LawRegulatory Compliance

Hourly wage: for and against

At present, remuneration can be carried out in various forms. In the West, and more recently in Russia, hourly wages are becoming more popular. However, the question arises: is this payment optimal and what is more in it, advantages or disadvantages? Let's try to find out.

In many companies today the non-tariff system of payment dominates, which means that the employee's salary depends not on his achievements, but on the achievements of the whole company and on the volume of the salary fund. Tariff system, on the contrary, involves the recording of the results of each individual employee, the amount of work performed by him and the amount of time that he worked. At the same time, the tariff system of payment includes time, piecework and mixed forms.

The hourly wage is a case of a time-based form and is applied when it is difficult to normalize some specific work. Of course, you can calculate the amount of some "needlework" made in an hour, but at the same time it is almost impossible to assess the hourly work of a teacher or doctor.

Such hourly payment can be simple or with the addition of a premium. Simple payment implies a certain cost of an hour of work. The result is not very important, and quality is a secondary task. If the quality and volume are taken into account, a premium may be added to the hourly rate, the amount of which is determined in advance. Payment of hourly can be accompanied by a certain standardized assignment. In this case, the employee receives an additional payment for clear fulfillment of the task.

As a rule, the wage rate is calculated taking into account the statutory minimum wage. In addition, the amount of the rate is affected by the number of hours spent at work. Usually the tariff rate exceeds the minimum, because it takes into account the complexity of the work, the skills of the employee and other points. We should note that the tariff rate should not be lower than the minimum.

The hourly wage is considered very profitable for the employer due to a number of reasons. The thing is that the working hour is evaluated equally and has a certain duration. This fact allows you to accurately calculate the amount of earned money, if the employee suddenly absent from the workplace or was away for an hour or two. In addition, such a payment allows the head to clearly pay for the work of people who work not all day, part-time or a particularly flexible schedule. "Hourly" significantly saves money, as employees receive only for the time that they actually spent at work.

Naturally, hourly wages have their drawbacks. The first is the complexity of calculation, a strict accounting of the time of work of each employee. The second is inefficiency of payment without premiums. The third is the need for hiring a controller who will monitor the work and who also needs to pay something.

As for employees and the benefits of hourly pay for them, there are several points of view. If a person wants to find a part-time or part-time job , he will certainly be paid by the hour. Often there is an hourly pay for teachers, whose working day can not be exactly rationed. Usually hourly receive money from nannies, cleaners, waiters, tutors, cooks, barmen, couriers, since the workload is not uniform.

Nevertheless, there are many unscrupulous employers who set too high a bar for employees and give a large amount of work for an hour. As the saying goes, once you do not have to, so you have to understand the advantages and disadvantages on the spot. The decision on whether the hourly wage is suitable for you should depend on the type of occupation, work schedule and policy of the particular employer in his company.

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