Piece rate Wages
If a labour is paid according to the work done, the wages are called piece wages.
This system can be used only where each individual's work can be measured.
- Attempts to increase earnings may result in the work being rushed which necessitates inspection to check the quality of work.
- The more careful workers who take longer time over their work always earn less than those whose pieces of
- work are not satisfactory. .
- It causes strain to workers i.e. the desire for higher earnings over strains and may injure the health of the workers e.g. employees tend to over work at the beginning and this may increase fatigue.
- It often leads to misunderstandings e.g. the compilation of work done or reductions of the rate may cause misunderstanding.