Wages
Share View PDF | Print View | Views: 665 |ncome - Deductions = disposable incomes
Deductions = income tax/membership bill
Disposable income = consumption (C), savings (S), investment (I)
Net pay: the disposable income. Also called "pay in your pay pocket". What you earn
Gross pay: total income before any deductions are made + any bonus etc.
Methods of Payment for Work
1. Time rate
2. Piece rate
Time rate: worker are paid based on the number of hours worked
Services are paid this way because the output cannot be quantified or measured. The QUALITY of the output is what counts here. Things will not be well managed or produced if they are paid on the quantity they make (if it could be measured).
- Supervision is required or then work will not necessarily be done in the time paid
- It does not differentiate between the efficient and inefficient workers
Piece rate: workers are paid based on the number of units of output produced or processes/sub-processes performed
Goods are paid this way because productivity can be measured.
- No supervision is needed because you are paid on productivity so everyone is productive
- There will be good teamwork because they are all interdependent
- Quality can suffer because they only want to produce
- Workers may over-produce, and so the firm is left with a lot of unsold stock which means they might sell at a very low price
- It could cause workers to be hostile/envy if one is paid more than the others
About the Author
by: Admin
Total views: 665
Word Count: 1201
Date: Sun, 21 May 2006 Time: 12:00 AM
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