Financial Management (UNIT-lll)


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Methods of remuneration

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Remuneration methods: 1. Time rate 2. Piece rate 3. Combination of time and piece rate 4. premium bonus schemes 5. group bonus schemes 1. Time-based (Time Rate System)  Straight Time Rate System: Under this system, the workers are paid on a time basis i.e. hour, day, week, or month. The amount of wages due to a worker are arrived at by multiplying the time worked (including the normal idle period) by the rate for the time. Time-based wages payment is suitable for employees (i) whose services cannot be directly or tangibly measured, e.g., general helpers, supervisory and clerical staff, etc. (ii) engaged in highly skilled jobs, (iii) where the pace of output is independent of the operator, e.g., automatic chemical plants. Wages under the time rate system are calculated as under:               Wages = Time Worked (Hours/ Days/ Months) × Rate for the time   2. Output Based (Piece Rate System)  I) Straight Piece Rate S...
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Direct Taxes- 1 ( Income exempted from Tax (Section 10)

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