Wages are the most important of the motivational factors of the work of personnel in any enterprise, and also constitute a significant part of the costs. Therefore, the correct choice of form and system of payment directly affects the results of the firm.
In theory, the form of wages is understood as the object of labor accounting payable, which can be worked time or the actual amount of work performed. While the wage system is a set of tools for regulating the calculation of payments. It can be tariff, non-tariff, based on floating salaries or commission. However, in practice, wage forms and systems are often identified with each other, and are used to refer to the general system of organization of payments at the enterprise.
In addition to the accounting object, to determine the wage system, it is important to have additional incentive payments, the procedure for allocating earnings between employees. Depending on the factors listed, the basic forms and systems of wages are singled out. They are usually referred to as the time, piecework and lump, as well as subspecies: piece-progressive, time-based and piece-premium, indirect-piecework.
The time-based system is characteristic if the payment for labor at the enterprise is carried out in accordance with the amount of time worked. However, it should be emphasized that for this form it is also necessary to perform certain job functions. The very fact of finding an employee at work does not yet give him the right to receive a salary. Usually the amount of time worked is expressed in hours, however, any other time reference (for example, a day or weeks) can be selected at the enterprise.
The time-premium form allows incentive payments in the event of reaching over-standard results of work or for certain reasons, as a means of maintaining the corporate spirit (for example, on holidays or significant dates). Premiums can be one-time or regular, and can either be clearly dependent on certain achievements (for example, if the plan is overfulfilled by n percent), or be determined by one-off executive orders (orders).
The piece-rate system of payment is in the case when the object of labor accounting is the amount of work performed. Simple (or direct) piecework is charged depending on the number of products (services provided) at the established tariffs.
Piece-bonus payment allows bonuses, the basis for which can be certain achievements in work, overfulfillment of the rate of production, holiday or other important dates.
The piece-progressive system assumes an increase in the rates for each excess of the output rate.
Indirect-piecework is characteristic for the payment of dependent employees whose wages are determined in shares from the earnings of the main employees.
The lump-sum system
Its essence lies in the fact that a single wage fund is allocated to the whole staff of employees who took part in the work , without taking into account tariffs or piece rates. The application of this form and the wage system is rational in the case when the volume of salary money is allocated not for each production unit, but for the entire volume of output (or for a separate stage of production). At the same time, the possibility of accurately recording the workload of each employee, as well as determining its quality, is fundamental. For this, the so-called labor participation coefficients are often used.
Preference for this or that form and wage system is determined by the peculiarities of the production process, the possibility of distinguishing the areas of responsibility of personnel, the motivational function of each system for different types of production.