Hourly pay: pros and cons

Many enterprises use a non-tariffsystem of labor remuneration. In this case, the salary of an employee depends not so much on his personal success as on the success of the whole enterprise or its subdivision, as well as on the volume of the wage fund. Tariff system of payment involves recording the results of a specificemployee (the amount of work performed or the amount of time worked). Thus, the tariff system of labor remuneration includes such forms of payment: piece-work, time-based and mixed.

Hourly pay is a special case time-based form of payment. It is used if it is difficultnormalize the work of an employee. You can calculate the number of parts that the worker made in an hour, but how to evaluate the work, for example, of a teacher? Of course, when hourly wages are paid, not only work time is taken into account, but also the qualification of the employee.

Hourly wages can be different. Simple hourly pay implies a fixed cost of one hourWork regardless of the outcome that the employee demonstrates. It is used in cases where the quality of work does not play a significant role. If the hourly labor payment takes into account the quality or volume of work performed, the hourly rate is added premium. The size of the award is agreed in advance. Finally, hourly wage with a standardized assignment in addition to payment for an hour of work implies an additional payment for a clear performance of the task. It is used in cases where overfulfilment of the plan is rather a disadvantage than an advantage.

Tariff rate is calculated taking into account the minimum wage. By TC, the standard of working time is40-hour work week. This noma can not be exceeded, but the number of working hours per week may be less - for example, with part-time employment. Then the minimum cost of an hour of work is calculated taking into account the minimum wage and the duration of the working week. The tariff rate can be higher than the minimum, for example, taking into account the complexity of the work or the qualification of the employee, but not lower. In case of hourly wage payment, wages are calculated by multiplying the established tariff rate by the number of hours worked.

Than hourly pay is beneficial for the employer? First, the working hour always has the sameduration, as opposed to the working day. The fixed cost of a working hour will allow the most accurate calculation of the amount earned by that or other employee, taking into account absence at the workplace for various reasons. Secondly, the hourly pay allows you to optimally pay for workers working part-time or a week, part-time workers or a flexible schedule. Thirdly, it allows you to save money - you pay employees only for the actual hours worked. Fourthly, hourly wages will help to control how efficiently your employees use their working time.

TO lack of hourly wage for employers it is possible to carry complexity of calculation (it is necessary to conductstrict accounting of the work time of each employee), as well as the ineffectiveness of hourly pay without premium. In addition, saving on paying already hired employees, you will have to spend on the payment of another one - one who will monitor the working hours of colleagues.

And what about the workers themselves? Do they agree to hourly pay? If you want to work with part-time employment, on a flexible schedule or part-time, then the hourly wage is what you need. Also hourly wages are suitable for employees, The working day of which can not be clearly standardized - for example, a teacher. In one day he can have two pairs, and in the other - all six. Often hourly payment is used when paying tutors, coming nannies, cleaners, etc. Hourly pay also suits waiters, cooks and barmen with part-time work (of course, subject to co-payment, say, during night hours). If you are a student and are looking for a job for the summer (for example, a promoter or a courier) - you will most likely also be paid for an hour of work. Hourly rate is convenient for uneven workload. Let's say you know that at the beginning of the month you have littlework, so in the office you have to beat the buckets, and at the end of the month the work is piled up, and you sit overtime. In this case, it makes sense to agree on a flexible schedule and hourly wage - you will know for sure that you get money for what really worked.

However, some unscrupulous employerstry to "squeeze" out of the employees a maximum, so they establish a large amount of work for one hour. If you do not cope with it - you will not get a premium to the minimum tariff. In addition, if you do not insist that the employer fixed hourly wages in an employment contractIt will not differ in principle from"shadow" salary in the envelope. Be sure to make sure that the employment contract stipulates that you are paid proportionally to the time worked.

And still, is hourly pay good or bad? It depends on your occupation, the desired schedule of work and the integrity of the employer.