More and more businesses apply Piece-rate pay for employees. So what exactly is the definition of salary by product and how is it calculated? Find out more details about salary regulations and Payroll management system in business through the article below right now!
What is the product salary?
Understand in a simple way, businesses apply product-based salary regulation employees based on the quantity of quality products. To piece-rate pay businesses need to list the products produced in a certain period of time and determine a specific unit price for each product.
Product salary is calculated based on the number of products completed
Based onproduct-based salary regulation, employees can receive a salary corresponding to the number of products they make. If a worker produces more products with a higher unit price, the higher the wage will be. Usually the business piece-rate pay for staff to decideperiod Monthly.
>>>> Further Reference: Salary calculation software based on KPI
How to calculate salary by product
In businesses, the human resources department is the place hold Full responsibility for how employees are paid. For each form of piece-rate pay there will be a separate salary calculation formula as follows:
- Calculating salary by individual product: Product salary = Total number of products produced x unit price of product.
- How to calculate salary by product of the whole team: Product salary = Total quantity of finished products x unit price of products.
- Calculate salary by indirect product: Salary by product = Unit price of products served * total products produced by the main worker.
- Calculate salary by product with bonus: Product salary = Product salary + [(% of product bonus for 1% over-production * percentage of over-production) / 100 * product salary]
The law regulates how to calculate wages based on products
>>>> See More: How to calculate social insurance pension in 2023
Automate with Viindoo's product-based payroll software
Viindoo Payroll is one of the software in the human resources management solution suite of Viindoo HRM software . This payroll software provides a comprehensive solution to meet all needs of human resource management, timekeeping and payroll for businesses. Viindoo Payroll is suitable for all types of businesses and company sizes.
Viindoo Payroll automates payroll processing for each employee, each department and the entire business. This is a modern tool that helps businesses replace the traditional salary calculation method, saving time and resources for the organization by automating many important, typical tasks:
- Automatically collect salary data, salary allowance of all employees.
- Supports quick and accurate salary calculation, helping human resource management save time.
Viindoo Payroll Software Solution
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Replace the traditional salary calculation method, saving time and resource for businesses.
Features of product-based salary calculation software Viindoo Payroll
Employee data management
Viindoo Payroll is designed so businesses can store and manage all employee information effectively. This helps businesses easily calculate salaries for each employee quickly.
Businesses need to pay attention to the salary regulations set out
Calculate salary by product
Viindoo Payroll has a feature that automatically calculates salary based on the quantity and quality of products completed by employees. This helps businesses ensure fairness in determining the salary of each employee.
Viindoo Payroll has the ability to automatically calculate salary by product
Create payroll
Viindoo Payroll allows users to create detailed payroll based on the criteria you set. Users can customize payroll to their specific needs.
Users can create payroll right in Viindoo Payroll
4.4 Export salary report
With Viindoo Payroll, users can export salary reports in many different formats such as Excel, PDF... From there, users will easily share information and create high-quality documents for salary calculation.
In addition to the main features, Viindoo Payroll also provides users with many other support features such as: Salary calculation according to many different criteria, easy integration with other software, easy-to-use and user-friendly interface. user. When using Viindoo Payroll, your business's payroll work will be done faster and more accurately than ever.
Users can export payroll in many different formats
FAQs
What industries commonly use piece-rate pay?
Piece-rate pay is prevalent in industries such as manufacturing, agriculture, construction, call centers, garment production, and certain service sectors that involve measurable output.
Can piece-rate pay be combined with other forms of compensation?
Yes, it is possible to combine piece-rate pay with other compensation structures. Some organizations offer a base salary or hourly rate along with additional incentives through piece-rate pay to strike a balance between stability and performance-based rewards.
How do employers ensure fairness in piece-rate pay systems?
Employers must establish clear and realistic expectations, provide adequate training and resources, and regularly communicate with employees. Additionally, implementing periodic reviews of the piece-rate pay plan and addressing any concerns or discrepancies promptly promotes fairness.
Are there legal considerations when implementing piece-rate pay?
Yes, employers must comply with labor laws and regulations regarding minimum wage, overtime pay, and accurate record-keeping. It is important to consult legal counsel or labor experts to ensure compliance and avoid potential legal issues.
Can piece-rate pay improve employee engagement and retention?
Piece-rate pay has the potential to increase employee engagement and retention, especially for individuals who are motivated by performance-based rewards. However, it is essential to create a supportive work environment, provide opportunities for growth, and address any concerns related to workload or fairness.
Through the above article, Viindoo has brought to readers useful sharing of regulatory information piece-rate pay commonly used in businesses. The use of this form of salary calculation helps employees to calculate their own salary based on the number of products achieved. Hopefully, the above information will help readers understand how to calculate salary by product.
