Forms and systems of wages

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2018-03-27 08:36:07

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Salary is the main motivational factors for the staff in any enterprise, and also makes up a significant part of the cost. Therefore, the right choice of forms and systems of remuneration directly affect the results of operations of the company.

In theory, under the form of wages to be paid to understand the profitability of work, which may be hours worked or quantity of the work performed. While the wage system is a set of management tools for calculating payments. It can be the tariff, tariff-free, based on the floating salary or Commission. In practice, however, the forms and systems of wages are often identified with each other, and are used to refer to a General system of organization of payments in the enterprise.

In Addition to the accounting object to determine the pay system is important to have additional incentive, the allocation of earnings among workers. Depending on the listed factors are the main forms and systems of wages. They usually include time-based, piecework and piecework, as well as subtypes: piece-progressive, time-based and piecework-bonus indirect piecework.

Time

The Timed system is characterized in that if the wage at the enterprise is carried out in accordance with the amount of time worked. However, it should be emphasized that for this form also, you must perform certain job functions. The fact of the employee at work does not give him the right to receive a salary. Usually the amount of time worked expressed in hours, however, the company can be selected and any other temporal reference point (for example, days or weeks).

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The time-bonus form allows for incentive payments in the case of achieving above-standard results or on certain occasions as a means of keeping the corporate spirit (for example, on holidays or significant dates). Awards can be one-time or recurring, and can either clearly depend on specific achievements (for example, when exceeding the plan by n percentage), or to determine one-time orders (orders) manual.

Piece

Piecework system of payment is in fact the case that the object of accounting work is the amount of work performed. Simple (or straight) piece-rate is calculated depending on the number of products (services) at the established rates.

Piece-bonus wage allows for the bonus payments, the reason for which can be made certain achievements in work exceeding production quotas, holidays or other important dates.

The Piece-progressive system involves increasing the rates for every exceeding production quotas.

Indirect piecework form is characteristic of remuneration dependent personnel whose salary is determined in fractions of the earnings of regular employees.

Chord system

The gist of it is that the whole team took part in the work of the staff is a single of the payroll, excluding rates or piece rates. The use of this form and the payroll system is rational in the case where the amount of salary money is allocated not for each production unit, and for the entire volume of production (or individual production stage). This fundamental possibility of precise measurement of the volume of work of each employee, and to determine its quality. Often use the so-called coefficients of labor participation.

The Preference of a particular form and system of wages determined by the characteristics of the production process, accountabilities of personnel, motivational function of each system for different types of production.

 


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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