Time rate system of remuneration

Question

Describe briefly the term ‘time rate system of remuneration’?

Answer 1

Under Time Rate scheme, a worker is paid at a precise rate on the basis of time attended irrespective of the production accomplished by him. The pay rate might be fixed on daily basis, monthly or weekly basis. This system is helpful due to the following features which are illustrated below:

i) It is helpful for both inefficient and efficient workers.

ii) It gives declaration of minimum wages to the workers.

iii) It is simple to compute

iv) It is easily understood through the workers.

v) If the output can’t be evaluated

vi) If the standard time can’t be fixed.

vii) If the output is away from worker’s control.

viii) If accuracy and quality is of foremost significance.