Piece Rate Pay
A compensation scheme that pays an employee a set amount for each unit produced or task completed.
Piece rate suits work where output is countable and quality is easy to verify. Where quality is hard to check, it can push volume at the cost of defects.
Often confused with
- Commission
- Piece rate pays per unit made; commission pays a percentage of what is sold.
Taught in
See also
4.1.D.2