Time wages

The time wage is a form of personnel remuneration in which a certain wage rate is paid per unit of time. It is therefore not directly performance-oriented, but the company expects at least a normal performance to be achieved. The time wage is possible as hourly, daily, weekly or monthly wages. In addition, a distinction must be made between:

Time wages without performance bonus

The time wage without performance bonus, at which a certain wage rate is paid per unit of time. There is an indirect reference to performance, which is expressed in a specific performance expectation. Its calculation is made:

Time wages = wage rate per time unit * number of time units

The time wage with performance bonus, which is often paid as a quality, quantity, punctuality, attendance or savings bonus. It should not be performance wages such as B. the Piecework wages or premium wages.

Application of time wages

In principle, the application of the time wage is particularly recommended if:

• The direct connection between volume output and remuneration cannot be established.
• The performance cannot be measured or can only be measured with great effort, e.g. B. creative activity.
• The care, precision and quality are more important than speed and quantity.
• Excessive working pace can lead to health problems or accidents.
• The quantitative work result cannot be influenced by the pace of the employee.
• Settlement of the time wage is simple compared to other forms of wages. The company bears the risk of underperformance by employees.