In the wage system, piecework rates are determined. Piece-bonus wage system

22.09.2019

Piece wages widespread in industries, construction, transport and communications, consumer services, where standards for labor costs and wages have been developed by type of work and it is possible to accurately calculate the volume of products produced and services provided. Such a payment system establishes a direct connection between wages and the final results of production and promotes effective use labor and financial resources.

Piece wages are used, as a rule, in jobs with a high proportion of manual labor, where labor can be rationed (time and output standards can be determined with sufficient accuracy). Well-established rationing and accurate accounting of output, as well as control over product quality, are the most important conditions for the use of piecework wages.

The main document for planning, accounting and remuneration of workers (team, unit, worker) is piecework outfit. It contains a list, composition and deadline for completing work, indicating production conditions, the full and actual volume of work performed, time standards and prices per unit of work, as well as their entire volume. On the reverse side of the piece work order is a time sheet for hours worked. The piece work order is drawn up by the foreman with the participation of the standard setter and issued to the workers before starting work. After completion and acceptance of the work, the piecework order is closed, the standard time and the amount of wages are calculated in it. Then the piecework is submitted to the accounting department for payroll calculation.

Types of piecework wages are direct individual piecework, piecework-bonus, piecework-progressive, collective (brigade) piecework, indirect piecework and chord-based.

At direct individual piecework wages wage worker ( 3 ) depends directly on the number of products produced or operations performed and is determined by the formula:

Where R- piece rate per unit of product or work, UAH; Npr.f.- the actual quantity of products produced or work performed for a specified period.

R) is calculated using the formula:

Or ,

Where St- tariff rate per category per shift, UAH; TV- production rate, units; St.h.- hourly tariff rate, UAH; Nv.r.- standard time, hours

The piece rate is determined based on the tariff rate of the job, and not on the tariff rate of the category assigned to the worker.

At piecework-bonus wages worker's earnings ( WHSD) at basic piece rates, supplemented by special bonuses; it can be calculated using the formula:

Where Kp.r.- bonus coefficient for high-quality performance of shift assignments, %.

The size of the bonus is usually set as a percentage of earnings determined at piece rates, depending on the characteristics of production and the nature of the work performed. Bonuses increase the worker's interest in improving the quantitative and qualitative indicators of production.
IN last years the work of an increasing number of workers is paid according to the piecework-bonus system. Distinguish individual And collective piecework-bonus wages.

is usually introduced in critical areas that are a “bottleneck”, with a special need for material incentives for workers to increase output. Under this system, the worker’s earnings for fulfilling the production quota are determined as with direct piecework payment. When overfulfilled established norm surcharges to the basic piece rate are progressively increasing. Progressive additional payments are awarded based on the results of monthly work. When calculating wages, only high-quality products are taken into account.

With piecework-progressive wages, wages ( Zsd.prog.) is calculated using the formula:

Where Ku- coefficient of increase in piece rate when shift assignments are exceeded, %; Np.p.- planned output (shift task), units.

The calculation of piece-rate progressive payment is complex and requires a lot of computational work. The disadvantage of this system is that the worker's earnings increase faster than labor productivity.

Currently, only a small number of workers are paid under this system.

Recently it has been widely used collective piecework (team) wages, and in certain industries (coal, mining, forestry) it has become the main one. For example, at metallurgical plants, the majority of workers in the main production departments are paid according to this system. The expansion of the use of this form of remuneration is associated with the development of mechanization production processes, the introduction of the latest modern units and machines, the development of conveyor production. In this case, the wages of each individual employee are calculated taking into account the volume of final products (work) produced by the team; the number of hours worked by an individual employee; his qualifications.

The main advantage of collective piecework wages is that it interests all workers of the team in final results work, contributes to the development of their sense of collective responsibility for the assigned work, mutual assistance in work.

Indirect piecework wages used mainly to pay auxiliary workers. Under this system, the size of a worker’s wages depends on the output at the production site he serves.

In the coal industry, indirect piecework wages are used for working faces, in metallurgy - for mechanics on duty servicing metallurgical units, in mechanical engineering - for service technicians, in the textile industry - for weft drum loaders, tape workers and other workers.
The proportion of workers paid under this system is relatively small.

Chord payment is a logical continuation of the direct piecework system in relation to enlarged types of work (for example, the manufacture of a product in industry, a set of works or part of a building in construction). This system is most effective in a brigade form of labor organization. A piece rate is set for all work, defining the deadline for its completion (sometimes without limiting the duration of the working day).

Accord payment is introduced for separate groups workers with an increase in their material interest in increasing labor productivity and reducing work completion time. The amount of the lump sum payment is determined on the basis of the current standards of time (production) and prices, and in their absence - in accordance with the standards and prices for similar work. The main document in planning and accounting for wages is a piece work order, which is similar to a piece work order, and the regulatory framework consists of calculations of labor costs and wages for an enlarged type of work. A bonus may be accrued for the amount of earnings on a piecework basis, which should not exceed the maximum amount established for this type of work in the Regulations on bonuses for workers of the enterprise. The size of the bonus is determined depending on the reduction in the deadline for completing the chord task.

Wages (including bonuses) are distributed among workers in proportion to the time worked in accordance with the assigned ranks.

Workers eliminate deficiencies (defects) made during the execution of chord work without additional payment.

The effectiveness of the chord system is determined by the reduction in the amount of work of standard setters to draw up and close work orders, the simplification of the functions of the foreman, who issues the completed amount of work to the brigade and accepts practically finished products, as well as reducing the time spent by accountants and economists. In addition, the chord system supports collectivism in the team, helps reduce production costs, and save material and energy resources.

The advantage of piecework wages there is a direct connection between performance results and remuneration amounts. For an organization, the use of this system means that one of the most important components of its costs is the cost of labor- become a variable value, i.e. they change depending on production volumes, and this reduces the level of financial risk.

The piecework form of payment stimulates the employee to increase the volume of products he produces. If the company is interested in this, piecework wages - the best remedy to achieve the set goal. In addition, this payment method is understandable to employees and is valued by them for its objectivity.

At the same time, the piecework system, for all its external simplicity and attractiveness, has flaws.

As the history of the development of industrial production shows, quality and piecework payment are practically incompatible. Once a worker begins to receive compensation per unit of output, he focuses solely on quantity. To achieve the required level of quality, management has to create technical control departments, which significantly increase costs, but, as a rule, do not achieve the goal.

The use of piecework often leads to a tense situation in the organization, since pieceworkers put strong pressure on the foremen and foremen involved in the acceptance of manufactured products. Therefore, the piecework system is expensive, as it contains additional direct and indirect costs.

There are known cases of deliberate limitation of labor productivity by piece workers seeking higher prices.

In addition, the piece-rate system links an employee’s earnings solely with his individual results, leaving the work of the unit and the organization as a whole without attention, which negatively affects collective motivation and group work.

The scope of application of piecework wages is limited to types of activities in which a person works independently and produces homogeneous products. In modern highly mechanized production, which uses intellectual rather than physical labor, there are very few such areas.

Tatiana Gezha,
chief expert consultantClient training department of TLS-PRAVO LLC

The Labor Code of the Russian Federation mentions two forms of remuneration: time-based and piece-rate.
What are their main differences and is it possible to establish a remuneration system arbitrarily?

In accordance with Art. 129 of the Labor Code of the Russian Federation, wages are remuneration for work depending on the qualifications of the employee, the complexity, quantity, quality and conditions of the work performed, as well as compensation payments (additional payments and allowances of a compensatory nature, including for work in conditions deviating from normal, work in special climatic conditions and in territories exposed to radioactive contamination, other compensation payments) and incentive payments (additional payments and incentive allowances, bonuses and other incentive payments). Salary based on Art. 135 of the Labor Code of the Russian Federation is established for the employee by an employment contract in accordance with the remuneration systems in force for a given employer.
At the same time, remuneration systems are not regulated by labor legislation.
But the same art. 135 it is determined that remuneration systems are established by collective agreements, agreements, local regulations in accordance with labor legislation and other regulatory legal acts containing labor law standards.

Two remuneration systems

Time-based form of remuneration- remuneration is determined by the actual time worked and the amount of the tariff rate or salary.
Time-based wages are usually of two types.

Simple time-based. An employee is given a salary or tariff rate for a specific standard of working time. For example: the salary for normal working hours, the monthly norm, is set for an employee in the amount of 30,000 rubles.
The employee worked 15 days in November 2017. Total employee will receive: 30,000 / 21 workers. day (monthly norm for normal duration) x 15 = 21,429 rubles.
Premium time-based. The employee is given a salary for the monthly standard of working time in the amount of 30,000 rubles. + bonus in the amount of 10% from each concluded transaction. In November 2017, the employee worked the full monthly norm -
21 working days and concluded two transactions for 15,000 rubles. and 75,000 rub. The employee’s salary for November 2017 will be: RUB 30,000. + 15,000 rub. + 7500 rub. Total: 52,500 rub.

Piecework form of remuneration- remuneration for the volume of products performed (services provided).
The piecework form of remuneration can also be divided into several types.
Direct piecework. The employee is given a piece rate of 500 rubles. for the manufactured part. In November 2017, the employee manufactured 124 parts. The total salary was: 124 x 500 rubles. = 62,000 rub.
Piece-premium. The employee is given a piece rate of 500 rubles. for a manufactured part upon reaching the plan of 120 parts per month + if this plan is exceeded, 20% of the achieved indicators. For example: an employee produced 150 parts in November 2017.
The salary will be: 150 x 500 rubles. + 20% of the cost of 30 parts completed above the plan. Total: (150 x 500) + 20% of (30 x 500) = 75,000 + 3,000 = 78,000 rub.
Piece-progressive. The employee is given a piece rate of 500 rubles. for a manufactured part upon reaching the target of 120 parts per month. When completing parts beyond the plan, the employee is set a piece rate of 650 rubles. for the detail. For example: an employee produced 150 parts in November 2017. The total salary is: 120 x 500 + 30 x 650 = 79,500 rubles.
Piece-regressive. It is used in cases where it is inappropriate to increase production volumes beyond the established plan, for example, due to the inability to quickly sell above-plan products.
Indirect piecework. As a rule, it is installed for auxiliary workers who are engaged in repairs and adjustments of equipment, and other types of maintenance for main workers. Typically, a support worker's salary is set as a percentage of the main worker's salary.
Chord (piece chord). As a rule, with this system the amount of payment is set not for an individual unit of production, but, for example, for a certain amount of work.

Each of these systems can be either individual or collective (team), depending on how the worker’s earnings are determined, based on individual or group indicators.

In what types of activities is it best to use piecework wages?

Today, many organizations choose piecework wages instead of time wages..

As a rule, this happens in those activities in which the employer is interested in increasing labor productivity. And it is more profitable for the employee to produce more products and receive higher wages for it.

As a rule, the piecework form of payment is used where it is possible to set production standards, time for completing production tasks and, ultimately, record quantitative indicators of the result of labor.

It is not possible for all workers to establish a piece-rate form of remuneration. It is impossible to establish a piece-rate form of payment, for example, for employees of the administrative and economic apparatus, accountants or the same personnel officers, where it is impossible to establish and calculate any specific indicators.

In practice, it is with the piecework form of remuneration that many questions often arise.

Which remuneration system is more profitable to use when recording working hours?

Of course, the choice of remuneration system is the prerogative of the employer.
However, if the company has established a time-based wage system and summarized recording of working hours with an accounting period longer than a month, then it is more logical to install an hourly time-based wage system.
How many hours the employee worked according to the work schedule this month is what he will receive.
But at the same time, it is necessary to remember that work schedules are drawn up based on the established norm of working time for the accounting period, so that at the end of the accounting period the employee does not have overtime or shortcomings according to the schedule.

Additional payment up to minimum size wages with piecework-bonus wages

In accordance with Part 3 of Art. 133 of the Labor Code of the Russian Federation, the monthly salary of an employee who has fully worked the standard working hours during this period and fulfilled labor standards (labor duties) cannot be lower than the minimum wage.
The employer, when approving the piecework-bonus form of remuneration, must calculate prices in such a way that when working the standard working hours and developing the standard production, the employee’s salary is not lower than the minimum wage in the region.
In case of failure to comply with labor standards, failure to fulfill labor (official) duties through the fault of the employee, payment of the standardized part of the salary is made in accordance with the volume of work performed in accordance with Part 3 of Art. 155 of the Labor Code of the Russian Federation and in this case there is no need to pay extra up to the minimum wage.

A day off or a holiday for piecework wages

As a rule, the remuneration of piece workers depends on the amount of work they perform (Part 2 of Article 150 of the Labor Code of the Russian Federation). And if there are non-working people this month holidays, piece workers cannot work these days. This means that in this case they lose part of their wages.
Therefore, if piece workers were not involved in work on weekends or holidays, then in accordance with Part 3 of Art. 112 of the Labor Code of the Russian Federation they are entitled to additional remuneration.
The amount and procedure for payment of the specified remuneration are determined by the collective agreement, agreements, local regulations adopted taking into account the opinion of the elected body of the primary trade union organization, employment contract. Amounts of expenses for the payment of additional remuneration for non-working holidays are included in the full amount of labor costs.
The absence of a local act that determines the procedure for paying additional remuneration may be recognized by a labor inspector as a violation of labor legislation in accordance with Part 1 of Art. 5.21 Code of Administrative Offenses of the Russian Federation.
The amount of remuneration is determined by the employer and can be set:
or in a fixed amount;
or calculated based on average earnings, production standards and average prices, minimum wage.

The employee receives direct piecework wages. As of June 2017, according to the regime of an 8-hour working day in a five-day working week, an employee was given a plan of 1 part per hour costing 300 rubles. for the detail. A worker must produce 8 parts per day.
On June 12, the employee has a day off according to the schedule, which is also a holiday. If the employee was not involved in work on this day, the employer must pay him remuneration for this day.
For example, in accordance with the regulations on wages, additional payment for such days is made based on the amount of wages for meeting production standards.
The cost of the reward in this case will be: 8 parts per day x 300 rubles. = 2,400 rub.
If the employee has a shift work schedule and summarized accounting, then this day may turn out to be a working day for him according to his schedule.
In this case, the employee is not entitled to additional remuneration, but in accordance with Art. 153 of the Labor Code of the Russian Federation, work on a day off or a non-working holiday is paid to piece workers at no less than double piece rates.
And since this day is a scheduled work day for the employee, he is entitled to increased pay.
In this case, he does not have the right to be granted another day of rest, since the work was carried out within the limits of the monthly working time standard (“Recommendations Federal service on labor and employment on issues of compliance with labor legislation regulating the procedure for providing employees with non-working holidays").

Regional holidays (non-working days off)

In Art. 153 of the Labor Code of the Russian Federation does not indicate that double payment is made only for holidays in accordance with Art. 112 Labor Code of the Russian Federation.
After all, the constituent entities of the Russian Federation also have their own national holidays. So, for example, in accordance with Art. 1 of the Law of the Republic of Tatarstan dated February 19, 1992 No. 1448-XII “On holidays and memorable dates Republic of Tatarstan" in the Republic of Tatarstan the following non-working holidays are established:
- Day of the Republic of Tatarstan - August 30;
- Constitution Day of the Republic of Tatarstan - November 6;
- Eid al Adha;
- Kurban Bayram.
Therefore, if a piecework worker works according to his work schedule on this day, he is entitled to double payment of the production rate. If he does not work that day, he is entitled to additional remuneration.
At the same time, it must also be remembered that general rule, determined by Part 1 of Art. 95 of the Labor Code of the Russian Federation, the duration of the working day or shift immediately preceding a non-working holiday, in relation to national holidays including decreasing by one hour.

Payment of wages to the pieceworker for the first half of the month

According to the Ministry of Labor of the Russian Federation, set out in Letter No. 14-1/B-725 of the Ministry of Labor of Russia dated August 10, 2017, an employee has the right to receive wages for the first half of the month in proportion to the time worked.
When determining the amount of wage payment for the first half of the month, it is necessary to take into account the employee’s salary (tariff rate) for the time worked, as well as bonuses for the time worked, the calculation of which does not depend on the assessment of the results of work for the month as a whole, as well as on the fulfillment of the monthly working time norm and labor standards ( labor responsibilities) (for example, compensation for work at night in accordance with Article 154 of the Labor Code of the Russian Federation, allowances for combining positions, for professional skills, for work experience, and others).
As for incentive payments accrued based on the results of meeting performance indicators (assessed based on the results of work for the month), as well as compensation payments, the calculation of which depends on the fulfillment of the monthly working time standard and is possible only at the end of the month (for example, for overtime work , for work on weekends and non-working holidays in accordance with Articles 152, 153 of the Labor Code of the Russian Federation), the specified payments are made upon the final calculation and payment of wages for the month.
A reduction in wages for the first half of the month when calculating may be considered as discrimination in the labor sphere, deterioration labor rights workers.
Based on this Letter, we can conclude that if for the first half of the month it is possible to calculate wages based on the standard working hours worked by the employee and the fulfilled standard of production, then for the first half of the month the employee needs to be paid wages in fact, and not the so-called advance .

The employee receives direct piecework wages. As of November 2017, according to the eight-hour working day of a five-day working week, the employee was given a plan of 1 part per hour costing 300 rubles. for the detail.
A worker must produce 8 parts per day. In the first half of November, the employee worked 10 working days and produced 80 parts. In accordance with the Internal Rules labor regulations The payroll days in the organization are the 20th of the current month and the 5th of the month following the billing month.
This means that on the 20th the employee should receive 24,000 rubles.

Establishment of a wage system (time-based + piecework)

In practice, the question often arises: is it possible to establish a remuneration system in which an employee’s salary will consist of time wages (hourly wage rate) and a piece part (for example, for the volume of work performed)?
The establishment of such a remuneration system in itself is not a violation of labor legislation (see: decision of the Solntsevsky District Court of Moscow dated October 13, 2014 in case No. 2-2446/2014).
Thus, in the decision under consideration, the establishment of such a remuneration system was considered acceptable.
According to section 7 “Price wages” of the Regulations on wages for members of the flight and cabin crew of transport aviation aircraft of UTair Airlines, approved by order general director No. dated DD.MM.YYYY., remuneration of flight and cabin crew members consists of two parts: time-based (salary) and piecework (payment of flight and cabin crew members for performing flight work).
In turn, piecework (per-flight wages for flight and cabin crew members) consists of two parts: wages for the flight during the day (fixed part) and additional pay for the flight at night (variable part).
Based on the above, we can conclude that establishing a remuneration system is the right of the employer. And only the employer himself can decide which system suits him best.

One of the available and sufficient effective ways employee remuneration for work done is piecework wages - according to the Labor Code of the Russian Federation, such an option for formalizing relationships is legal. The use of piecework payment allows one to quite effectively solve many organizational and personnel issues and can be equally beneficial for both the employer and the workers themselves. However, like any other form of organization of the payroll mechanism, the piecework wage system has its own certain advantages and disadvantages.

Piecework wages - what is it?

By piecework wages, first of all, we mean such a mechanism for implementing the calculation of wages to employees, in which they receive it in direct dependence and with direct reference to the volume of work duties performed. That is, in terms of a unit of products produced or provided to clients and contractors of the organization, or the organization of services itself. This payment mechanism has deep historical roots and is very common throughout the world.

Legal regulation of the application of the piecework wage system in Russia is ensured by the provisions Labor Code RF not fully. In particular, this labor regime itself has practically no specialized regulation. It is mentioned only in the context of the following articles of the Labor Code of the Russian Federation:

Article 150. Its principles lay down the obligation of the employer to pay employees on a piece-rate system in accordance with their category, and not with the rates for less qualified labor when performing it.
Article 153. This article establishes a special regime for payment of piecework wages on weekends or holidays in the form of at least doubling the established rates.
Article 271. It regulates the procedure for piecework payment for minor employees when their working hours are shortened and allows for the establishment of both standard piecework rates and increased rates for such workers.

The pure format of piecework wages in Russia is quite difficult to implement due to the requirements established by law to ensure mandatory compliance of wages with the established minimum wage.

At the same time, it is enough to take into account the minimum wage indicators in the production standards established at the enterprise, and if they are not observed, the employer will have the opportunity to fire the worker who cannot cope with his duties. Or, many entrepreneurs establish piece-rate wage standards, when the minimum wage is paid to employees in full, and piece rates apply to products after production standards reach the minimum wage level.

Otherwise, the piecework payment system, taking into account the above-mentioned aspects of its regulation, is acceptable for use in business. In fact, piecework wages are considered a type of tariff wage. That is, it is established in accordance with the recommendations and standards of national reference books for workers. However, certain elements and principles of piecework may also be present in the case of tariff-free system or a point system.

Piece payment does not necessarily have to provide for the provision by an employee of only one type of service or the production of one type of goods. An enterprise can establish a wide list tariff rates for various options for goods and services, both with and without reference to certain positions.

Types of piecework wages

The piecework form of remuneration itself provides for the payment of remuneration in accordance with the volume of work performed or goods manufactured. However, it, in turn, has many possible forms and types of implementation, allowing the employer to maximize the efficiency of employees’ work activities and achieve optimal results from managing economic activity. The main types of piecework wages include the following forms:

Direct piecework or simple piecework. This option for calculating wages to employees is the simplest and involves simply multiplying the number of units of manufactured products or the facts of the provision of single services by established rates. This method payroll is the simplest from an accounting point of view and most closely corresponds to the principles of classical economic theory, allowing you to simplify possible calculations and marketing research. However, in comparison with other options for piecework wages, it also has a number of disadvantages.
Piece-bonus wage system. This system provides for the possibility of awarding bonuses to employees for exceeding production standards established at the enterprise, as well as the widespread use of additional tools to motivate employees. It is the most common in practice, since in fact most organizations in one form or another use a system of bonuses and additional remuneration, for example, in a year-end format. In this case, the bonus system may provide for both the payment of bonuses in a certain percentage of earnings, and the payment of fixed amounts or the provision of certain goods or services in kind.
This system is a type of piecework wages used when there is a need to perform a strict amount of work within a certain period, but there is no possibility or advisability of paying for single actions. Most often used in the construction or repair industry, as well as when fulfilling urgent orders. The lump sum bonus system also implies the possibility of using bonus mechanisms for workers, which is primarily provided for reducing the originally established deadlines.
Piece-time wages. Its mechanisms provide for the combination of both hourly payment or another time-based wage system, and a piece-rate wage calculation mechanism. Most often, it is provided to provide employees with a certain level of earnings during a period of downtime or in the presence of a wide range of work duties, including both the performance of certain standardized and measurable actions, and work, the nature of which does not imply the possibility of calculating the expended efforts and labor of the employee.
Piece-progressive system. This system provides for the use of different rates for the performance of basic job duties. In particular, it is expected that the piece rate will be increased for services rendered or goods produced, if they exceed the established production standards. The increase is usually set up to doubling the rate. Such a system may also have a regressive side - if production standards are not fully observed, the rate for an individual action may be lowered, but only to the minimum wage limit in terms of monthly income. From the point of view of organizational efficiency, such a system demonstrates itself most rationally on a temporary basis - when it is necessary to fulfill urgent orders or eliminate the negative consequences of any emergency situation in the organization.
Indirect piecework. This system is used in the context of ensuring wages for employees of departments or organizations that provide various related services and support the activities of production units directly. In this situation, a percentage link between the efficiency of certain employees and the efficiency of the departments and divisions they serve, which are paid on a piece-rate basis, is ensured.

In general, the existing range of possible forms of piecework wages allows the employer to carefully consider the existing system of calculating wages for workers and, if necessary, maximize the efficiency of business activities. At the same time, the employer has the right to change working conditions or use mixed elements of payment, using certain principles of one or another payroll format. But changes in working conditions must always be accompanied by compliance with established procedural procedures.

Also, it is allowed to subdivide the types and forms of piecework payment by the number of participants being assessed. Thus, piecework payment can be individual and calculated depending on the efforts of each individual employee.

Or, at some enterprises, piece-rate payment principles may relate to the financing of direct departments and divisions, within which other mechanisms for calculating and calculating wages may take place.

Advantages and disadvantages of piecework wages The piecework wage system, like any other, has a number of pros and cons.

But still, despite the above-mentioned advantages, the range of use of pure piecework payment mechanisms in the world is decreasing every year. This is due to the expansion of the service sector, in which the possibility of effectively assessing quantitative indicators is quite low or even zero. The fact that there are certain critical shortcomings of the piecework payment system itself also has an impact. The obvious disadvantages of piecework payment include:

Low level of team activity. The piecework wage system, applied to each individual employee, provides virtually no incentive teamwork– every worker in this case is interested only in achieving high personal results. However, the employer can mitigate this disadvantage using methods such as various bonus systems, or by resorting to the use of a piece-rate system in relation to individual departments, teams or other groups of employees.
Difficulty in accounting for labor and the influence of additional factors. First of all, with large volumes of production or the activity of the enterprise as a whole, there is a need for an effective system for recording the work done by each employee and their departments, which in any case requires the mobilization of additional resources. In addition, the piecework system in itself does not motivate the employer to take into account indirect factors affecting the efficiency of employees, which may decrease due to various external and internal factors, such as equipment breakdown, weather conditions, market fluctuations and other possible influences.
High staff turnover. Due to the fact that each employee is interested primarily in his own financial well-being in a specific period of time, staff turnover increases, since employees lack the motivation to work long-term. Introduction of a more complex tariff system with additional surcharges for seniority, applied to piecework tariffs, can partially offset this disadvantage.
Processing risks. In small enterprises, a piece-rate wage system can lead to situations that cause overwork - when the volumes of goods produced and, less often, services provided, ultimately do not have the opportunity to be realized by the organization and lead to a real increase in profits, but on the contrary - increase losses due to the need to pay actual work performed by workers.
Reduced product quality and greater wear and tear on equipment. Piece workers are primarily interested in increasing their own measurable quantitative indicators, and not in the quality of products. Implementing quality control can help get rid of this deficiency, however, the costs of its implementation and integration may ultimately turn out to be higher than the justified economic benefits from the piecework system as a whole. Also, with a piecework payment system, the depreciation of means of production is consistently higher due to their increased and often careless operation. This factor can be leveled out during the work of piece workers with the help of the requirement to use own equipment, which, however, cannot be realized in many types of production.
Inapplicability in certain areas of activity. While standard salary or time-based payment systems can be used in almost any field of activity - both in production and in the provision of services, the work of many positions cannot be effectively controlled and provided with piecework payment for services. For example, piecework payment for the work of full-time repair specialists actually motivates them to sabotage in order to carry out more repair work and, accordingly, increase wages. It is almost impossible to quantify the work efficiency of, for example, a marketer or a financial analyst using piecework payment tools, and even if such a possibility exists, the objectivity of the positive impact of piecework payment will be minimal.
Instability. Despite high level motivation of workers, piecework wages can also reduce its indicators, as well as increase the level of psychological discomfort of workers, which ultimately can affect the overall effectiveness of their work activities. Thus, with piecework wages, workers may not pay due attention to rest and compliance with safety standards, trying to get as much income as possible. In addition, there will be a lack of stability in their work, which will also increase the level of discomfort.

Considering the list of the above pros and cons, the employer should be attentive to the idea of using a piece-rate earnings system. In many situations, its use will be economically beneficial, but in others it can only lead to unnecessary costs and complication of the business process. The same applies to workers - it may not always be beneficial for them to use piecework wages.

However, most of the risks and negative factors if necessary, can be leveled by using mixed techniques. To best understand the rationale for using such mechanisms, we can give examples of professions where piecework wages can be effective. These are professions such as:

An employee of a production workshop of any enterprise.
Call center employee or sales consultant.
Builder, subject to application effective form piecework payment, for example - piece payment.

Occupations in which piecework wages will demonstrate zero or negative effectiveness may be the following:

Area of customer service and corporate relations.
Logistics departments.
Security and watchman services.

How to establish a piece-rate wage system in an enterprise

When thinking about using this payroll mechanism, you should understand that piecework is not always the best choice for business. However, if a preliminary assessment of a given system demonstrates its effectiveness, then its implementation should begin with the establishment of an appropriate tariff schedule and development of methods for calculating and accounting for work performed. They must be assigned to internal local regulations enterprise, and also have a certain reflection in the collective employment contract, if present.

In addition, an indication of the use of piecework wages in relation to an employee must also be present in the employment contract concluded directly with him. The procedure for calculating wages and the methods by which they are provided must be known to the employee. At the same time, it is not necessary to have the fact of using the piecework system in the initial employment contract - the employer can change the organizational structure of employees’ work in local regulations, having previously notified them about this and subsequently concluding the appropriate additional agreements to employment contracts.

Information about the piece-rate nature of wages should be present not only in internal regulations or contracts, but also in vacancies - if it is missing, applicants will have the right to apply to the labor inspectorate, prosecutor's office or court to protect their rights in case of refusal of employment.

The employer independently determines the remuneration system, which, in his opinion, is most suitable for remunerating the work performed, in accordance with the approved regulations for conducting business activities. Using the piecework system, the head of a business entity encourages workers to fulfill assigned production tasks efficiently and quickly.

Employees become interested in the results of their work and in improving their own performance. The employer does not need to control each stage of work, because employees are not interested in producing low-quality products or in violating the deadlines for completing the task. Any actions of employees, expressed in a decrease in the volume or quality of products, negatively affect their wages. The piecework wage system is perfect for those employees who are ready to complete assigned tasks efficiently and on time. In addition, it protects the interests of the employer.

The piecework form of remuneration is the remuneration of hired workers for the planned production tasks they have completed. The system involves the accrual and payment of monetary fees for the organization and implementation production activities

based on the results for a certain time period in which a specific amount of work was completed. When carrying out calculation activities, the quality of the manufactured product or service provided is taken into account. This form of remuneration stimulates increased productivity of employees. However, its practical application is not possible for all employees of a business entity.

Types of piecework wages

Piecework wages are payments accrued based on the results of a completed task. It is used only in those enterprises whose production results can be expressed in quantitative terms or as a percentage of the completed volume of work from the planned indicator. The use of such a payment system is relevant for business entities engaged in production activities.

An employer, wanting to increase production volumes, can introduce piecework wages for machine operators, repairmen, as well as for workers performing loading, unloading and transport work. It is effective to use the system in the service sector, which can be displayed in quantitative terms.

Types of piecework wages

Applicable types of piecework wages

Depending on the circumstances, one of many types of payment for work performed may be used, taking into account quantitative characteristics. Direct pay involves remuneration for the performance of work of a pre-agreed volume, which is priced in accordance with fixed prices. Piece-bonus system implies the possibility of receiving an increase to the official salary if the planned amount of work is completed or exceeded. The remuneration of employees operating under such an agreement depends on the quantitative criteria of products produced or services provided, which must exceed the planned value. Piece-bonus payment can be

collective or individual. Individual piecework-bonus wages

- this is the employee’s remuneration for work performed in accordance with planned criteria. The amount of wages depends only on personal production indicators. When using a collective system, the employer focuses on the production performance of the team. Taking into account the results of the work of the team as a whole stimulates qualitative and quantitative criteria of activity, since team members independently control and regulate their actions and their comrades. Read also:

Chord payment involves the payment of remuneration to an employee only when he completes a specific amount of work, formalized in the form of an assignment. To determine its value, it is necessary to carry out a calculation that takes into account the parameters of the norms of production per unit of production and its cost, taking into account the division into the component stages of work. Wages do not depend on worker productivity when used in its calculations indirect piecework system. The amount of remuneration depends on the performance of other employees. For example, at the technological site, provided for by internal regulatory regulations, the labor of workers servicing electrical installations and vehicles, but not directly carrying out production activities, is paid.

Indirect piecework wages

Advantages and disadvantages of application

The advantages of using piecework wages are to provide the employee with the opportunity to independently regulate the amount of remuneration due to personal incentives to fulfill and exceed planned production volumes.

The use of the system by the employer presupposes that employees fulfill a mandatory requirement - compliance with the quality criteria of the standards in relation to the results of production activities. The employee earns, and the employer receives quality products with the highest possible productivity. Piecework wages can be applied to any employee. In this case, his position, education or reputation is not important.

However, along with the advantageous side of the system, there are negative nuances. It is difficult for an employer to predict events that may occur regardless of the will and desire of employees that affect labor productivity. If failure to fulfill the plan occurs due to force majeure such as equipment breakdown or the introduction of a new production line, bad weather conditions, or employee illness, then his earnings cease to depend on production volumes and the factor of personal interest in production results disappears.

Piece-progressive wages

When using a piece-rate system for remunerating employees, it should be taken into account that the required production volumes are achieved due to a combination of factors determined not only by the personal efforts of employees, their qualifications and abilities, but also by the technical and organizational preparation of workplaces. Employees, trying to achieve quantitative indicators, often do not pay enough attention to the quality of products or services. Excessive haste can lead to equipment breakdown, violation of technological regulations, excessive consumption of raw materials and materials, as well as an increased risk of injury. Piece wages are a system of remuneration for workers, the use of which can lead to exceeding planned production parameters, which causes a lack of demand for products due to an insufficient number of consumers. This could lead to lower wage rates.

One of the key organizational issues at the enterprise is the choice of the form of remuneration. In most cases, employees of enterprises are remunerated in accordance with their salary and hours worked. However, this scheme cannot be applied in all organizations.

For example, it is not suitable for enterprises where it is extremely important for the manager to increase staff productivity, and also where quantitative indicators of the work performed can be taken into account. In such cases, the most optimal option is the introduction of piecework pricing. The essence of this option for calculating employee remuneration will be discussed later in the article.

General information

A piece rate is a form of employee remuneration in which the amount received directly depends on the volume of work performed and units of production produced. You can introduce this option for paying staff if you can calculate the result of labor and track its quality.

In most cases, time wages are used. According to this scheme, remuneration is received, for example, by health workers, teachers, administrators, security guards, accountants, etc. Piece-rate pricing is a suitable calculation option for welders, turners, copywriters, taxi drivers, repairmen, etc.

Employee motivation

Often, a manager, in an effort to increase the interest of employees in their work activities, uses a combined calculation procedure: piecework rates and a fixed amount of remuneration.

As a rule, in such cases, the employee is guaranteed to receive a small monthly salary. It allows you to provide for essential needs during the off season. In addition to this salary, the employee is paid for each unit of product sold or produced.

Important indicators

To determine the piece rate, you need to know some additional quantities. Among them:

Production rate. It represents the minimum number of units of products that must be manufactured or sold in a certain period of time. As a rule, hourly, monthly, and daily norms are established.
Tariff rate. It represents the minimum guaranteed amount of remuneration for an employee per month. The rate is set in accordance with qualifications. It is worth saying that salary is only part of the salary. In addition to the tariff, it may include social payments, bonuses, etc.
It is a scheme for calculating payment for work in accordance with its complexity and qualifications of the employee.

How is the piece rate determined?

Let's look at the calculation procedure using an example. Let’s say that the enterprise has established a daily quota for a milling machine operator - 120 parts. The tariff rate is 1200 rubles per day. In a month of work, the milling machine operator was able to process 2,400 parts.

The piece rate is determined by dividing the rate by the norm:

P = 1200 /120 = 10 rub./piece.

The monthly salary of a milling operator will be:

10 x 2400 = 24,000 rub.

At some enterprises, the production rate is determined by the time spent on performing operations, and a slightly different procedure for calculating piecework rates is in effect. In this case, the calculation is somewhat more complicated.

Let’s say that an enterprise has established a time limit of 30 minutes for one operation on a machine. The hourly rate is 150 rubles/month. During a month of work, the employee was able to perform 600 operations. We will calculate the piece rate. In this case it is equal to:

P = 150 x 30/60 min. = 75 rub./operation.

For a month the employee will receive:

75 x 600 = 45 thousand rubles.

Direct piecework payment

Employees' earnings are determined in accordance with the volumes completed using fixed amounts established depending on qualifications.

For example, the piece rate for a seamstress of the highest category is 50 rubles. for one product. She sews 600 items per month. Accordingly, her earnings will be 30 thousand rubles.

Piece-bonus payment

With this form of calculation, a premium is provided for the production/sale of products in excess of the established norm. Bonus indicators can also include improved productivity, improved product quality, reduced defects, costs, etc.

Indirect piecework earnings

This form of remuneration calculation is used to pay the work of employees responsible for the uninterrupted operation of equipment. Thanks to these specialists, the main production personnel are not idle.

The calculation is carried out by multiplying the price by the number of products produced on the production line.

Piece-progressive form

This option is used to sharply increase production volume. With this scheme, until the standard established at the enterprise is reached, the calculation is carried out at fixed prices. If the volume of output begins to exceed the norm, increased tariffs are used.

This system is considered one of the most motivating.

Chord diagram

It involves payment not for a unit of goods, but for a separate operation or the entire work as a whole. The work order for completing a production task specifies the start and end times of the activity.

As a rule, this scheme is used in agricultural, transport, and construction enterprises. Moreover, it can be installed for an individual employee or a team.

Conditions for switching to piecework payment

It is advisable to introduce such a system at an enterprise if:

Accounting for manufactured goods or services provided has been established.
The supply of materials, raw materials and other resources for production is carried out uninterruptedly.
The company operates efficient system quality control.
Adequate tariff schemes and production standards have been developed.
It is possible to track quantitative indicators of the activities of each individual employee.
The company needed to significantly increase its sales/production level.

Advantages

Piece payment allows you to:

Increase production and sales volumes.
Increase employee motivation.
Monitor the quality of work of each person individually.
Encourage employees to develop themselves if pay increases depend on personal qualities.
Increase mutual assistance among employees. This is relevant for the chord brigade system - the entire team is interested in quickly completing the work.

Disadvantages of the piecework payment system

Among the main disadvantages are:

Possible decrease in the quality of work due to haste.
Necessity uninterrupted supply materials and components.
The employee's reluctance to do other things besides work. For example, cleaning workplace, clean equipment, etc.
Possible non-compliance with technology and safety rules.

The desire to quickly complete work can lead to high costs of raw materials and materials.