As you know: every work must be paid. And he must be paid fairly, in accordance with the complexity, qualifications of the employee, time spent and the amount of work performed. That is why the following forms of payment are common in our country: time-based and piece-rate.
As for the time-based form, everything is simple - it is payment for the time that the employee worked. The amount payable depends solely on the number of days or hours worked and, as a rule, is a constant fixed figure.
More correct and fair is the piecework form of remuneration. With this form, the employee is paid all his work, and therefore he has the opportunity to earn a large sum of money, of course, by making efforts for this. The piece- wage form of wages is the receipt of wages for the number of services rendered, work performed or products manufactured. As you know, such a payment stimulates a more productive work and therefore is no less beneficial for the employer. Although it is possible to detect a minus, the piece-rate form of labor remuneration may cause less quality work performance - after all, the employee will try to produce (fulfill) more, paying less than with time-based payment, to quality.
For this, time-based payment can be of two systems: simple and time-bonus. The second stimulates to improve the quality of work (production) - improving quality is encouraged by bonus payments.
A piece-wage form of remuneration is appropriate where certain work is carried out, which can be calculated in quantitative terms. In such payment there is such a thing as a rate calculated for a certain amount of work or service.
As mentioned above, the piece-rate form of remuneration and its systems are considered a fairer form of payment for many types of work, as well as the best way to motivate employees. The amount of earnings does not always depend on personal output. As well as time-based, piece-rate form of payment is divided into systems. The selected system with piece-rate payment affects what parameters the salary will depend on.
• A simple system involves accounting for personal output. Its application is very convenient, therefore it is popular and used where it is possible to keep an individual record for each employee.
• Indirect piecework is suitable for workers who do not perform work on their own, but who provide labor for another. With such a payment system, the amount of earnings depends on how much work (services) the "main" employee will perform.
• Piecework bonus is no less popular than simple piecework payment. With her, in addition to the salary calculated for the amount of work performed within the approved norm, a premium is paid.
• In case of piece-progressive system, for work performed above the norm, the calculation is carried out at higher prices.
• The chord system differs from others in that with it, the rates are set not for each work, but for the complex of works as a whole.
As you can see, various forms of payment are suitable for works of various specifics. Therefore, they all have a right to exist. It is up to the employer to decide which one to choose.