Advice 1: How to determine piece-rate pricing

Piecework rate is calculated when the transfer of employees salary or hourly wage rates on a payment form from the development, which is defined by a single unit of output produced per unit of time. Quote unit deals with the quantity surveyor on the basis of the analysis of the employee or the brigade for several months.
How to determine piece-rate pricing
You will need
  • - calculation of production;
  • - calculation of average daily wages.
Instruction
1
To determine piece-rate pricing for the products produced by one employee perform the analysis work for three, six or twelve months. All products manufactured for the period analysis, fold, divide by the number of working days in the calculation period. You will receive the average of products in one day. Divide the result by the number of working hours, you get the number of products per hour.
2
Next you need to produce cost of products. To do this, calculate the average daily salary of the employee. The calculation make by adding up all earned amounts for the 12 months divide by 12 and by 29.4 average number of working days in the month. You'll have a patch in one day.
3
The number of products in one day and the salary is two comparable things. For example, if your employee produces in one day 4 parts, then divide the average salary by 4, you will receive the value of one part. But this calculation often leads to the fact that prices per unit of production is not quite true, this is the analysis work of several employees working in one tariff category or having the same qualification.
4
To determine the average rate per piece fold the amount of manufactured products for three, six or twelve months teams of employees, divide by the number of working days during which the released products. Then calculate the average earnings over the analysis period. Divide the average daily salary by the number of products in one day. You will receive the average piecework rates, which will be more accurate.
5
This kind of calculation will allow you to make the payment of wages in accordance with the actual work of each employee. If someone is slower, respectively, and it will get smaller.
6
Translation for piecework stimulates productivity, and number of manufactured products increases significantly, but the mechanisms on which it is made, should run smoothly. The old equipment is impossible to produce record volumes of product.

Advice 2: How to calculate piece-cost

Piecework rate is used to determine the employee's earnings under a piecework system of remuneration. This calculationtion to measure the amount of the employee per unit of production or per executed transaction expressed in monetary terms.
How to calculate piece-cost
You will need
  • 1. Knowledge of methods to study timing: electronic timing and photos of the day.
  • 2. The unified tariff qualification reference of works and occupations of workers (ETCS).
  • 3. Tariff system operating in your industry.
Instruction
1
Determine the category of the work performed using ETCS. Rate the nature and complexity of operations and refer to the tariff level.
2
Using a scale of charges set out in your organisation or an approved centrally (in the public sector), determine the hourly tariff rate corresponding to this category of work.
3
Determine the time (in hours or minutes) or production rate in the physical measure (kilograms, meters, pieces, etc.) on the basis of photographs of the working day or timing.
4
Calculate piece rates. This can be done in two ways. If in Step 3 you identified the time, then piece quote can be obtain by multiplying the rate for your specified time. If you determined the rate of production, the piecework rate you get by dividing the rate of pay (hourly or daily) to an appropriate output rate (hourly or daily).
Note
The size of wages does not depend on when the work was performed: daytime or night time. To change the size of the piece-rates required if there is:
- change labour standards (standards and standard time) in connection with the improvement of the production conditions (e.g., changing technology, the replacement snap-on is more progressive in the improvement of working methods).
- revision tariff rates.
Useful advice
By determining the wages necessary to keep consistency of time units that are selected tariff rates, units of time, relative to established norms (hour or shift). If you are using a change rate of production when calculating rates use changeable (day) tariff rate. If you are using the hourly rate of production to determine pricing, use the hourly tariff rate.

Advice 3: How to calculate piecework

Piece – rate work is a payment in which the salary is calculated in proportion to the units of output produced or services rendered. Such payment is an incentive to increase workplace productivity, and frees employers from monitoring of the use of staff time. The basis of payment is the rate (tariff) per unit of output produced (services rendered). There are several types of piece wage: piece rate, piece rate bonus and indirect piecework.
How to calculate piecework
Instruction
1
To calculate wages under piece-rate wages, you have a unit rate multiplied by the number of issued employee units. For example, one made door put payment in the amount of 400 rubles. The employee produced for may 22 unit of output. Thus, 400 RUB/units*22 units=8800 RUB.
2
In the calculation of piece-rate premium based on the rate, but manufactured products in excess of paid above. For example, the same company, only the employee made in excess of the 5 doors. The head of the company found that made in excess of the paid time and a half. Thus, 400 RUB/units*22 units=8800 RUB and 300 RUB./unit*5 units=1500 RUB 8800руб.+1500 RUB=10300 RUB.
3
When calculating indirect piecework salary is calculated using the percent of earnings working in the unit employees. For example, the plant has produced doors for the sum of 60000 RUB the Head of the shop put 10 % of earnings. Thus, RUB 60000*10%=6000 RUB.

Advice 4: How to make piecework

In many enterprises are piecework system of payment of labour is being implemented to improve the performance of employees. The method of payment in which the amount of remuneration directly depends on the amount of work done, motivates subordinates. However, for the documents of the employee - "contractor" does not cause questions from the tax accountants need to prepare all the documents according to the existing rules.
How to make piecework
Instruction
1
Fill in the collective bargaining agreement a clause on the implementation of piecework system of payment of labour. Write all the details, including the types of "piecework", which will practice (direct, indirect, progressive, collective payment, and so on). Also indicate, employees of which departments in your organization can work on a piece-rate system of payment.
2
Give an Order to change the form of payment of labor on the basis of the Provisions about the payment. There, as in the collective agreement, must indicate the profession or position (or Department name) employees who will be transferred to the piecework system of payment of labour. Specify the date on which the Order comes into force. It needs to be approved by the head of the company personally signed.
3
Make copies of the Provisions relating to payment and Order on the transition to the new system of payment and acquaint under a list with them of all those employees who will be transferred to a "piecework". According to the Labour code of the Russian Federation only two months after reviewing the documents the employees can begin to receive a salary for the new routine. For those team members that went to work after the issuance of the Order, this rule does not apply.
4
Execute Orders on new employees, taken on a piece-rate system of payment of labour, the standard Order with the addition of the phrase "to Take a salary under the employment contract" or "Accept with a salary of under staffing". The wording "Form of payment of work - piece" is optional, however, if the employee insists on it, can fit it into the personal Order.

Advice 5: How to calculate piecework wages

Piecework pay is set by the collective agreement or other regulations binding only on the enterprise. If, according to the labor contract, the particular employee is set piecework form of payment, the calculation is performed in the following order.
How to calculate piecework wages
Instruction
1
Piece-rate pay involves the calculation of wages based on the number of executed workload and cost per unit of volume. Select which document will be the form: outfit-owner, a route map, statement of accounting, the outfit on piece work, the act of acceptance of work performed, etc. the Unified form of these documents does not exist, so develop them for your business yourself.
2
Package of essential primary documents determine the type of incentive payment. If it is straight piece-rate, necessary order establishing piece rates for each type of work and the outfit on piece work. For piece-progressive labor payment you'll need, in addition to outfit on piecework, the established piece rates for the work or products that will be produced above the norm. If the form of payment – piecework-bonus, make the outfit piecework and order bonuses.
3
If an employee is on indirect piecework wage (auxiliary workers and technical staff), then his wage should be in direct relation to how the work accepted by him or under his command, key people, teams or areas. In delivery to accounting in this outfit prepare units to perform specific type of work, the sheet of accounting of working time and wage rate of the primary worker.
4
Put the order responsibilities for accounting for output workers in each division of your company. Usually, it are masters or foremen. This charge order can be passed on to any other employee.
5
Generate payroll based on the number completed during the reporting period, work or produced goods and piece rates. Piecework pricing define as the quotient of hour (day) tariff rate established in accordance with the discharge of the work performed, one-hour (day) performance standard. The output rate is the number of products that a given worker having a particular professional qualification must produce per unit of time.
Useful advice
Wages accrued on a team, spread between its various members, taking into account hours worked, qualifications (tariff rates) and the labor force participation rate.
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