Difference between piece rate system and time rate system
The upcoming discussion will update you about the differences between time rate and piece rate system of wage payment. Difference # Time Rate System: 1. Base: Under this system, the wages are paid on the basis of time. 2. Stability of Job: Under this system, generally the employment is stable. 3. Suitability: This system is […] Under this system, workers are actually paid on the basis of output and if the piece rate wages fall below the time rate wages, the worker is paid on time rate basis. The difference will be recovered from his wages when he earns more than the fixed wages. What is the difference between time rate and piece rates? On time rate you are paid for the number of hours worked. On piece rate you are paid for the quantity of goods you produce.