Circumstances in which the time rate method is preferable to the piece rate method of wage payment

 Time rates are more satisfactory than piece rates:

  • When a high quality of output is essential for example as in computer programming.

  • When the work cannot be speeded up, for example, in bus driving

  • When there is no standard type of work, for example, in car repair

  • When care has to be taken of delicate machines, for example, in medical tests

  • When output cannot be easily measured, for example, in nursing and teaching.

  • When working for long hours may undermine health, for example, in laundry

  • When labour is by nature a fixed factor of production which must be engaged whatever the output, for example, in secretarial and selling staff.

  • When periods of temporary idleness necessarily occur, for example, in repair work

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