individual approach, the higher the indicators of its production, the greater the regular income.

The calculation will also consist of a simple formula:

T(s) x K, where: T (c) is the tariff in force within the organization for one manufactured unit of product or, for example, for one service provided, K is the number of services or manufactured products.

Let's look at an example:

A post office specialist processed 650 parcels in one working month. The organization has a constant tariff for parcels - 50 rubles per 1 piece. Accordingly, the amount of his piecework salary will be: 650x50=32,500 rubles.

Piece-bonus system

Its main difference is that if results are achieved that exceed the original plan or norm, the employee receives an appropriate bonus. Moreover, its size can be either fixed or expressed as a certain percentage of the total amount of the regular salary.

In this case, the formula used for calculations will look like this:

NW+W, where: SZ is the amount of regular earnings in accordance with the tariffs in force within the organization, Z is the amount of the bonus for exceeding established standards.

Let's look at an example:

Engineer Ivanov works at the plant on a piece-rate wage system, which also involves paying bonuses to employees. The premium amount is fixed - 5,000 rubles. Over the past month, he exceeded the plan for manufactured parts by 100 pieces. The amount of his salary for a given month, based on individual production indicators, amounted to 30,000 rubles. Thus: 30,000+5000 =35,000 rubles - salary amount.

Piece-progressive

This system involves a constant increase or decrease in wages in accordance with the dynamics of each employee’s performance in relation to the work performed by him. For example, if by a certain date of the month an employee shows clear progress, his wage rates will also increase.

The formula for calculations will look like this:

SZ(pss)+SZ(psr), where: SZ(psr) is the amount of earnings in accordance with the current piecework system, SZ(psr) is the amount of wages in accordance with progressive performance indicators.

Turner Petrov works at a factory where there are not only fixed bonuses for exceeding work standards, but also additional bonus payments. Over the past month, Petrov produced 600 parts against the current norm of 400. In addition, he earned additional bonuses in the amount of 4,000 and 2,000 rubles. In this case, the total salary will be: 600x50 (price for one part) = 30,000 rubles - the amount of earnings in accordance with current system wages without bonuses.

30,000 + 4000 + 2000 = 36,000 rubles.

Indirect piecework system

The very name of this system suggests that it is designed for support workers whose salary is directly dependent on the performance of another person assigned to the role of manager. In this case, the calculation formula will look like this:

T(kd.sd.) x OR, where T(kd.sd.) is the tariff in force within the organization for indirect work, OR is the exact amount of work of the auxiliary facility.

Let's look at an example:

At the plant, turner Petrov is assisted by loader Andreev, who delivers manufactured parts to cars approaching the plant. An individual tariff has been established for Andreev - 35 rubles for loading one part. IN last month The turner made 500 of these parts. Therefore, Andreev’s salary will be equal to: 500 x 35 = 17,500 rubles.

Chord

This system involves the signing of a special agreement between the employer and his employee regarding the timing of certain work, as well as the procedure for calculating payment for the completed norm. All these provisions must be drawn up in the form of a separate document, which is presented to one employee or the entire team before any work begins. Each employee must carefully read the provisions of the contract and then sign it. In this case, the calculation formula will look like this:

SZ(sd) + P(ak), where: SZ(sd) - fixed amount of earnings in case successful implementation employee completes the full amount of work within the established deadlines, P(ak) - a bonus that will be paid to the employee if he completes the work completely before the established deadlines.

Let's look at an example:

The builder Vasiliev received from the manager an agreement to carry out reconstruction work on the premises within the next 5 days. The total payment for construction work is 10,000 rubles. At the same time, the manager indicated that, in case of early completion of work by more than one day, he would pay a bonus in the amount of 3,000 rubles. Vasiliev completed all the necessary work in 4 days.

In this case, his salary will be: 10,000 + 3,000 = 13,000 rubles.

As can be seen from the above, the piecework wage system in some cases can indeed be very convenient. It is this that allows you to evaluate the employee’s work as accurately as possible and thank him for exceeding the established indicators. In addition, the piecework system has many varieties, so each employer can choose exactly the option that suits him completely.

However, it should also be remembered that in certain cases it is better not to give preference to the piecework wage system. First of all, it will not be suitable if the enterprise does not have a clear system for recording the performance indicators of each employee. In this case, the employer will certainly have difficulties with correct calculations, which ultimately can lead to numerous claims from employees and even legal disputes.

The piecework form of remuneration has several varieties:

• straight;
• piecework-bonus;
• piecework-progressive;
• indirect piecework;
• chord.

Direct piecework wage system

With a direct piecework system, wages are calculated as follows:

The piece rate is determined by the formula:

The production rate is the amount of products (work, services) that an employee must produce per unit of working time (for example, 10 products per hour). Production standards are determined by the company administration. The hourly (daily) rate is set in the Regulations on remuneration and staffing.

EXAMPLE

The hourly rate of Passive LLC employee Ivanov is 160 rubles/hour.

The production rate is 2 parts per 1 hour.

In April, Ivanov produced 95 parts.

The piece price for one product is:

160 rub. : 2 pcs. = 80 rub./pcs.

Ivanov’s salary for April will be:

80 RUR/pcs. × 95 pcs. = 7600 rub.

Piece-bonus wage system

In a piecework-bonus system, the employee receives bonuses in addition to wages.
They can be set either in fixed amounts or as a percentage of piecework earnings. Salaries are calculated in the same way as under the direct piecework system. Then the premium is added to it and they are paid together.

EXAMPLE

Petrov, a turner of the 3rd category at JSC Aktiv, is paid a piecework bonus. The piece rate for a 3rd category turner is 1000 rubles. for one finished product. According to the Regulations on bonuses of JSC Aktiv, in the absence of defects, employees of the main production are paid a monthly bonus in the amount of 1000 rubles.

In April, Petrov produced 100 products. His basic salary for the month will be:

100 rub./pcs. × 100 pcs. = 10,000 rub.

The total amount of wages accrued to Petrov is equal to:

10,000 rub. + 1000 rub. = 11,000 rub.

Piece-progressive wage system

With this system, piece rates depend on the quantity of products produced over a given period of time (for example, a month). As production increases, piece rates also increase.

EXAMPLE

Aktiv JSC has the following piece rates:

In April, Somov, an employee of Aktiv JSC, produced 120 products.

His salary will be:

(110 pcs. × 100 rub./pc.) + (10 pcs. × 110 rub./pc.) = 12,100 rub.

Indirect piecework wage system

The indirect piecework system is used, as a rule, to pay workers in service and auxiliary industries. In this case, their earnings depend
from the wages of workers in primary production who receive piecework.

The wages of service workers are set as a percentage of the wages of workers in the production they serve. This allows, for example, to interest equipment adjusters and repairers in its reliable operation, since more products will be produced on this equipment as a result.

EXAMPLE

Petrov, an employee of the auxiliary production of Aktiv JSC, was given an indirect piecework wage. Petrov receives 3% of the earnings of workers in the main production.

In November, workers of the main production received a salary in the amount of 258,000 rubles.

Therefore, for November Petrov will receive:

RUB 258,000 × 3% = 7740 rub.

Chord payment

The chord system is used when paying crews. A team consisting of several people is given a task that must be completed within a certain time frame. The team is paid for this. Its amount is divided among the workers of the brigade depending on how much time each of them worked.

The prices for the assignment are determined by the company management in agreement with the team.

EXAMPLE

A team of two mechanics and one service technician repaired the lift in 3 days (24 hours of working time).

The total cost of work is 12,000 rubles. The mechanics worked 18 hours, and the adjuster – 6 hours.

The amount due to the mechanics will be:

12,000 rub. : 24 hours × 18 hours = 9000 rub.

The salary of one mechanic is:

9000 rub. : 2 people = 4500 rub.

The amount due to the adjuster will be:

12,000 rub. : 24 hours × 6 hours = 3000 rub.

Depending on the specifics of the activities of a particular company, it may use other remuneration systems.

Remuneration is financial system regulating monetary relations between employer and employee. According to established legislation, payments must be made on time and in the prescribed amount. Article 129 of the Labor Code of the Russian Federation contains basic information about the rules for making payments.

Tariffs and wages are regulated by various legal acts and contracts. In controversial situations, federal legislation is recognized as dominant and decisions are made in accordance with it. For example, instructions for calculating the tariff rate are contained in Art. 143 Labor Code of the Russian Federation.

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Piece wages

Piece wages – This is one of the types of wages, which involves the dependence of the amount of money on the quantity or volume of work delivered.

The volume of work delivered may be calculated in terms of the number of units produced, the number of tasks completed, or some other measurement. This takes into account the quality of work, the complexity of the task, working conditions and required level qualifications.

Advantages of piecework payment

From the employer's side:

• The employee's interest in performing the maximum amount of work.
• The employee is also responsible for fluctuations in output.
• There is no need to control the work process, since payment is made after the fact and before that it is possible to assess the volume of work and its quality.
• It is believed that if an employee is ready for piecework payment, he knows how to work productively.

From the employee's side:

• Has the opportunity to independently control your earnings and increase it by increasing the volume of work.
• Work on a piecework basis is available even to novice specialists and workers without a reputation.

Disadvantages of piecework wages

From the employer's side:

• Possible reduction in product quality to increase production volumes.
• Often the costs of product quality control are equal to the total costs of control in other production areas.
• Often, workers are in a hurry and violate safety regulations or rules for handling equipment, which leads to injuries and breakdowns.
• Workers don't care much about production costs.
• Psychological factor - the employee does not feel like he belongs to the company team and does not work for overall result, but only for the sake of their enrichment.
• Some types of work are quite difficult to measure in all respects; accordingly, difficulties arise in determining the volume of work performed.
• High staff turnover, which stems from a psychological factor, rarely employees are focused on the prospect of long-term cooperation.
• The need to introduce any compensating payments to smooth out possible fluctuations in earnings.

From the employee's side:

• Earnings are unstable, this fact frightens many workers who do not like risks.
• The employer is not always able to take into account all the factors that influence the result, but often do not depend on the employee.
• The rate of wages may be lowered as output increases, so that the amount of work is not directly proportional to the amount of earnings.

Types of piecework payment

Payment at piece rates is divided into:

1. Direct piecework. It provides a direct relationship between the volumes completed and the amount of earnings. The prices (rate) are fixed, depending mostly on the specifics of the work, its conditions and the qualifications of the employee.

   It is worth noting that when using this type of payment, the employee is least interested in the company’s production growth and improving overall performance indicators. So this type of payment is more suitable for hiring temporary workers.

2. Piece-bonus. In essence, this is the same as direct piecework payment, however, it assumes the presence of incentive payments for work above the plan or high quality manufactured product.
3. Indirect piecework. It helps calculate wages for maintenance personnel involved in maintaining equipment or working places. It is quite difficult to determine the volume and quality of work performed. To calculate wages, you need to divide the rate by the production rate of workers using the equipment being serviced. Bonuses under such a system are usually awarded for trouble-free operation of equipment.
4. Chord. Such a system is designed to complete work with a limited time frame. Then the worker knows the price for the entire volume and knows in what period of time he needs to complete the work. If the task takes a long time to complete, an advance is paid. It is a common practice to pay bonuses for completing work ahead of schedule. It is used mainly in those areas where it is difficult to standardize labor in any other way: during repairs, construction.
5. Piece-progressive. Such a system involves paying for production norms at standard prices, and after exceeding the plan, prices increase. Typically, increased prices do not exceed standard prices by more than 100%. Typically, a progressive piecework system is introduced for a certain period of time in those areas of production where it is necessary maximum performance. This payment method is quite expensive for the employer.

How is piecework wages calculated?

When making calculations, a system of fixed prices per unit of production or fulfillment of an agreed volume is usually used.

Prices directly depend on temporary production standards, tariffs and type of work. To calculate the final price, divide the hourly rate (or daily or standardized) by the production rate for the same period of time. Payments can occur either individually or to a group of workers.

With a direct piece-rate wage system, calculate wages using the formula: Wages = Piece rate per unit of product (type of work) x Number of manufactured products (work performed)

Piece work and time work: what is the difference?

In fact, piecework and time-based payment are polar approaches to remuneration and, accordingly, to its evaluation.
Time-based pay assumes that the employee spends his time in the most efficient way. The employer hopes that the result of the employee’s work will be more valuable than the time purchased.

When using piecework payment, time spent is not recorded. Often, the employer does not know how many hours it took to produce the product and has difficulty determining its cost. The employee bears all responsibility for the effective use of time, and bears the costs associated with irrational time management. Often, workers themselves set piece rates for their work.

Types of remuneration

On this moment The legislation provides for several types of remuneration:

1. Main. It consists of:
   • payment for a specified period of time, payment for a specified amount of labor, subject to the calculation of payments according to the piecework system, as well as time-based or progressive payment;
   • overtime payments for work longer than the established period, for night work, for any work performed in excess of the norm specified in the contract;
   • payments for production downtime that occurred due to reasons beyond the employee’s control;
   • bonus payments, as well as incentives and incentives.
2. Additional. It consists of:
   • payment for time not worked for reasons beyond the employee’s control in cases where such a possibility is provided for in the contract and legislation;
   • vacation deductions;
   • payments to employees on maternity leave and nursing mothers;
   • teen benefits;

In addition to species, classification by form is also used. These include:

Time payment is based on the amount of time which the employee spent at work. Usually the contract specifies the number of working hours.

Time payment may include:

• hourly pay;
• tariffs (daily or hourly);
• a certain norm established by agreement and helping to make a different measurement of time worked.

Time payment consists of:

• simple– assumes that the worker is paid for a certain amount of time that he spent on the work process, regardless of how many and what kind of labor products were produced;
• premium– assumes that in addition to payments based on time worked, bonuses are provided for high quality work.

Piecework payment is divided into several subtypes. Read more about each type of payment below.

Legal norms

Guarantees for timely and complete transfer of payments are established by Article 130 of the Labor Code of the Russian Federation.

According to the law, the state provides guarantees for:

• minimum wage level;
• control of the level of salaries of employees of budgetary institutions;
• size regulation tax deductions for wages;
• introducing restrictions on wages in kind;
• regulation of federal legislation in accordance with the interests of workers;
• exercising state control over the fulfillment of wage obligations;
• holding unscrupulous employers accountable;
• establishing rules regarding the timing and order of payments;
• control over the implementation of legislation.

Wages are compensation for invested labor, and piecework payment is remuneration for a certain result. That is, the better the achievements, the greater the salary you can expect. This is a great way to interest an employee in improving work performance. For many enterprises, piece rates are the only rational way to stimulate workers. We’ll talk about this and other features of piecework wages further.

Types of piecework wages

One of the main issues when applying for a job is discussing amount of remuneration and method of payment. Most Russian enterprises use time-based charging, when an employee serves a certain amount of time within the work schedule. At the end of the reporting period, he is given a salary calculated on the basis of a fixed salary.

In the case of applying piecework standards, “sit out” will not be learned, since the final payment depends on the efforts made and the employee’s skills used to achieve a given result.

Piece wages are one of the types of forms of remuneration employee, in which the amount of final remuneration depends entirely on the efficiency of his production activities.

For any type of piece work special tariffs apply, allowing to take into account their complexity. At the same time, the employee knows for sure that payment will not follow for a large number of low-quality products or work.

Therefore, the worker strives to complete the maximum amount of work possible without losing its quality.

Piece rates may not apply to all employees. For example, an accountant or storekeeper cannot describe their activities in quantitative units, so applying piece rates to them does not make sense.

Russian legislation allows the company to use any form of employee incentives. Piece-rate labor pricing has several varieties that can be applied depending on production goals:

1. Straight. Requires accounting of the quantity of manufactured products. Each product is assessed according to labor intensity, the need for certain experience, knowledge and qualifications.
2. Progressive. For each worker, a production standard is established at clear prices for a certain calendar period of time. In case of production of goods in excess of the established plan, the employee is entitled to a progressive bonus. Typically, tariffs for excess products are twice the standard. This method of stimulating production is temporary in nature to fulfill urgent orders.
3. Premium. When using this system, an employee who meets the established standard, can receive additional remuneration for the absence of defective products, material savings, and increased labor productivity. A bonus is determined for each type of achievement.
4. Chord. This form of payment involves accounting not for a unit of production, but for the total volume. That is, the scope of work and the period for its implementation are determined. The reward is paid only after the entire order is completed. For long-term work, an advance payment is required in accordance with current legislation. If the task is completed efficiently and before the deadline, a bonus may be awarded. This payment system is relevant for construction companies and repair organizations.
5. Indirect. It is used to stimulate service personnel, on the quality of whose work the activities of the main workshops depend. (For example, equipment adjusters, repairmen, suppliers, electricians and other minor employees.) Payment for their labor is directly dependent on the volume of products produced by the main industries.
6. Time-based piecework. It is a combined form. Rarely used in production. During the month, an employee can perform piecework work. In their absence, remain on time-based tariffs.
7. Collective. Used when paying for team work. This form is widespread. A group of workers is given a specific task, the completion of which is estimated at a specific amount. The salary of each brigade member depends on his contribution and is decided by a general vote.

Piece-wage workers are required to comply with the work schedule established by the enterprise, despite the fact that their wages do not depend on the number of hours spent at the workplace.

Sample calculation

Let's try to look at a few examples of calculating piecework wages in order to better understand its essence.

Example 1

Piece-rate labor assessment rates are applied to the worker Petrov. One manufactured product costs 500 rubles. At least 65 units of products must be produced per month. In March, Petrov qualitatively fulfilled the established standard. His monthly remuneration is:

500 * 65 = 32500.00 rubles.

This result is obtained for accrual. After paying all the necessary taxes, a smaller amount will be issued. This is an example of calculating direct piecework wages.

Example 2

In April, Petrov exceeded the established standard by 5 units. Each unit of product above the norm is valued at 750 rubles. His payable salary will be:

500 * 65 = 32500.00 rubles.

750 rubles x 5 units of excess products = 3750.00 rubles

32500.00 + 3750.00 = 36250.00 rubles

This amount will be accrued to Petrov when progressive piece rates are applied.

Example 3

If grading is used when assessing product quality, the following situation may occur. In May, Petrov fulfilled the established standard of 65 units of finished products.

Wherein:

• 5 products are classified as class III products and are valued at 350 rubles per piece;
• 7 products – for class II products at 450 rubles per piece;
• 53 products - first grade products at 500 rubles per piece.

Payroll will be calculated as follows:

(5 * 350) + (7 * 450) + (53 * 500) = 1750 + 3150 + 26500 = 31400.00 rubles

Example 4

Worker Petrov's work is valued at piecework-bonus rates, on the basis of which a bonus is awarded in the amount of 15% of the basic tariff for exceeding the plan by 10% or more. The basic tariff is 500 rubles for each unit of product. According to the standard, 65 products must be completed per month. Ivanov produced 73 units of products in May, which exceeds the plan by 8 units or 12.3%. Fulfilling this condition allows you to accrue a bonus.

Monthly salary is calculated as follows:

500 * 65 = 32500.00 rubles

The premium is equal to:

32500.00 * 15% = 4875.00 rubles

Total earnings are:

32500.00 + 4875.00 = 37375.00 rubles.

Advantages and disadvantages for the employee and the company

Each remuneration system has certain advantages for both the employer and the employee.

When using this form of employee incentives, an enterprise receives the following benefits:

1. Motivating employees to qualitatively increase labor productivity.
2. Remuneration for work depends entirely on the quality and quantity of products produced.
3. Reducing production costs per unit of product.
4. Increasing production profitability by reducing labor intensity.

Employees of the enterprise highlight the following positive aspects from the introduction of piecework rates:

1. The amount of salary depends on your own efforts and efforts.
2. The task received is fully consistent personal experience and professional skills.
3. Some jobs can be obtained without providing a resume or having a bad reputation. Most shining example such work is harvesting.

Despite a large number of positive factors, this system of labor motivation has a large number of disadvantages.

The following negative factors are determined for a piecework employee:

An enterprise must be prepared for the following negative factors when introducing piece-rate pricing:

• deterioration in product quality due to an increase in its quantity;
• introduction of additional departments to record the quantity of products produced and assess their quality, development of new documentary forms of labor accounting;
• Due to the desire to earn more, an employee may overload the equipment, which will cause it to break down. Possibly a violation of labor protection rules, the appearance large quantity defective products, excessive consumption of materials used, electricity and other negative aspects;
• the size of the wage fund is constantly changing depending on production volumes;
• in an effort to increase the quantitative indicators of labor, the employee begins to ignore the full technological cycle of work. As a result, the complexity of the work is reduced. As a result, the unit tariff is reduced. This is called the "ratchet effect";
• When using individual piece rates, the employee becomes fixated on achieving his own results. He separates himself from the team, he is not interested in the future prospects of the organization, the overall work of departments and workshops. The worker is focused on earning income at a given time. Only this indicator keeps him at the enterprise. As a result, such employees often change workplaces.

Each enterprise can choose for itself the most optimal form of remuneration employees. Given the presence of a large number of negative factors, piecework wages can be considered the fairest form of employee motivation. Each type of piece rate tariff has its negative and positive points. Therefore, you cannot use the same type for different workshops and departments. It is difficult to answer which type of piecework payment is better. This is an individual solution for each organization. Perhaps after several failed attempts be able to develop the most rational scheme for monetary motivation of hired employees.

This video contains useful information about types of remuneration.