Premium bonus method

In the illustration 11, it is said that as per Halsey the employee earned Rs.420 as bonus and as per Rowan he earned Rs.450. Your point is that if the employee do not opt for any of the bonus schemes then his pay will be Rs.480 (8 hours x Rs.60). Do you think the employee will stop working after 6 hours when he is being paid for his efficiency? Since he is getting bonus payment he will either work efficiently for the remaining 2 hours also or save the time for earning more money in some other way. But since here we are calculating for a fixed output to be achieved, we only concentrated on the efficiency (in terms of time) of the employee in getting the targeted output. So thinking in a different way, we can also assume that the employee worked for 8 hours where only 6 hours are for the targeted output and remaining 2 hours for extra output paid, either by the normal wage rate or by applying the bonus schemes (This depends on the employee efficiency and the company's rules).

Madhuri Veluri

CA Inter

★ 2K+

13-Jul-20 18:30

Thank u very much mam......

Thread Starter

abhishek kapale

CA Inter

★ 980

13-Jul-20 19:36