Calculation of piecework wages. Pros and cons of piecework and hourly wages

The types and forms of wages identified the piecework wage system as one of the main ones, along with the time-based system. We will tell you more about the piecework form of remuneration in our material.

What is piecework wages?

The essence of the piecework wage system is that wages are paid for the actual amount of work performed, regardless of the time spent. Naturally, piecework wages can be set only for those workers whose work results can be measured quantitatively (for example, the volume of timber harvested, the area of excavated land, or the number of products manufactured).

Accordingly, with a piecework wage system, the establishment of piecework rates is important. In the labor remuneration system, the piece rate determines the cost of a unit of labor result (for example, the cost of 1 piece of a manufactured part). And piecework wages are, in this case, the product of piecework rates and the amount of products produced.

The use of a piecework wage system does not mean that the employer will not control work time every piece worker. Be at the workplace during working hours in accordance with internal labor regulations and conditions employment contract- the duty of each employee, and the employer’s duty is to monitor compliance with this requirement (Article 91 of the Labor Code of the Russian Federation).

Piece wages in an employment contract (sample)

An indication of the piecework form of remuneration as essential condition labor relations with the employee is subject to mandatory inclusion in the employment contract (Article 57 of the Labor Code of the Russian Federation).

In an employment contract with a piecework worker, the wage clause may look like this:

“Set piecework wages to the employee based on:

1,000 rubles for 1 piece. manufactured product of group A;
1,500 rubles for 1 piece. manufactured product of group B.

The planned target for the number of products of both groups to be manufactured in the reporting month is communicated to the employee no later than the 25th day of the previous month.”

It must be borne in mind that if, due to lack of work or failure to fulfill the minimum plan by an employee, his piecework earnings turned out to be less than the minimum wage, but the working month was worked in full, the employer is obliged to pay the employee up to the minimum wage. After all, setting wages below the minimum wage is prohibited by labor legislation (Part 3 of Article 133 of the Labor Code of the Russian Federation). From July 1, 2016, the minimum wage was set at 7,500 rubles per month (Article 1 of the Federal Federal Law No. 164-FZ dated June 2, 2016).

Piece-bonus system

In practice, the piecework form of remuneration is usually used in the form of piecework-bonus payments. Piece-bonus wages are a form that involves not only the calculation of direct earnings taking into account the actual results of labor, but also the establishment of allowances (bonuses) for meeting and exceeding planned targets.

For example, an employment contract with an employee stipulates that exceeding the planned target for the quantity of manufactured products by at least 15% for the reporting month provides for a bonus for the employee in the same percentage of the monthly planned target. The plan for August 2016 was set at 200 units. products. The piece price for one product is 80 rubles. In fact, in September the employee produced 240 pieces. products (overfulfillment was 20%).

Therefore, for August 2016 the employee will be accrued:

piecework earnings 19,200 rubles (240 pieces * 80 rubles/piece);
bonus in the amount of 20% of the planned target for September 2016. 3,200 rubles (200 pcs. * 80 rub./pc. * 20%).

Total: 22,400 rubles (19,200 rubles + 3,200 rubles)

The piecework form of remuneration has several varieties:

straight;
piecework-bonus;
piecework-progressive;
indirect piecework;
chord.

Direct piecework wage system

With a direct piecework system, wages are calculated as follows:

The piece rate is determined by the formula:

The production rate is the amount of products (work, services) that an employee must produce per unit of working time (for example, 10 products per hour). Production standards are determined by the company administration. The amount of the hourly (daily) rate is established in the Regulations on remuneration and staffing table.

EXAMPLE

The hourly rate of Passive LLC employee Ivanov is 160 rubles/hour.

The production rate is 2 parts per 1 hour.

In April, Ivanov produced 95 parts.

The piece price for one product is:

160 rub. : 2 pcs. = 80 rub./pcs.

Ivanov’s salary for April will be:

80 RUR/pcs. × 95 pcs. = 7600 rub.

Piece-bonus wage system

In a piecework-bonus system, the employee receives bonuses in addition to wages.
They can be installed as in fixed amounts, and as a percentage of piecework earnings. Salaries are calculated in the same way as under the direct piecework system. Then the premium is added to it and they are paid together.

EXAMPLE

Petrov, a turner of the 3rd category at JSC Aktiv, is paid a piecework bonus. The piece rate for a 3rd category turner is 1000 rubles. for one finished product. According to the Regulations on bonuses of JSC Aktiv, in the absence of defects, employees of the main production are paid a monthly bonus in the amount of 1000 rubles.

In April, Petrov produced 100 products. His basic salary for the month will be:

100 rub./pcs. × 100 pcs. = 10,000 rub.

The total amount of wages accrued to Petrov is equal to:

10,000 rub. + 1000 rub. = 11,000 rub.

Piece-progressive wage system

With this system, piece rates depend on the quantity of products produced over a given period of time (for example, a month). As production increases, piece rates also increase.

EXAMPLE

Aktiv JSC has the following piece rates:

In April, Somov, an employee of Aktiv JSC, produced 120 products.

His salary will be:

(110 pcs. × 100 rub./pc.) + (10 pcs. × 110 rub./pc.) = 12,100 rub.

Indirect piecework wage system

The indirect piecework system is used, as a rule, to pay workers in service and auxiliary industries. In this case, their earnings depend
from the wages of workers in primary production who receive piecework.

The wages of service workers are set as a percentage of the wages of workers in the production they serve. This makes it possible, for example, to interest equipment adjusters and repairers in its reliable operation, since as a result more products will be produced on this equipment.

EXAMPLE

Petrov, an employee of the auxiliary production of Aktiv JSC, was given an indirect piecework wage. Petrov receives 3% of the earnings of workers in the main production.

In November, workers of the main production received a salary in the amount of 258,000 rubles.

Therefore, for November Petrov will receive:

RUB 258,000 × 3% = 7740 rub.

Chord payment

The chord system is used when paying crews. A team consisting of several people is given a task that must be completed within a certain time frame. The team is paid for this. Its amount is divided among the workers of the brigade depending on how much time each of them worked.

The prices for the assignment are determined by the company management in agreement with the team.

EXAMPLE

A team of two mechanics and one service technician repaired the lift in 3 days (24 hours of working time).

The total cost of work is 12,000 rubles. The mechanics worked 18 hours, and the adjuster – 6 hours.

The amount due to the mechanics will be:

12,000 rub. : 24 hours × 18 hours = 9000 rub.

The salary of one mechanic is:

9000 rub. : 2 people = 4500 rub.

The amount due to the adjuster will be:

12,000 rub. : 24 hours × 6 hours = 3000 rub.

Depending on the specifics of the activities of a particular company, it may use other remuneration systems.

The relationship between an employee and an employer is a complex process of interaction, which is based, first of all, on the main principle: both parties receive material benefits from each other.

In order to achieve this task, we are developing various ways organization of the remuneration system in companies. They can be divided into two large groups:

piecework form of payment;
time-based form of payment.

Within the framework of this article, the first form will be considered in more detail.

Piece wages - more complex phenomenon than time-based payment, as it can include various combinations and options.

Piece wages for modern enterprises is one of the popular forms of wages. It provides for remuneration for labor, which depends on the quantitative and qualitative indicators of the employee over the past period. In other words, payments are made exclusively for the amount of work completed. A bonus amount may be added to piecework payment for various additional indicators.

Concept of remuneration

The organization of remuneration is regulated by all-Russian labor legislation at the following levels:

minimum guarantees that an employer is obliged to provide to an employee;
tariff agreements of trade unions (or other workers' organizations) representing the interests of workers with employers' unions (at the level of guarantees secured by work results);
collective agreements between employers and trade unions (at the level of guarantees that a particular employer can afford);
according to tax laws.

Regulations currently in place include:

legislative establishment and change of the minimum wage;
tax regulation of cash income that is used to pay for labor by organizations, as well as income of individuals;
establishment of guarantees from the state.

Russian labor legislation defines the following forms of remuneration:

tariffs that determine the completion of work of a given volume and given complexity in a limited period of time;
at a fixed rate, which is paid to the employee per month in accordance with the established for him job responsibilities and a certain complexity.

The first form is piecework, and the second is time-based (or salary-based).

Both of these forms are a mandatory component of the salary - payments directly for work performed. Another component is added here, which takes into account special special working conditions. The third element is the incentive portion of the salary. Therefore, an employer who uses an incentive (bonus) system at an enterprise must:

make decisions about what he needs to pay, in addition to salary, also bonuses;
determine the rules for calculating bonuses.

Remuneration for piecework-bonus work is the sum of the following accruals:

payment for the work itself at existing rates;
allowances and additional payments for special working conditions;
payment of bonuses due to the employee in the event of certain conditions being created.

The concept of piecework wages

Piece wages should be understood as a type of payment (a method of determining wages) in which a monetary reward is paid for each unit of product or volume of work, taking into account the specifics, quality and complexity of production. Here we take into account the difficult working conditions, increased danger in production, harmfulness, etc.

Main types

The following types of payments are used in modern enterprises:

a simple piece-bonus form, in which constant bonuses are paid through the payment of additional monetary rewards for over-fulfillment established standards labor and absence of defects in the work performed and products;
piecework-progressive, which provides for the establishment of special increased prices for work performed in excess of certain standards established for it;
accord-bonus, which is used to estimate the cost of a set of works performed within a certain short period of time (the cost of these works is calculated on the basis);
indirect piecework is used during work auxiliary units companies.

Main features

The company's incentive system should be aimed at the following:

employee motivation management;
encouraging staff to best results to achieve the goals of the business plan in accordance with the company strategy;
increasing personal and team performance of employees;
establishing a direct relationship between remuneration and other benefits of employees upon their achievement of specific results in accordance with approved work plans;
attracting and retaining employees needed by the company;
positioning the company as the “best employer”.

The characteristic features of the remuneration system developed in the company under such a system are:

application only to those employees who receive wages according to the tariff;
dependence of salary on employee performance;
no need to constantly accrue bonuses, only if certain indicators are achieved;
the need for mandatory application of the regional coefficient, which has its own meaning in each region.

The incentive system must be comprehensive. It is built in accordance with employee motivation factors, their needs and expectations. The use of motivation tools allows the company to reduce staff turnover and increase labor productivity.

Establishment certain rules bonuses include the following types of information:

characteristics of the types and features of the procedure for applied material incentives;
characteristics of the conditions for calculating bonuses;
establishing special numerical values for calculating bonuses;
determining the accrual of monetary surcharges;
identification of conditions for deprivation of bonuses.

Positive aspects of piecework wages

The advantages of this system for the employer include:

the popularity and sophistication of this system, since it allows the employee to be interested in the final performance of his work and the growth of the efficiency of the entire company as a whole;
the willingness of staff to work productively, and not just get paid;
decline fixed costs firms through labor intensification.

The advantages of this system for the employee include:

income directly depends on the quality of the employee’s work;
You can hire newbies for any job.

Negative aspects of the system

Like any economic phenomenon, this system also has its disadvantages.

Negative aspects for the employer:

complexity of administration, which should be understood as the need to maintain a staff of controllers and accountants (this puts an additional burden on the wage fund);
a possible decrease in the quality of work, since the employee may be focused not on the quality of the work performed, but on its quantity (the need for strict control of defects);
the injury rate is higher than in normal conditions(the employee, in pursuit of the volume of work, loses attentiveness and concentration);
complexity of the labor standardization process.

Negative aspects for employees:

The “ratchet” effect suggests that an increase in the volume of work performed entails an increase in standards. With a constant increase in standards, the employee’s capabilities are at the limit, he ceases to cope and, as a rule, loses interest in productive work.
Reduced income when going on vacation or sick leave.

Calculation formula

Let's consider the question of how to calculate piecework wages. The calculation procedure determines the accounting of the number of units of goods produced by the employee. Each unit has its own cost. Therefore, the calculation of piecework wages is based on the quantity of the finished product.

For calculation we use two values:

production rate per day (NI);
official rate per day.

ZP = NI * D,

where ZP is the employee’s salary, thousand rubles.

With a piece-rate wage system, the following formula is used:

ZP = B * SCH,

where B is the time the worker needs to complete necessary operations in relation to a unit of goods, expressed in hours; SP - monetary value of one hour, rub.

Basic prices

Let's consider the question of how to correctly calculate piecework wages and prices for it. The piece rate can be calculated by a rater based on an analysis of the work of an employee or the team as a whole over several months.

The instructions for calculating the piece rate are as follows:

Conduct a performance analysis for three, six and twelve months. To do this, all products produced during the analysis period are added up and divided by the number of working days in billing period. Thus it turns out average products produced in one day. The resulting value must also be divided by the number of working hours, to obtain the number of products produced per hour.
We provide pricing for manufactured products. To do this, we determine the average daily salary of an employee. To make this calculation, we add up all the employee’s earnings for 12 months, divide them by 12 and 29.4 (average We receive a salary in one day.
Let's divide the average daily wage by the number of products produced by a worker in one day. We get the cost of one part.
To determine average piece rates, we add up the number of products produced for three, six, twelve months of all employees and divide by the number of days during which the products were produced.
We calculate average earnings for the analysis period.
We divide the average daily salary by the number of products produced per day. We thus obtain the average piece rate.

Calculation of maternity leave payments (B&R)

Let us consider the features of such payments for piecework wages. How to calculate the amount according to the BiR?

Amount of vacation pay according to BiR:

C = SD x PO,

where SD is the average daily earnings, rub.; PO - duration of vacation, days.

Before that, you need to take into account not only the minimum salary and the minimum insurance period. There are also restrictions on maximum income. Accordingly, the amount of benefits and maternity benefits is calculated from this maximum amount, regardless of the amount of income that exceeds it.

Calculation example

Let’s assume that the organization Akkond LLC has established piecework wages. In November 2017, the employee produced 250 units of goods per month. At the same time, the piece rate for one unit of goods in the company is 30 rubles. Then the employee’s salary will be:

250 units * 30 rubles per unit = 7,500 rubles.

An example of a calculation using a progressive form of remuneration is as follows. Let's take the same worker who produced 250 units. products.

The piece price for it is:

up to 100 units - 30 rub.;
from 100 to 300 units. - 40 rub.;
over 300 units - 50 rub.

The payroll calculation will look like this:

100 units * 30 rub./unit. + 150 units * 40 rub./unit. = 3,000 + 6,000 = 9,000 rub.

Obviously, for a given amount of work, the employee’s wages are higher. Piece-bonus wages can be calculated in the following form.

To all the above conditions we will add a bonus of 20% for meeting production standards, which is 250 units of goods.

Then the employee’s salary will be:

250 units * 30 rub./unit. = 7,500 rub.

The bonus will be:

7,500 * 20% = 1,500 rub.

Total earnings:

7,500 + 1,500 = 9,000 rub.

Calculation of piecework wages using an example showed that the option of a piecework-bonus system is more profitable for the employee.

conclusions

The transition to piecework wages for employees will stimulate labor productivity, and the number of products produced will increase significantly. But the mechanisms on the basis of which payment is made must work smoothly and clearly.

Hello! In this article we will talk about piecework wages.

Today you will learn:

What is piecework wages and where is it applied?
What types of piecework wages exist;
What are the prerequisites for transferring to piecework wages;
Advantages and disadvantages of this type of payment.

One of the most important aspects organizations labor activity in a company – choosing the form of monetary remuneration for employees. We are most familiar with the time-based form, when salaries are calculated depending on the salary and the number of days worked. However, such a scheme is not suitable for many types of activities where it is extremely important for the employer to motivate the employee to increase productivity, and also where it is possible to keep quantitative records of the work performed. Then another common form is used – piecework wages.

What is piecework wages?

Piece wages – This is a type of monetary remuneration for an employee where his earnings directly depend on the units of production he produces or on the volume of work performed, provided that the result of his work can be calculated and the quality can be tracked.

Download a sample piecework wage agreement

For most types of work, only one of two forms of payment is possible. For example, administrators, doctors, accountants, security guards, and teachers are on temporary duty. Piecework wages are typical for such professions as turner, welder, taxi driver, and member of a repair team.

However, there are often cases when, to further motivate an employee, an employer uses a calculation procedure that is characteristic of both forms. The employee is paid a monthly fixed salary, most often small but guaranteed, so that the employee has something to live on in case of the “off season”. In addition, the employee receives payment per unit produced or a percentage of sales.

Example. In many clothing or electronics stores, where sales volumes largely depend on the active work of the sales assistant, the company, in addition to the salary, may pay him a certain percentage of the cost of the goods sold. Owners have long come to the conclusion that using the carrot of a monetary reward is much more effective than threatening them with the stick of dismissal for being idle on the sales floor.

Concepts inextricably linked with the word “piecework”

Production rate - the number of units of products established by the company that must be manufactured within a certain time frame. Usually they talk about hourly, daily and monthly norms.

Tariff rate (salary) – minimum guaranteed monthly wage for a given skill level. Indicated in . The salary is only part of the salary, which, in addition to the salary, may include all kinds of bonuses and social benefits.

Price - this is the amount of earnings for one unit of work performed or products produced. It is calculated through the ratio of the tariff rate to the production rate.

Tariff schedule - tariffication of wages based on the complexity of the work and the qualifications of the employee. There are ranks or categories (for example, engineer of the first category or piece worker of the 5th category).

Calculation of piecework wages

Let us give two examples of such calculations.

Example 1. The daily rate of processing parts on a milling machine for a milling machine operator is 120 pieces. The daily rate for the tariff is 1200 rubles. In one month, the employee processed 2,400 parts.

The piece rate is calculated by dividing the daily rate by daily norm for details:

R = 1200/120 = 10 rubles/pcs.

In this case, the monthly salary of the master will be:

Z = 10*2400 = 24000 rub.

Example 2. The calculation looks somewhat different when the standard determines not the number of products, but the time period.

The time limit for using the machine is set at 30 minutes per operation. The hourly tariff rate is 150 rubles. During the month, the employee performed 600 operations.

We calculate the piece rate:

R = 150*30/60 = 75 rubles/operation

Monthly earnings will be:

Z = 75*600=45000 rub.

Types of piecework wages for workers

The existence of several types of this payment is explained by the diverse specifics of existing work where piecework payment is used.

Let's look at its main types with examples:

Piece payment type	Characteristic	Example
Direct piecework	Salaries are calculated based on completed volumes using fixed piece rates established in accordance with the employee’s qualifications	Piece price for seamstress highest category is 50 rubles per shirt. In a month she sewed 600 shirts. Her piecework earnings for the month will be 30,000 rubles
Piece-bonus	Provides for the payment of bonuses for exceeding production standards established by the company. Indicators for bonuses can be improved labor productivity, product quality, reduction in the number of defective products, as well as money spent	The monthly production rate for leather shoe upper manufacturers is 100 units. The company purchases leather with a reserve, but at the same time has established a monthly collective bonus in the absence of damaged material
Indirect piecework	Used to pay workers who monitor the smooth operation of equipment. Thanks to them, essential workers are not idle due to equipment breakdowns. To calculate earnings, the indirect piece rate is multiplied by the number of units produced by the main workers	A master adjuster serves several workshops. The tariff rate of the master is 15,000 rubles per month. Over the course of a month, the workshop produced 2,000 units of product against a norm of 1,500 units. The indirect price will be the ratio of the foreman’s tariff rate to the workshop rate: 15000/1500=10 rubles/unit. The master’s salary will be: 10*2000=20000 rub.
Piece-progressive	A very motivating system, it is used to sharply increase production. Until the production rate is reached, calculations are carried out using fixed piece rates. When production exceeds standards, payment is made at increased prices	A turner turned 300 parts in a month at a rate of 250. According to the piece rate, he receives 80 rubles per part. If the plan is exceeded, each detail is paid in the amount of 100 rubles. The basic salary of a turner: 250 * 80 = 20,000 rubles. Taking into account exceeding the norm: 50*100=5000 rub. Total salary of a turner: 20000+5000=25000 rub.
Chord	It is used when payment is made not per unit, but per stage of work or for all work performed. The work order also indicates the start and end dates of the work. Used in construction, agriculture, on transport. Can be either individual or team	An agreement on interior house work is concluded with a team of finishers. All work is divided into stages (carrying out electrical wiring, plastering walls, laying floors, etc.). Each stage of work is accepted by a responsible person, who determines whether the work meets quality standards, after which a settlement is made with the team
Mixed	Mixing piecework and time-based wages. It is used when the employer is interested in the constant presence of an employee at the workplace, while his activity largely determines his work efficiency	A nail technician has a fixed salary for being in the salon at certain hours. He will receive this money even if for the whole day, say, due to bad weather, not a single client comes to him. In this case, the master receives a percentage of the amount paid by the client for each work performed.

The procedure for transferring to piecework wages

An enterprise can switch to piecework wages if the necessary prerequisites are met:

Well-established accounting of manufactured products or services provided;
Presence of an uninterrupted supply of materials and everything necessary for work;
Effective quality tracking;
Developed logical tariff systems and local standards;
The ability to take into account quantitative data on the performance of each employee separately;
The existing need at this level of company development is to increase the level of production (sales) many times over.

The conditions for piecework wages are specified in individual and collective labor contracts, work acceptance certificates, work orders, as well as in the Regulations on remuneration. The latter is understood as a normative act that is valid only within the enterprise, which stipulates the procedure for calculating wages, the timing of payment of remuneration to employees, the rules for paying bonuses and allowances.

When approving such a document, the employer proceeds from the financial capabilities of his organization and also takes into account the norms of the Labor Code.

All important information must be spelled out in the Employment Contract, preferably in as much detail as possible.

Advantages and disadvantages of piecework wages

If an employer transfers his workers to piecework, he must be prepared for some difficulties. However, the advantages of this form are also undeniable.

Let's look at them:

Advantages	Flaws
Possible sharp increase in production or sales volumes	Possible deterioration in product quality due to rush
Inspiration for the employee, he can feel like a “mini-entrepreneur” thanks to control of his own earnings	The need for stability of all conditions for optimal performance (materials, etc.)
Ability to track everyone's work individually	The emergence of an employee’s reluctance to spend time on anything other than piecework (for example, cleaning workplace, clean equipment)
The opportunity to arouse competitive passion among employees and increase the overall tone in the team	Possible disruption of process steps
With a team chord system, mutual assistance increases, since the entire team is interested in completing the work as quickly as possible	Possible violation of safety standards
An impetus for self-development, if an increase in output depends on the personal qualities of the employee	No savings in consumables

There is no ready answer as to what form of wages or what type of piecework will be best. Everything is very individual and, above all, depends on the type and conditions of the organization’s activities. The same system can work differently in two teams. It seems to us that only with experience, through trial and error, will the employer be able to develop the necessary scheme of monetary motivation for his employees.

In many companies, workers are paid piecework wages. But what is it, when is it established and what rules for its payment are provided for in Labor Code Russia?

If the company has established a piecework form of remuneration, when calculating earnings you will need to adhere to special rules.

After all, there are several types of such payment, various conditions works, tariff rates. Let's figure out what situations legislative documents The issue of piecework wages is being considered.

General information

What is the essence of wages and who should choose how employees will be paid is the first thing you should understand. Let's consider the current provisions of legislative documents.

What it is

Salary is a remuneration (usually in cash) that a person receives for work performed in accordance with the agreement concluded with the employer.

Its size depends on the conditions, quantity, volume of work, and qualifications of the person. Remuneration should be understood as those relations that are associated with the definition of the settlement scheme of the company's management with hired employees.

Many researchers are of the opinion that remuneration and salary are different concepts. Salary is an element of payment. But no less often such words are considered synonyms.

Who determines the type of remuneration?

Remuneration is characterized by a systemic nature, so that a company employee has an idea of what and when he will receive money.

In accordance with the law Russian Federation a minimum wage may be established.

IN regulatory documents Rossi does not indicate under what conditions should be accrued.

Each company has the right to independently establish the requirements that its remuneration systems must meet.

There are the following types of payment systems:

piecework;
time-based;
chords, etc.

If the employer retains the right to independently choose labor systems, what should he prefer? In the case when a company is engaged in the production of something, it is better to focus on the piecework form, in which the employee will receive earnings, which will depend on his productivity.

It is also suitable for a multi-industry company, when it is quite difficult to maintain piecework accounting. Management often combines various methods.

Normative base

How to understand piecework wages

You don’t know how piecework wages are? Let's try to figure it out. Under piecework wages understand the form of remuneration for hired workers, in which the amount of earnings is determined taking into account the quantity of goods manufactured or volumes of work performed.

Piece wages are introduced to increase staff productivity. Often it is chosen by enterprises that are engaged in the production of material assets.

With this form of payment, it is in the interests of workers to do as much as possible. But piecework wages are not desirable if the production of goods requires concentration and precision, since the number of defects will increase.

Let's list the situations of who receives the piecework form of salary and when:

if there is a need to increase production volumes;
if plans have been made - quantitative indicators that affect work productivity;
if a volume growth strategy is used without compromising the quality of work;
If possible, keep accurate records of work performed and services provided;
if there is no downtime due to lack of material.

Disadvantages of piecework payment:

The quality of the product may decrease, as the employee strives to do more, not better.
Equipment may not be maintained conscientiously, since company employees do not want to waste time on this.
Safety precautions are violated (due to haste).
There are violations in production technologies.
Material and raw materials are overused. The employee is not interested in saving resources, since this will not affect his earnings.

On the Internet you can find a sample employment contract for piecework wages.

Division into types

Let's consider what types of piecework wages exist:

Direct view	Fixed prices are set and the person’s qualifications are taken into account. Labor is paid at such rates, based on the volume of work performed. There is no interest in achieving high results in the development of the company
Piece-bonus	With this form of payment, the employee can count on receiving a bonus if plans are exceeded. Bonus payments can also be made for the quality of manufactured goods, cost reduction, and productivity growth.
Indirect piecework	Used for workers who maintain equipment in the workplace. It is possible to accrue bonuses, for example, for the uninterrupted operation of equipment that is being serviced. The amount of payments will depend on the productivity of the main employees, what goods are produced on the equipment, what is serviced
Chord	Used by agricultural, transport, and construction enterprises. The goal is to pay wages for all completed work or certain stages. An advance is given to a person if time is required to complete the work. After completing the work, employees are paid in full
Time-based piecework	It is worth relying on the rules of time-based and piecework

What does the size depend on?

The size of the piecework salary will depend on the standardized time and output. Taken into account:

volume of work;
time worked per month;
quality of manufactured goods (presence/absence of defects);
complexity of work;
number of workers (the more a person works, the smaller the share each is entitled to);
conditions under which employees worked.

Labor productivity is influenced by general technical, organizational, and economic training. This means that if a company wants to see the implementation of the piecework plan, it is worth organizing a work process.

How to correctly calculate the amount (formula)?

To calculate the rate, the employee’s hourly wage rate according to his category is divided by the hourly production standards or multiplied by the approved time in days or hours.

Work records should be kept by foremen or other workers. Documentation for calculating the amount - work acceptance certificates, work orders, etc., which are created by the enterprise itself.

For direct piecework wages, the following formula is used to calculate an employee’s earnings:

For piecework bonus:

With piecework-progressive:

With chord:

With indirect piecework:

Calculation example

Here are examples of calculating piecework wages in some situations.

Direct piecework salary

The piece rate for the employee is set at 32 rubles per unit of goods produced. During the month, the person produced 280 units.

The payment will be:
Piece-bonus

The employee fulfilled the plan - produced 300 units of goods. In addition, he reduced material consumption by 20 thousand rubles. The piece rate is 27.5 rubles. premium must be paid in the amount of 20%. Let's calculate.

Salary for completed volumes:

Total salary:
Indirect piecework

The salary of an employee serving a machine shop is 8.5 thousand. The production standard is 1 thousand goods. 1.3 thousand goods were manufactured at the site. The salary will be like this.

Indirect price:
Earnings for the volumes of goods produced on the site:
Piece-progressive

The production rate is 300 units of production. The worker produced 345. The piece rate rate is 27.5.

Local regulations of the enterprise provide for an increase in piece rates when the production rate is exceeded:

Let's calculate wages based on production volumes:
Percentage for overfulfillment:
Output is 115%, which means the amount increases by 25%.

The salary will be:

Emerging nuances

There are a number of questions that haunt the company's novice specialists. We will answer those that are most often asked on Internet resources.

The procedure for its calculation

Let's consider how wages will be calculated, for example, in a beauty salon:

In the salon, cleaners, technicians, watchmen, and in some cases the administrator are entitled to a salary	In such situations, there will be no difficulties with calculations. The amount of salary assigned is the amount paid. Sometimes they add
The master and administrator can receive a salary and interest	The more active employees are, the more they will receive. But at the same time there is a guarantee in the form of a salary in case of absence of clients
The master can receive earnings in the form of interest	This is an economical option for employers, which leads to the fact that craftsmen leave for other jobs in search of better conditions
The foreman is paid a salary in the form of interest with additional payments	Is the most objective option

Let's consider the last situation. The master gets a job. At first he has no clients, since he has not yet established himself.

So that such an employee does not lose the desire to work in the salon, the employer helps him - in the first month he pays a salary equal to the minimum wage, and additional interest from each client.

In the second month you can pay half the minimum wage (as the number of clients will increase) and interest. In the third month, pay part 3 minimum size wages with interest.

Later, the employee will form a client base and will be able to earn a sufficient amount, and he will no longer need to pay extra.

An additional payment can be used to support an employee during a recession, when the number of clients temporarily decreases. Such periods most often occur in the winter months and in May.

To do this, it is worth setting a certain minimum, up to which you will pay extra wages if the master does not earn it himself (and it is not his fault).

Where are the expenses included?

It says that the amount should be included in labor costs.

What is accrued according to tariff rate, official salary, piece rate or as a percentage of revenue in accordance with the approved payment system.

In order to recognize the costs of paying for work under the piecework system when calculating income taxes, it is worth drawing up primary documentation of production. It is necessary to carry out payroll calculations for this type of payment.

The rationale is contained in, which states that expenses that are supported by documents should be recognized as expenses.

Documents must be accepted for accounting if they are prepared in accordance with established rules.

Economic justification of costs is possible if:

availability of primary documentation, which will confirm the accounting of the output of a certain employee;
taking into account the specifics of the company’s activities, production technologies, etc.

Is it possible to calculate in Excel?

What calculation rules should I follow? Salaries can be calculated in Excel, and there are quite a few developed schemes.

Let's consider one of the methods of calculating payment on a piece-rate basis with funds. Its features:

Every month it is worth calculating the amount of goods produced.
Such funds must be consistent with plans, but may vary.
For all employees separately, a calculation is made of his share, which he is entitled to in the fund.
The fund's assets will be multiplied by such shares. In this case, the amount that will be given to the person is determined.

Setting up calculations for other systems is not difficult - you just need to set the formula. When calculating the fund, more than one parameter is taken into account. The source of hours worked can be a table recording such hours.

The estimate of the worker's share is calculated based on the labor participation coefficient, which is established by the foreman and foreman according to established rules that can be laid down in Excel.

The hours worked and KTU are reflected. To do this, it is possible to create another table, which is not very convenient. It’s better to go with this option - the management sets the hours worked and the KTU is here.

Then you will need to add columns to the “Brigades” page, and because of this, the structure of the table, where there are already different links, is broken.

You can add 2 pages - one for the masters, the other to reflect the KTU, which are copied from the first. The brigade page can be renamed to “Hours”, an input sheet and KTU are required.
Next, links are configured in the “Input” cells from the “Clock” cells. Enter the “=” sign in cell A5, go to “Enter”, click on the same cell and press Enter.

Then A1 is stretched from the “Clock” sheet to cells A5:AJ28. It is also worth making other cells. The fill is removed so as not to confuse the user.

The “KTU” page is designed in the same way - copy the items in “Hours” and paste them into “KTU”. The reference to the number of hours should be removed.

You will get the following table:

From the “KTU” sheet, remove the restriction on entering values up to 12. The cells for the “KTU” indicators are highlighted, and click the column to check the information on the “Data” tab. “Any” is selected.

After setting up all the pages, add a salary sheet. The first few columns are links to the “Input” sheet. Next, the salary is calculated.

To do this, it is worth knowing what size it should be under normal conditions. The column will look like this:
The hours worked for the month are recorded:
To avoid using the production calendar every month, enter standard working hours for the year (in the “Lists”).

The following columns should also be formed:
After all actions are completed, you should get the following result:

Piece wages have many advantages and disadvantages. Whether such a system will be convenient for you depends on many factors.

Weigh the pros and cons and only then decide whether to take a job that provides such a remuneration system - if you are an individual, whether to establish this type of payment for your employees - if you are running a business.