ECONOMICS

Detailed explanation-1: -Efficient and experienced workers whose performance is more than 100% earn more wages because they get wages at 120% of the ordinary piece rate.

Detailed explanation-2: -Merrick Differential Piece-Rate System is methodology where by the employer pays the inefficient employee a minimum amount of income wage even if he or she accomplishes production of the expected output past the set or predetermined period.

Detailed explanation-3: -Note: Under Merrick differential piece-rate system the workers are not penalized for producing below the standard output up to 83%. Daily Min. wage is Rs.

Detailed explanation-4: -The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total earnings by the total number of hours worked. The employee is entitled to an additional one-half times this regular rate for each hour of overtime, plus the full piecework earnings.

Detailed explanation-5: -Definition: Taylor’s Differential Piece-Rate System was introduced by F.W. Taylor, who believed that the workers should be paid on the basis of their degree of efficiencies.