Time Rate System

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this standard is known as overtime. Overtime is generally paid at a higher rate than the standard time-rate – reflecting the element of sacrifice by an employee. However, many employees who are paid a monthly salary do not get paid overtime. This is usually the case for managerial positions where it is generally accepted that the hours worked need to be sufficient to fulfil the role required.

Wages Earned = Time spent(Attended) x Wage rate per hour/day/week/month

Time rate system is suitable in case of:

i. Workers who are highly skilled
ii. Workers who are unskilled & trainees
iii. When the work is beyond the control of the worker
iv.When on the output of the previous worker in the chain, the work is dependent
v. When the work cannot be measured in terms of homogeneous units
vi. Close supervision is required for the job
vii. Work is of high quality & precision.

Advantages of time rate system are:

i. Much clerical effort is not required for the ...

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