Wages: Wages are hourly pay that is paid together at the end of each week
Salary: A fixed amount (regardless of how many days worked) earned per year that is paid monthly into a bank account every month
Time rates: Wage is based on the number of hours worked multiplied by hourly pay rate . If employee agrees to work longer hours, they may get premium pay for the number of overtime hours worked,
The advantages of time rate:
:-) Certainty about wage that will be received, employment costs easily calculated, relatively not expensive and easy to administer. Also because there is no rush to complete task, work will be done properly and quality will be better
The disadvantages of time rate:
:-( lack of link between effort and reward and whatever the output,the pay will remain the same. Employees think that is unfair and poor motivation
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