Payroll is a process controlled by the labor code and legislation. At the choice of the employer, several forms are established that can both stimulate the employee and truly reward for the efforts. Labor remuneration, calculated depending on the actual hours worked, is the so-called time wage. This is a form independent of the result of the duties performed. Only a certain period of time is taken into account. Consider the order of its calculation and variety.
In what cases is it used?
Time wage is a way of settling with employees whose work does not directly affect the overall productivity of the enterprise. Obviously, the foreman with the proper motivation will do more work if he is interested in this. The products produced in his shift are proportional to the effort expended.
The work, for example, of a teacher consists of “giving out” hours, that is, lessons actually held. A situation arises in which it is difficult to calculate how much work an employee did: this month everyone learned the material, in the next two-thirds. Yes, and how do you set this up for real? But also it is somehow necessary to evaluate labor. This is where the time wage system comes to the rescue.
Tariff System Elements
In fact, time wages are a value determined by multiplying the tariff rate by the hours worked. The tariff rate is listed as the absolute amount of wages per unit of time. As the initial value, the minimum tariff rate of the first category is used. It is used both for calculating basic wages and for calculating allowances. The totality of the categories of workers and the values of the corresponding coefficients form the tariff grid.
Detailed information on the rates and labor standards that must be met per unit of working time is contained in the tariff and qualification directories. Thus, the wage of a worker directly depends on his rank or category, as well as on the complexity of the duties performed. If work is carried out in harmful or difficult conditions, an increased rate is established.
Unified tariff grids are developed by both the state and commercial enterprises. To comply with the norms and rules of labor legislation, as well as the correctness of the assignment and determination of categories, tariff-qualification requirements and a qualification reference guide have been introduced for different positions and fields. On their basis, the enterprise management issues its tariff schedule or adheres to the state ETS.
The basis for the calculations
The company has a developed tariff system that does not contradict the law. What else is needed in order to calculate wages and what data is allowed to refer to in this case? The main document is a time sheet. It contains detailed information about the hours / days actually worked, as well as passes indicating the reason. The accountant makes calculations only on the basis of the data in the time sheet. Time wage system takes into account each hour worked and day. The need to accrue compensatory and allowance payments, such as overtime, exit on holidays and weekends, sick leave, travel expenses is also reflected in the report card.
Types of time wage
Even within the framework of the same settlement system , disagreements arise with employees. For example, it is more convenient for specialists and management to pay salaries in the form of a salary. For some areas of activity, it is necessary to further motivate staff by adding a bonus part. Someone works on hour shifts, which encourages the use of hourly tariff rates. All this led to an additional delimitation of the general time-based system.
In its pure form, it practically does not occur, but often workers encounter its varieties:
- simple time-based;
- premium time-based;
- time-based with a salary part;
- piecework time;
- time-based with a standardized task.
Each of them is a standard for settlements with employees provided for by the labor code. Consider their characteristics in more detail.
Simple time wage
Based on the name, it is easy to guess that this is the “easiest” and “transparent” labor payment for calculation. Earnings are calculated based on the hours worked. Spent time effectively or not - does not affect the salary received. From month to month, a stable employee receives almost the same amount, which varies slightly due to the different number of days off in a month. Both lazy people and workaholics will be rewarded equally. Is it fair? Most employees and employers are more than happy with such a system. Stability is the main plus of this form of payment. The lack of influence on the employee in the form of “motivation” and “demotivation”, as well as some injustice of equal remuneration regardless of the efforts made, is the main “minus”.
Back to the calculations. Based on the actually worked time and the convenience of its accounting, an hour, a day or a month can be taken as a unit. Hourly, daily, and monthly wages are formed respectively - time wage. This is calculated by the formula: Z p = T s × V f , where:
- T s - tariff rate (hourly or daily).
- In f - actually worked time (number of hours, days).
The application of monthly tariff rates (monthly payment) changes the calculation procedure: = ÷ × , where means the nominal number of working days in a month according to the schedule, whereas the actual days worked are taken for .
Time payment with salary
Unlike a simple time-based form, the salary due to the employee on a monthly basis always remains constant. In order to receive this part of the salary, it is necessary to work out the set number of days in a month and hours in working days. For example, an enterprise operates 5 days a week for 8 hours. After fulfilling the conditions set by the employer, the employee will receive a fixed salary. The size of wages will be the same in each month, regardless of how many working days “fell out” for the period. Recalculation will occur only in the case of passes, going on sick leave or vacation. Moreover, payments will be made not on the basis of tariffs, but on the basis of the monthly salary.
An example of payroll salary
Consider the situation when the employee is assigned a monthly salary, and one of the months was not fully worked out. For the initial data we take the condition: a 40-hour work week with a salary of 25 thousand rubles is set. The first month was worked out completely. The next employee went on paid leave for 14 days. The number of working days in each month is taken as 22. Calculate wages.
What is required of an employee to receive a salary? To be at the workplace the required number of hours and days per month. In the first case, the employee fulfilled his duty and receives the due 25 thousand rubles. What about the second month? The calculation of the time wage with the salary part with incomplete production will look like this:
- 25,000 ÷ 22 × (22 - 14) = 9091 p. (will be a monthly salary for the second month).
Holidays will be calculated on the basis of a salary of 25 thousand rubles, and the employee will receive 9091 rubles in total. plus vacation pay.
Calculation of the daily tariff rate
What would change if the calculation was based on the daily rate? The actual hours worked (in this case 22 days and 8 days) would be multiplied by the established tariff rate. So that the discrepancy in the answers does not bother the reader, we accept it based on the first condition (25,000 ÷ 22 = 1137 p.):
- 22 × 1137 = 25 014 p. - salary for the first month;
- 8 × 1137 = 9096 p. - salary for the second month.
There is a difference in the calculations. In the case of a fixed salary, one way or another, one has to calculate the average daily wage for sick leave or vacation pay, or to make other deductions / allowances. In the case of daily or hourly billing, the unit of earnings is established.
Time payment with bonus
An interesting way for both the employer and the employee to calculate is bonus wages (time-based). It is at the same time guaranteed payments for actually worked days / hours and the motivation to perform their duties is better in order to receive a bonus. An employment contract prescribes the conditions, the observance of which rewards the employee with additional payments in his favor. As a condition may be: the implementation of the sales plan, length of service, 13th salary, results for the quarter / half / 9 months and more. The time-bonus salary is calculated based on the interest rate of the bonus or the specified amount specified in the employment contract.
Mixed form of remuneration
The part-time wage system refers to a mixed payroll system. It combines a fixed payment for the worked hours / days or salary part and remuneration for the volume of production (sales).
Piecework and time wages are combined into one system where it is convenient for the employer. Typically, this method of calculation is used in direct sales, various trade organizations, some manufacturing enterprises. With a mixed form of payment, the employee is more interested in the final result. Usually a fixed percentage of the amount due to the employee is set on the volume of goods sold or manufactured products. So, the piecework is not limited, which allows a person to directly influence the level of his earnings.
Despite the obvious advantages of a mixed system, in reality this form of remuneration often disappoints: the employer deliberately underestimates the salary. Productivity is not always directly dependent on the employee, which ultimately translates into a small income, which is difficult to live on.
Piece-time rate calculation example
As is already known, the accrual of time wages is based on the actually worked time. Consider a situation in which an employee has an hourly rate and 10% of the amount of production per month. We calculate his salary, if it is additionally known that the hourly wage rate for an employee is 120 rubles. In total, 180 hours have been worked out per month. The volume of manufactured products amounted to 124 thousand rubles.
We will calculate the time wage with the piecework:
- Zn = V f × T h = 180 × 120 = 21 600 p.
- 124,000 × 10% = 12,400 p.
- 21 600 + 12400 = 34000 p.
According to the results of the month, the employee will receive 34 thousand rubles.
Payroll calculation with standardized task
This is a kind of time-bonus payment. The scope of work is established, which must be completed within a certain time. In case of compliance with the prescribed task - additional earnings in the form of a fixed percentage of salary or the amount calculated according to tariff coefficients. The time wage form guarantees remuneration for work. The allowance for the implementation and overfulfillment of the plan, as well as the proper quality or saving of energy costs and other things, perfectly stimulate the employee.
Unlike the time-piece form, there is no direct connection with the amount of overfulfillment. The percentage is calculated from the already accrued wages, as a bonus. With the piecework form, the calculations are carried out on the amount of the created turnover.
Time-based wage is a combination of its various forms suitable for a specific situation. Salary based on hours worked - the ability to pay with an employee whose productivity cannot be calculated in cash or in-kind meters. With the help of a bonus or piece part, as well as the establishment of a standardized task, the employer gets the opportunity to motivate the employee to increase efficiency and quality. Wages for time-based wages are a common ground between the interests of the company and the individual employee.