Question

State any three merits Piece Rate System.

Answer 1

Three merits of piece rate system of wage payment are as follows:

1. Because wages are paid according to the output produced by workers under the piece rate system, it promotes efficient workers to produce more things.
2. It incentives workers to adopt a better way of manufacturing in order to increase their output and earnings.
3. When demand rises, it is easier for businesses to respond by raising output. To motivate employees to be more productive, a corporation may just need to boost their compensation level.