Types of Labour Systems
There are basically three type of labour payment system which includes Hourly Rate System, Piece work and bonus system.
Hourly Rate
The management identify a per hour work rate for the employee and also an overtime hour rate . The overtime rate is slightly above the normal hour rate. it is important to note that overtime is paid in addition to normal rate and therefore if it is stated that 50% overtime rate it mean that rate would be 150% of normal rate.
Piecework Rate
This rate is based on output. This is sometime is supported with guaranteed minimum payment.
Bonus system
This system is based on the efficiency of the employee.The management described the standard hour of work and actual working hour. The standard hour is the expected hour of unit produced and the actual hour off course the actually hour spent on producing unit.
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