How To Determine The Piece Rate

Table of contents:

How To Determine The Piece Rate
How To Determine The Piece Rate

Video: How To Determine The Piece Rate

Video: How To Determine The Piece Rate
Video: Calculation of Time Rate, Piece Rate & Guaranteed Time Rate Wages 2024, March
Anonim

The piece rate is calculated when employees are transferred from a salary or hourly wage rate to a form of payment from production, which is determined by one unit of product produced per unit of working time. The pricing of a unit of production is carried out by a standardizer based on an analysis of the work of an employee or a team over several months.

How to determine the piece rate
How to determine the piece rate

Necessary

  • - calculation of production;
  • - calculation of the average daily salary.

Instructions

Step 1

To determine the piece rate for a single employee's product, analyze the work over three, six, or twelve months. Add up all products produced during the analysis period, divide by the number of working days in the billing period. You will get the average of the products produced in one day. Divide the original result by the number of working hours, you get the number of products manufactured in one hour.

Step 2

Next, you need to make a quotation of the products. To do this, calculate the employee's average daily salary. Calculate by adding up all the amounts earned for 12 months, divide by 12 and 29, 4 is the average number of working days in a month. You will have a patch in one day.

Step 3

The number of products produced in one day and the salary are two comparable things. For example, if your employee produces 4 parts in one day, then divide the average daily salary by 4, you will get the cost of one part. But such a calculation often leads to the fact that the prices for one unit of production are not entirely correct, therefore, an analysis of the work of several employees working according to the same tariff category or having the same qualifications is applied.

Step 4

To determine the average piece rates, add the number of products produced for the three, six or twelve months of the team of employees, divide by the number of working days during which the products are released. Calculate the average earnings for the analysis period. Divide the average daily salary by the number of products produced in one day. You will receive an average piece rate that will be more accurate.

Step 5

This type of calculation will allow you to pay wages in accordance with the real work of each employee. If someone works slower, accordingly, he will receive less.

Step 6

The transfer to piecework wages stimulates productivity, and the amount of output increases significantly, but at the same time the mechanisms on which it is produced must work smoothly. It is impossible to produce record volumes of products on old equipment.

Recommended: