Calculate Remuneration of Employee of an Organisation
Based on the data underneath that you are necessary to calculate the remuneration of all employee like determined with each of the specified methods
i. Hourly rate
ii. Basic piece rate
iii. Individual bonus scheme whereas the employee obtains the bonus in proportion of the time saved to time permitted
|
Name of employee
|
Salmon
|
Roala
|
Pike
|
|
Units produced
|
270
|
200
|
220
|
|
Time allowed in minutes per unit
|
10
|
15
|
12
|
|
Time taken (hours)
|
40
|
38
|
36
|
|
Rate per hour (Kshs)
|
125
|
105
|
120
|
|
Rater per unit (Kshs)
|
20
|
25
|
24
|
Solution
|
|
Salmon
|
Roala
|
Pike
|
|
i. Hourly rate
|
40 x 125
|
38 x 105
|
16 x 120
|
|
|
= 5000
|
= 3990
|
= 4320
|
|
ii. Piece rate
|
Salmon
|
Roala
|
Pike
|
|
Gross wage
|
270 x 20
|
200 x 25
|
220 x 24
|
|
Therefore regular wage
|
= 5,400
|
= 5,000
|
= 5,280
|
|
iii. Bonus scheme
|
Salmon
|
Roala
|
Pike
|
|
Time saved
|
|
|
|
|
Time allowed
|
(270x100)/60
|
(200x15)/60
|
(220 x12)/60
|
|
|
= 45 hours
|
= 50 hours
|
= 44 hours
|
|
Time taken
|
40 hours
|
37 hours
|
36 hours
|
|
|
5 hours
|
12 hours
|
8 hours
|
Bonus time = (Time taken/ Time allowed) x total time saved
|
|
Salmon
|
Roala
|
Pike
|
|
|
(40 / 45) * 5
|
(38 / 50) * 12
|
(36 / 44)*8
|
|
|
= 4.4
|
= 9.12
|
= 6.55
|
|
Bonus Pay
|
4.4x125 = 550
|
9.12x105 = 958
|
6.55x120= 786
|
|
Total pay
|
|
|
|
|
= Gross pay + Bonus
|
5,000 + 550
|
3990 +958
|
4320 + 786
|
|
Using hourly rate
|
= 5550
|
= 5958
|
= 6066
|