This document discusses 5 different methods of wage fixation: 1) Time Rate System, where wages are calculated based on hours or days worked multiplied by an hourly or daily rate. 2) Piece Rate System, where wages are calculated by multiplying the number of units produced by a rate per unit. 3) Balance or Debt Method, where workers are paid the higher of their time rate wages or piece rate earnings each week, with deficits or surpluses carried over to future weeks. 4) Halsey System, where workers are paid their time rate for work completed, plus 50% of their hourly rate for any time saved. 5) Rowan Premium Plan, where a bonus is paid based on time saved multiplied by the ratio of actual

1. METHODS OF WAGE FIXATION
Covered only with basic example
By
METHODS COVERED:
1. TIME RATE SYSTEM
2. PIECE RATE SYSTEM
3. BALANCE OR DEBT
METHOD
4. HALSEY SYSTEM
5. ROWAN PREMIUM PLAN

2. 1) TIME RATE SYSTEM:
FORMULAS:
Wages = Number Of Days Worked X Rate Per Day
Or
Wages = Number Of Hours Worked X Rate Per Hour
Example:
If during 1 week the work man x manufactured 200 units. He received
wages for a guaranteed 44 hours a week at the rate of rupees 1.50 per
hour. Calculate his gross wages using time rate method.
Sol:
Given number of units produced per week = 200units
Wage rate per hour = Rs. 1.50
Wages for guaranteed working hours per week = 44 hours
According to Time Rate System,
Gross wages = Number of working hours per week x Wage rate per
hour
= 44 x 1.50
= Rs. 66/-

3. 2) PIECE RATE SYSTEM:
FORMULA:
Wage = Number of units produced x Rate per unit
EXAMPLE:
If per unit rate Rs. 10/- , If a worker produces 10 units
then find wage of the worker?
Sol:
Wage = 10 x 10 =Rs. 100/-

4. Week Piece wage
(Rs.)
Time Wage
(Rs.)
Credit
(Rs.)
Debit
(Rs.)
Balance
(Rs.)
First 150*2=300 250 50 NIL 50
Second 100*2=200 250 NIL 50 NIL
Third 125*2=250 250 NIL NIL NIL
3) BALANCE OR DEBT METHOD:
Example:
Suppose the time rate is Rs. 250 per week and the piece rate is
Rs. 2 per unit. The wages of a worker, who produces 150, 100,
125 units in 3 weeks, will be calculated as follows.
Sol:
Given Time Rate = Rs. 250/- per week
Piece Rate = Rs. 2/- per unit
Note: In this method of wage calculation the maximum value
(time rate or piece rate which one is higher) is given to the
worker.

5. 4) HALSEY SYSTEM:
EXAMPLE:
Suppose a worker gets his wages @ 60 paisa per hour. He
finished his work in 15 hours for standard hours. Thus he saves 5
hours. How much total wage he gets?
Sol:
Wages for 15 hours @ 60 paisa = Rs. 9.00
Wages for 5 hours (the time worker saves)
@ 50% of the usual hourly rate = Rs. 1.50
= Rs. 10.50
He will get Rs. 10.50 and will also earn something more by
utilizing the time saved i.e. 5 hours.

6. 5) ROWAN PREMIUM PLAN:
FORMULA:
BONUS= Time Saved x (Time Taken / Standard Time or Time
Allotted) x Hourly Rate
EXAMPLE:
If the worker finished the job in 15 hours for standard time of 20
hours and the hourly rate of wage is 60 paise, then how much the
worker will get?
Sol:
Wages for 15 hours @ 0.60 paise per hour = Rs. 9.00
Premium or bonus (5 x (15/20) x 0.60) = Rs. 2.25
Total = Rs. 11.25

7. THANK YOU