This document describes the Halsey premium plan, a compensation system originated by an American engineer. The plan recognizes individual efficiency by paying bonuses based on time saved. It benefits both employers and efficient employees. A formula is provided to calculate bonuses as a percentage of standard time saved multiplied by the hourly rate, plus dearness allowance and basic wages. An example calculation is shown for a worker who completes a 48 hour job in the standard 60 hours and earns a total of Rs. 3080.

2. T H I S P L A N W A S O R I G I N A T E D
B Y
F A H A L S E Y ( A N A M E R I C A N
E N G I N E E ) R E C O G N I Z E D
I N D I V I D U A L E F F I C I E N C Y A N D
P A Y S B O N E S O N T H E B A S I C O F
T I M E S A V E .
Halsey premium plan

4. Merits of halsey premium plan
 It is simple to understand.
 Total earnings of eachworker can be easy to calculate.
 Bothemployer and employee get equal benefitof time save.
 This systemnot only benefitsefficient workers but also provides average
workers to get guaranteedminimumwages.
 This systemis basedon time savedand it can reduce the labour cost.

5.  Lack of co-operation among the employee.
 Under this system estimated of standard is very difficult.
 Earnings are reduced at high level of efficient.

6. formula
Bonus= T*R + 50/100( S – T ) R + DA
T -> time taken
R -> rate per hour
S -> standard time
DA -> dearness allowance

7. FOR EXAMPLE

8. Question :
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 the week of 48
hours. Ascertain his earning under halsey plan

9. T -> Time taken – 48 hours
R -> Rate per hour – 20 per hour
S -> Standard time – 60 hour
Da -> Dearness Allowance - 2000 per week
Bonus= T*R + 50/100( S – T ) R + DA
= 48*20+ 50/100(60 – 48) 20+2000
= 960 + 0.5 ( 12 ) 20 + 2000
= Rs.3080