This document describes three premium bonus plans: Halsey Premium Plan, Halsey-Weir Plan, and Rowan Premium Plan. Under the Halsey Premium Plan, workers receive a bonus of 50% of time saved based on a standard. The Halsey-Weir Plan provides a bonus of 30% of time saved. The Rowan Plan calculates bonus as a percentage of time saved multiplied by time taken and hourly rate divided by allowed time. Formulas and examples are provided to demonstrate calculations under each plan.

1. PREMIUMBONUS PLANS
• Under this time rate basis of wage payment, additional production beyond
normal level benefits the employers; with piece rate system, the benefit goes
to the employees.
• Bonus are the mid-way in the sense that the savings are shared between
them. These plans include:-
(i) Halsey- premium plan
(ii) Halsey- weir plan
(iii) Rowan plan

2. HALSEY- PREMIUMPLAN
• This plan was originated by F A Halsey ( an American engineer) recognizes
individual efficiency and pays bonus on the basis of time saved. Main features of
this plan are:-
This is a time- saved bonus plan which is ordinarily used when accurate
performance standards have not been established.
Under this plan, it is optional for a workman to work on the premium plan or not.
His day’s wage is assured to him whether he earns a premium or not, provided he
is not so incompetent as to be useless.
The bonus is based on the amount of time saved by the worker.

3. UNDER THIS HALSEY- PREMIUM PLAN THE EARNINGS AND
BONUS OF A WORKER IS COMPUTED AS BELOW:-
• Earnings = (Time taken X Rate + 50% of the Time Saved) X
Rate
• Time Saved = Standard time – Actual time taken
• Bonus = 50% of the Time Saved X Rate

4. EXAMPLE:-
• A worker is paid a basic rate of Rs. 20 per hour. In addition he gets Rs. 2000 per week of 48
hours as dearness allowance. He completes a job with standard time of 60 hours during a
week of 48 hours. Ascertain his earings under halsey plan
Time taken = 48 hours
Rate per hour = 20 per hour
Standard time = 60 hours
Dearness Allowance = 2000 per week
Bonus = T*R + 50%(S-T)R + DA
=48*20+50/100(60-48)20+2000
=960+0.5(12)20+2000
= Rs 3080

5. HALSEY- WEIR PLAN
• This plan is similar to Halsey Premium Plan except that 33.33% of
the time saved is given as premium to worker.
• Formula:-
Bonus= 30% of the Time saved X Hourly rate
• This is very simple, beneficial to efficient worker and causes no
harm to new worker, trainee or slow worker.

6. EXAMPLE:-
• Calculate the total earnings from the following data under Halsey- Weir
plan.
• Standard – time = 10 hours
• Time taken = 8 hours
• Time rate = Rs 2.50 per hour
• Earnings under Halsey- weir plan = T*R+ 30%(S-T)R
= 8*2.50+ 30/100(10-8)2.50
= Rs. 21.5

7. ROWANPREMIUMPLAN
• This plan was introduced by James Rowan in 1901.
• In the rowan plan, the time saved is expressed as a percentage of the time
allowed, and the hourly rate of pay is increased by that percentage so that total
earnings of the worker are the total number of hours multiplied by the increased
hourly wages. The plan aims at ensuring the permanence of the premium rate,
which is often cut by the employer when the workers efficiency increase beyond a
certain limit.
• Formula:-
Bonus= time saved X time taken X hourly rate/ time allowed
Total earnings = time taken X hourly rate + bonus

8. EXAMPLE:-
• From the under mentioned facts, calculate bonus, total earnings, and rate of
earnings per hour under the Rowan plan:
Time allowed = 6 hours
Time taken = 4 hours
Hourly rate = Rs 3
• Bonus = 4/6 * 2* Rs 3 = Rs 4
• Earnings = (4*Rs 3) + Rs 4 [(6-4)/ 6] * 4* Rs 3
• Earnings per hour = Rs 16 / 4 = Rs 4