Question

With reference to time rate system of wage payment, answer the following question:

Briefly explain the time rate system of wage payment.

Answer 1

The Time Rate System is a method where wages are paid based on the time a worker spends on the job, regardless of the quantity of work done. It is calculated as:

Wages (W) = Time Spent (T) × Rate per unit time (R)

This system is simple and easily understandable, making it suitable for jobs where output is hard to measure. It also provides a sense of economic security to workers, as they receive a fixed wage based on time, not performance.