Methods of wage payments

Wage payments

An Organizations include the involvement of three resources i,e. Land, Labour and Capital. These three resources are important for the Organizations for the effective operations of the Organisational activities. Labour resources which we called human resources are plays a very important role in the Organizations. The different activities or works in different departments of an organization is done by different individuals with required knowledge and skill.

The individuals or employees join the organization for some earning motive. They are paid by the organisation on the basis of their work.

An Organizations has different method on the basis of which they calculate the amount of wages to be paid to the individuals or the employees for their work in the organisation. An Organizations basically has two methods on the basis of which they decided the amount of compensation or the wage to be paid to the employees for their works.

Methods of wage payments

 There are two methods on the basis of which an organization decide the amount of wage to pay to the employees.

(1) Time wage method

(2) Price wage method

(1) Time wage method  : Under the time wage method the wage is fixed on the basis of time.  The time may be hourly, Daily, weekly, and monthly. For example - An Organizations has fixed the wage of rs-30 per hour, where an individual has worked 160 hours in a month. so his or her  wage at the end of the month will be 30*160= 4,800 rupees.

(2) Price wage method  :  Under this method of wage payment, when wage price is fixed on certain work or job. For example an organization has fixed the wage of rs49 per unit of production, where an individual has made the production of 80 units at the end of the month, so his or her wage after the month will be 49*80=3,920 rupees.

For the broad explanation of this topic please read the other articles