Tariff system of wages
It is a totality of governmental standards, with the help of which is being made differentiation and regulation of wages of different groups of workers in dependence on complication and conditions, peculiarity and importance of some regions of country and branches.
The elements of TS:
a) wage rate reference book
it contains list of characteristics of works and requirements of workers. Each kind of work has its own qualified category.
b) tariff net
Scale of tariff categories and correlation tariff coefficients.
c) tariff coefficient
It’s a number, which shows by how much rate of this category is higher than rate of 1st category.
d) tariff rate
Value of wage for 1 unit of time
e) regional coefficient
It takes into account climate and other conditions of work.
Wage = Rate 1 category * Ktariff * Quantity of worked off hours
Wage of each worker is a share of fund of wages of all organization or department. Value of wage of each employee depends on qualification, coefficient of participation and quantity of worked off time.
Paid by the price wage
It’s payment for quantity of produced production. It depends on quantity of production and payment for unit.
Price by the piece – payment for one unit of good.
Pcg = 4 * Hвр or P = 4/Hв
4 – tariff rate for an hour
Hвр – standard of time for producing one unit of good
Hв – standard of output
Systems of piece-wage:
Wage is equal to value of produced goods
There is an extra payment for extra work
There is a progressive increasing rate
d) indirect piece
Wages of employees of auxiliary production
e) payment in accordance with amount done
Price for the whole work, not for parts
Pieced system is used if:
- exist quantity indicators, which depends on direct worker
- number of employees is fixed
- exact calculation of value of work
- workers of exact part of producing process can increase the value of work
- the use of this system don’t make quantity of goods bad
- there is an opportunity of standardization of work
Paid by the time wage
The value of wage depends on the quantity of worked off time and tariff rate.
value of wage depends on the quantity of worked off time and tariff rate
2. plus bonus
is used in order to increase quality and quantity
Paid by the time wage is used, when:
- production process is regulated
- conveyor type of production work in fixed temp
- function of workers is to control technological process
- increasing of quantity of production can damage its quality
- quantity result of humans activity can’t be measured
- quality of work is more important than the quantity
- work is dangerous
- work is not regular and not homogeneous