As you know, wages are an integral part of the labor relations of the employee and the employer. At all times, the question arose of how to pay labor most efficiently. There are two fundamental types of payroll: time-based and piece-rate. Each of them has its pros and cons. However, in our country the most common time wage, so you need to know about all the nuances and aspects of its accrual.
In what cases is it used?
This type of payment is used when it is impossible to determine the amount of work performed by an employee. Time wage - remuneration for hours actually worked in the reporting period. In addition to time, the qualifications of the employee and their working conditions are crucial in this aspect.
Accrual for ordinary workers is based on the tariff rate, and for managers it is realized in the form of official salary. Calculation of time wages is based on a time sheet. It displays the days and hours worked by one or another employee, taking into account those that he missed. This system is quite rare in this form, its branches are more common. We will talk about this below.
The legislative framework
According to the regulatory legal acts of our country, wages must be composed of several components. These include a certain salary, bonus, bonus for qualifications, additional payments for seniority, as well as other payments established by law. In the Labor Code, namely in Art. 133 it is indicated that a person who has worked the monthly norm of time and coped with the amount of work has the right to receive wages, the amount of which cannot be less than the minimum.
It is worth noting that the cost of living and other limits are set by the state throughout the territory. However, in specific subjects, the threshold may vary.
The time wage system allows compliance with certain documents. These include a general labor contract, acts that are valid in a particular organization, and an agreement with a trade union. This body protects the interests of the employee and monitors the exercise of his rights.
Classification
As already noted, the time-based form of remuneration in its pure form is extremely rare. In most cases, its varieties are applied, which are regulated by the Labor Code of our country.
The following types of this method of payroll are distinguished:
- simple;
- premium time-based;
- time-wage;
- piecework time;
- time-normative.
Each of them has certain features. To better understand how the calculation of wages occurs, you should consider all varieties separately.
Simple
In this case, the name speaks for itself. This form of payroll differs in the following:
- payment is carried out in accordance with the tariff rate;
- months, days and even hours can be used to calculate specific earnings as a time period;
- formula for revealing the total wage:
Зп = Вф x Тф, where:
Зп - labor remuneration (final);
Bf - the time that was actually worked out by the employee;
TF - tariff rate.
This formula is very often used in practice, as it is simple and quite effective. Consider the accrual of simple time-based wages on a specific example. The employee set the rate of 200 rubles per hour. At the end of the month, he worked 100 hours. Using simple mathematical calculations, we get the result: Зп = 200 * 100 = 20,000 rubles.
Premium time wage
This form is already more perfect than the previous one. Here, the calculation takes into account not only the tariff rate and actually worked time, but also the quality of the work performed. In the case of a job well done, an employee is awarded a bonus. It is added to the simple wage formula.
In other words, the final salary consists of a salary and a bonus part. The latter depends solely on the employee himself, the quantity and quality of the tasks performed. It is worth noting that the time-bonus payment is quite effective, as the additional monetary reward motivates the employee to work efficiently and quickly.
Salary
This system differs in some features, among which there are:
- Monthly wages are fixed.
- To get the money, the employee must work the number of hours specified in the employment contract.
- The total amount does not depend on the number of days worked. The system is as follows: fulfilled the volume - received wages, even if it exceeded the norm of working hours.
- Salary may change in the case of leaving on sick leave or on leave. Also, the reason for the change may be a pass without a good reason. It should be understood that the payment will be made on the basis of salary, and not the tariff rate.
This type of time wage is quite rare due to its low level of efficiency. However, sometimes depending on the specifics of the work, the salary can be seen at the enterprise.
Time-piece
In practice, such a system is often called mixed. The following nuances of this type of time wage are distinguished:
- It is used in most cases by trading enterprises. It’s hard to find a more effective way to pay for direct sales.
- This system is also great for those organizations that use shift work schedules. For example, during the day, payment depends on the amount fulfilled, and at night there is a bonus for overtime work.
- The calculation is made by adding to the basic salary a certain percentage of the total amount of products sold.
At present, the piecework time system of remuneration is very popular. It is especially actively used in enterprises whose specifics are sales. This system at the same time motivates employees to get more profit, and brings benefits to the company from the products sold.
Hourly payment
This form of payroll is also widespread. Its essence lies in the fact that the employee, in addition to a certain amount per hour, receives additional money for the implementation of the plan. Speaking of motivation, it can be noted that much attention is paid to it in this system.
The salary in time wage, as we have found, depends on many factors. The first place here is the definition of the type of accrual, and, based on this, the calculation is carried out. The employer must carefully analyze and decide which form of remuneration is most acceptable in a particular situation. It should be borne in mind that the employee is primarily a person, and therefore, wages must not be too low. On the other hand, the employer needs to protect itself from payments simply for the employee's stay in the workplace.
Payment should be made for some actions, contribution to the development of the enterprise.Therefore, you should seriously study this issue, and then opt for a more suitable form of payroll.
Efficient use of time wage
Of course, each employer is in a different situation, and must choose a payment system individually. However, in general terms, several points can be distinguished when the time-based form will be most effective:
- increasing employee motivation;
- the establishment of working discipline in the organization;
- motivation for advanced training;
- in case of technical work for industrial purposes;
- if the organization uses a conveyor type of production;
- when the first place is not the quantity of goods produced, but their quality.
In specific situations, you need to look and evaluate effectiveness individually. In one enterprise, this form of payroll will take root well, and in another it will break the system. Examples of time wage are many. Take any trade organizations involved in the sale of products. In almost all cases, wages depend on how many goods were sold. This allows you to stimulate workers and make a profit for the enterprise.
Reflection in an employment contract
In practice, this agreement is not given due attention. The employee needs to know that the labor contract spells out all the rights and obligations of the parties. They should be carefully studied to avoid unpleasant situations.
An obligatory part of this agreement is the wage clause. If the employer has chosen a time-based system of remuneration, then the tariff rate or salary must be indicated in the form of a certain amount or coefficient. Also, the employment contract includes all due compensation and allowances.
The bonus part is often indicated in internal regulatory documents, specific conditions for receiving a monetary reward are prescribed there. A time-based system is best used to pay for work that is difficult to standardize on. It is also recommended to use this form in the service sector. Namely, in those types of activities where overfulfillment of the plan is not required.
Time-based pay system is the most common and effective. Currently used in most developed countries of the world.
Pros and cons of time-based form
We will consider this question in detail. To begin with, we will determine the benefits for the employer. Of these, there are:
- reduction of funds spent on product quality control;
- reduced turnover of qualified personnel, which makes it possible to save on training;
- workers strive for cooperation, and this significantly increases labor productivity;
- the employer pays for the hours actually worked.
In addition, some of the advantages of this system are manifested for employees:
- getting stable regular earnings;
- the higher the qualifications, the more they pay;
- work in a friendly team.
Despite all the advantages, time-based payment has disadvantages. For the employer, they are expressed in the following:
- it is necessary to constantly monitor the volume of production;
- additional full-time unit;
- employees receive the same salary, and the effectiveness may vary significantly.
The disadvantages for the employee include:
- the salary is lower than with the piecework system;
- the number of products made does not affect the increase in wages.
It should be noted that the time-based system is not suitable for everyone. To use it effectively, all factors should be analyzed.
Making the transition to the piece form
It is worth noting that piecework and time wages are not opposites. Sometimes a situation arises when you need to switch to a different way of calculating salaries. To do this, you must fulfill a number of requirements:
- there must be a document confirming the transition;
- changes in the terms of the labor agreement are carried out after agreement with the trade union organization;
- the contract must be submitted in writing and signed by both parties;
- an indication of the reason for the transition, for example, reorganization, change in production technology or otherwise.
It is worth noting that the time-based wage system is very common and quite effective. In this article, all aspects and nuances of this method of payroll have been most extensively considered. It should be remembered that the choice of the form of remuneration remains with the employer. He needs to think through everything so that there are no unpleasant consequences.