Explain time rate system of remuneration.
Under Time Rate System, a worker is paid at a specific rate on the basis of time attended irrespective of the production achieved by him. The pay rate may be fixed on daily basis, weekly or monthly basis.
This system is useful due to the following features:
1) It is useful for both efficient and inefficient workers.
2) It gives assurance of minimum wages to the workers.
3) It is easy to calculate
4) It is easily understood by the workers.
5) If the output cannot be measured
6) If the standard time cannot be fixed.
7) If the output is beyond worker’s control.
8) If quality and accuracy is of prime importance.