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Accord wage - what is it?

Any employee, fulfilling the duties assigned to him, wishes to receive payment for his own labor. However, do not limit yourself to verbal agreements with the employer. It is advisable to have an appropriate agreement, which will indicate important conditions, including a payment method. On the labor market there is piecework, time and lump-sum wages. It is about the latter that you will find information in this article.

how is the lump sum wage fund determined

Features

Let's find out in more detail what kind of settlement is between the employer and the employee. Accord wage, in fact, is a kind of piecework, but it has significant differences.

Piecework system allows you to pay employee remuneration in accordance with the amount of work performed. This is relevant, for example, in the production of any products, the number of which can be calculated. Accord pay on this basis resembles piecework. However, its terms also include clearly defined deadlines. Calculations are made for each stage or amount of work performed.

Accord wages imply a clear deadline for fulfilling duties. Therefore, not only the volume of work performed is recorded, but also the amount of time spent.

employment contract accord payment system

Income distribution

Income when using this method of payment may not be paid to a specific employee, but to a team.

After receiving payment, a question arises regarding how to distribute income among employees. The procedure for their calculation should be fixed in internal acts. Moreover, the distribution should be made in such a way that the income of each employee is not lower than the established minimum wage.

As a rule, revenue sharing is relatively simple. The total amount paid for the implementation of a specific order is divided by the number of workers in proportion to the effort expended. Simply put, not everyone gets the same salary. Its size depends on the number of duties and the volume of work performed.

Relevance

A chord system of remuneration is used to perform a specified amount of work on a specific date.

Its application is relevant if the entire planned volume cannot be completed during the work shift. To implement the project, a set of measures is required that will distribute the load over several periods.

The chord system is also relevant in the event of any abnormal situations in the workplace. This method is actively used for settlements with homeworkers whose activities the employer cannot control, but at the same time it has a measurable result.

lump-sum wage calculation formula

Regularity of payment

In accordance with the Labor Code, wages must be paid to the employee twice a month. However, the accord-based system of remuneration provides for different deadlines for fulfilling orders with making settlements upon completion.

In order to fulfill the requirements of the legislation, the customer can pay a remuneration equal to the minimum wage in established periods. In the future, all such payments will be deducted from the total cost of the order.

If an employment contract is concluded, an accord-based remuneration system must certainly be indicated in it. That is why the employee must be familiar with a similar document when applying for a new job. In the future, this will avoid disagreements and unpleasant surprises.

Calculation formula

Accord wage has many features, some of you already know.However, the question regarding the method of calculation remains open.

The formula by which the amount of remuneration is determined when using the aforementioned wage system is an algorithm. It may vary depending on the conditions of work. For example, an entire order can be executed by one or several executors; a work process can consist of several stages.

the accord system of remuneration provides

These indicators strongly affect the features of the calculations. To calculate the total cost of a complex order, you need to know the cost of each type of work. Next, the cost and volume of each type of work should be multiplied, and the resulting data should be added up. So you can calculate the total cost of the order.

In the simplest version, the calculation formula for a chord system of remuneration is as follows:

  • Cost = Cost of work * Volume of work performed.

The scope of duties depends on the features of the order. For example, this may be the number of parts completed or the performance of any actions, etc.

Now you know how a chord payroll is determined. However, you need to understand that the formula may be complicated depending on the features of the order.

Examples of calculations for one employee

Any theory is better absorbed in practice. Therefore, let's analyze the two most popular options.

Option one involves the sole execution of an order by an employee. According to the terms of the contract, he must complete 10 parts by the deadline. The cost of each of them is 100 rubles. As a result, subject to the conditions, the amount of employee remuneration will amount to 1,000 rubles. It is defined as the product of the amount of work performed (manufactured parts) and the cost of one unit.

Examples of calculations for a team of employees

If the work is performed by a team, with a chord system of remuneration, earnings are set in a slightly different way.

lump sum pay

How does this happen? Suppose two employees were hired to guard a warehouse for ten hours. Payment for each hour is one hundred rubles.

First you need to calculate the total income. It will be a thousand rubles.

If one employee spent four hours at the workplace, and the second six hours, then payment will be calculated in proportion to the time spent at the facility.

So, to calculate the amount of remuneration for the first employee, you need to divide the total income by the amount of work, and then multiply by the amount of work performed by a particular employee.

In this case, the following calculations will be obtained:

  • 1,000 / 10 * 4 = 400 (rubles).

Similarly, calculations are made for the second and subsequent employees using a chord system of remuneration. The calculations are relatively simple, but require care. Mistakes made can result in an unfair distribution of total revenue.

a chord system of remuneration is used for

Chord-premium pay system

This term is relevant if, when calculating the amount of remuneration, the so-called coefficient of labor participation is used, and premiums are included in the final payment.

This ratio plays a big role. By default, it is taken as a unit. However, it can be reduced or increased for some reason. Let’s briefly mention them.

The increase is due to the availability of qualifications or experience, reduction in production costs, the use of the latest developments, etc.

However, there are factors that can reduce the coefficient of labor participation. These include lateness, non-compliance with safety regulations, the use of faulty equipment, etc.

So, the chord-bonus calculation system is relevant if bonuses are included in the total payment, and the distribution of income between employees uses such an important parameter as the coefficient of labor participation, which reflects the contribution of each individual employee to the overall process.

with a chord system of remuneration, earnings are established

Each enterprise independently decides which settlement system to use for interacting with employees. For example, a chord one implies a set time limit, therefore, it encourages employees to complete activities in a specified period. And for a modern enterprise, this method of settlements with employees has some advantages, since timely execution of work guarantees the competitiveness and profitability of production.


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