What Is Piece Rate?
Most production workers are paid on piece rate basis. This means that you are paid for each piece produced. All products have been time studied, and a standard price per piece is set. A worker will receive the prevailing wage rate when 100% productivity is achieved. Anyone working over 100% productivity will receive commensurate wages. The less time it takes to finish the job, the higher the pay will be. Employees will be subsidized to minimum wage while in the training period if necessary.
